PART2

Let me tell you in no uncertain terms that we are facing a synchronised global economic depression and I am not the only one that is saying this. In early February, the International Monetary Fund’s chief Dominique Strauss-Kahn said the world's advanced economies -- the U.S., Western Europe and Japan -- are "already in depression”. Gordon Brown, the UK’s Prime Minister also used the word "depression" to describe the global economy, although his aides quickly said it was a slip of the tongue.



All economies are now suffering


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The politicians and others of course avoid using the term “depression” for fear of creating a panic; instead they use terms such as “severe recession” or “one of the most serious financial crises since the great depression”, etc. But they all are saying the same thing, we are in a depression and all the available data support this. An important fact to remember is that this depression is synchronised and this synchronicity has been made possible by the globalization and accompanying deregulation; the very things that were making workers poorer and the rich, richer.

Now the chickens have come home to roost. All economies are now suffering. Such promising economies as Iceland’s saw its GDP shrink by 10%, while the success show case of Europe, Ireland, had its GDP shrink by 6%. Germany, the euro zone’s biggest economy shrank by 2.1% in the three months to December, seconded by Italy, which suffered a 1.8% drop in GDP. The French economy also contracted by 1.2% while IMF put Spain on its vulnerable list. UK ‘s GDP has also suffered and is forecasted to contract by 3.5% in 2009.

The misery list includes most of the Eastern European countries as well with some such as Ukraine set to experience severe contraction. According to IMF Ukraine’s GDP will shrink by 8 to 10% in 2009. The Russian economic growth is also set to fall. According to the Russian Deputy Economic Development Minister Andrei Klepach the forecast for the Russian economy has worsened to a 2.2-percent contraction in GDP.

Japan ’s economy, the second largest in the world, contracted by 12.7 per cent on a seasonally adjusted annualised basis in the fourth quarter and is set to contract by. According to the Taiwanese government, Taiwan’s GDP will shrink by 3% in 2009. Another big economy in Asia is Korea. According to S&P sovereign ratings, Asia's fourth-largest economy will contract by about 3.5 percent this year. All other South East Asian economies are reporting severe slow down or outright contraction except China