Is recession inevitable?

From the current news there is little to cheer up the markets. In the past months, oil producing countries were making big profits due to the unbearable prices paid by non-oil producing countries. Now all countries seem to be in the same boat as they are paying for the economic policies of the countries holding the bulk of the world economy.

It is likely the economic crisis will continue if there are no economic plans by which all should abide to save the world economy from sliding to a disastrous downfall.

The plunge of the financial markets is the result of the climax of the apparent irregularities in their dealings. Money kept changing hands from one bank to another; speculators kept putting all their assets at stakes like crazy gamblers without pausing to look ahead. It was all a mad race to get richer and richer as fast as possible. Anyone was seeking to get richer or the richest overnight.

Markets can redress themselves but not without leaving casualties behind them, especially those who were made redundant or have gone bust due to the current financial crisis.
It’s up to the leaders of the economically big countries to work out the means to stabilize the markets. There is one country, Zimbabwe, which has reached the highest record of inflation. It will be a doomsday for the rest of the world if inflation in the developed countries reaches at least two digits per cent. A disastrous slowdown in these economies will surely have disastrous effect on poor countries that will have to eke out a living, as the so-called rich countries will be fighting not to fall in the abyss of economic difficulties for a considerable time.

Poor people who live in area unaffected by the modern system can’t “make out” what it means to be under recession as they have a day-to-day life. They aren’t under the pressure to make more money to have more means for leisure and access to modern lifestyle.

In poor countries, people don’t have any financial insurance. They don’t make any saving at banks to get a pension in the old age. They depend on the support of their families once they’re old.

However, recession can be turned back if lessons are learnt and effective remedies are quickly found, especially those that will thwart the way for those who make too much speculation in the world of finance at the expense of market stability. The best way to save the economy is that there should be no panic on all sides, reducing confidence in investment and spending which will surely contribute to economic stagnation, with the inevitable results like an increase in poverty and unemployment.

As private individuals can’t print paper money and give it a value, so the market shouldn’t be excessively in the hands of those who make a mess of it. After all the economy isn’t a free game. There should be rules for it to be played safely. It should be like a field with well-marked areas, qualified players and wise referees that ensure that the rules are respected by all.

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