Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

Are you speaking of our bodies Ardy, or the economy? Yes indeed humans like the idea of apocalypses. It gets the blood pumping. Utter destruction, chaos, wailing and gnashing of teeth, people eating people on busses—the list goes on.

But humans want stuff and will continue to want stuff. The cost and supply of energy and materials are the question mark. Western economies were built on cheap energy and plentiful resources. Both are gettting more expensive so that is why I see a slowing, but not a collapse, of the global economy. Global have nots want stuff and will buy stuff if they have the money. It’s all new to them so they haven’t yet realized you cannot buy happiness. But you can try. So as long as their economies grow and build a middle class I do not envision catastrophe.

The plight of the middle class in the US is another story. My crystal ball predicts the “iron law of wages” taking hold whereby wages for workers in the US drop and wages in developing countries rise, meeting somewhere near to each other. That will lead to wailing and gnashing of teeth in the Western world and will make for an interesting political sell.