Economist claims world risks Depression if stimuli are not continued!
NEW YORK - November 2, 2009 - The world will slump into a Depression similar to that in the 1930s if stimulus measures are pulled out too soon, Roger Nightingale, economist at Pointon York, told CNBC Monday.
But stock markets are likely to ride the tough times without major problems, as economic activity is better than it was six months or a year ago, Charles Lemonides, Chief Investment Officer at Valueworks LLC, said.
"I think the economy is in a great deal of trouble," Nightingale told Worldwide Exchange. “You must draw a line through the data, and the data hasn't looked good," he said.
The amount of money poured into the economy has not yielded the appropriate response, Nightingale said, despite the fact that factory activity in the euro zone expanded for the first time in 17 months in October.
Manufacturing also rose in Britain and China, suggesting global economic recovery may be underway.
"If this stimulus is reduced at all, if this stimulus in fact can't be continued… then in fact we're going to go into renewed big softness. I think the Chinese are right, the Chinese business secretary, who said he was worried that in fact we are heading for the possibility of another '30s-type Depression," Nightingale said.
Ed. Note: Let the world sink into Depression! Only then can we resurrect national (not global) economies on a solid foundation of sane fiscal management. Only then can we rid ourselves of the trash that is Keynesian debt-based economics and restore to the world pay-as-you-go systems that will last forever.
But stock markets are likely to ride the tough times without major problems, as economic activity is better than it was six months or a year ago, Charles Lemonides, Chief Investment Officer at Valueworks LLC, said.
"I think the economy is in a great deal of trouble," Nightingale told Worldwide Exchange. “You must draw a line through the data, and the data hasn't looked good," he said.
The amount of money poured into the economy has not yielded the appropriate response, Nightingale said, despite the fact that factory activity in the euro zone expanded for the first time in 17 months in October.
Manufacturing also rose in Britain and China, suggesting global economic recovery may be underway.
"If this stimulus is reduced at all, if this stimulus in fact can't be continued… then in fact we're going to go into renewed big softness. I think the Chinese are right, the Chinese business secretary, who said he was worried that in fact we are heading for the possibility of another '30s-type Depression," Nightingale said.
Ed. Note: Let the world sink into Depression! Only then can we resurrect national (not global) economies on a solid foundation of sane fiscal management. Only then can we rid ourselves of the trash that is Keynesian debt-based economics and restore to the world pay-as-you-go systems that will last forever.
