Collapse of oil, gold, real estate and stocks with dollar climbing suggest deflation is here and world is headed for a catastrophic depression – 1929-33 all over again?
Specia Correspondent
Jan. 9, 2007

The bubbles in gold, oil (energy), real estate and stocks have busted at the same time. It is rare when all three goes down while dollar climbs and bonds become directionless. It has happened before although very rarely. During 1929-33, gold, oil (energy), real estate and stocks all collapsed and trade tensions escalated.

It seems it is going to happen all over again. Except there is one little difference. American economy is what UK was in 1929-33. The Asian economies are what America was in that period of time.

Simply put, the depression will occur is Asia. The ripple effect will come in America and Europe. The Dow will collapse but not like 1929-33. Japanese Nikkei has collapsed from 46,000 to 10000-16000 ranges already. India and China now will lose the value of its stock market in excess of 80% before all this is over.

The root cause of the global depression is the lack of fuel and fiscal mismanagement in America. The Asian economies are totally dependent on American economy. The dollar strength comes from US consumer buying power. As America falters in economic growth, Asia will sink in deep red. That in turn will have ripple effects in America and Europe.

Collapse of oil, gold, real estate and stocks with dollar climbing suggest deflation is here and world is headed for a catastrophic depression – 1929-33 all over again?
Specia Correspondent
It has happened before although very rarely. During 1929-33, gold, oil (energy), real estate and stocks all collapsed and trade tensions escalated.
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