New York Stock Exchange – City fears of ‘Great Depression Mark II’ Photo: REUTERS
Edmund Conway, the Times Newspaper Economics Editor, reported recently that leading City experts have started raising the prospect of “Great Depression II” amid worries that the European economic crisis could trigger a deeper bout of chaos.
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Let me ask you this: do you really believe that the so-called experts have a clue what will happen next? I believe they would be quick to say a resounding “no”. In fact, all they, and anyone else, can really say is that the economies of the world are going through an incredible and unstable shift.
No longer can we make the assumptions that once under-girded economic theory and national fiscal policy.
Today, the non-linear nature of this turbulent financial period is becoming more the norm, as markets reel at the latest financial scandal, regulatory blunder or other apocalyptic economic earthquake (example: Google “2012 pension america” and you’ll see what I mean).
So, what to do? Well, if you didn’t yet know this, during the last Great Depression, more millionaires were made (rather, they made themselves) than at any other time in the western world.
Why is this? Simply put: there were some people who understood that the old ways of doing things clearly no longer worked, and they found new ways of achieving the results they wanted.
Spin the clock forward to today, and we have a much larger version of the same basic idea: things have changed in the economic atmosphere. (Let’s push the analogy further, and say that the atmosphere is a new gas).
The biggest single shift that has been occurring over the last 30 years or so is the advent of technology.
For example, did you know, now anyone can learn how to do Forex trading? All you need is some time to learn the skill, some software, and some cash to get started.
And that’s just a tiny, tiny example: think of the number of daily online transactions that occur, if you can. The numbers are simply staggering.
So where does that leave you? Will you have a job in 6 months, or not?
Will you be able to maintain your current standard of living in the face of ever-increasing taxation that is the fallout of the government bailouts?
Do you want to do anything about it or not?
Should you learn how to get to grips with the skills that are needed now, before your job disappears?
Only you can evaluate your answers. But one thing is clear: you can’t afford to ignore what is happening, and hope that it will all go back to how it used to be, because it won’t.
The economic paradigm shift is just revving its engines, and isn’t even off the runway yet.
So make sure you take action, and get educated sooner, rather than later.