Arab World Revolutionary wave: a Pandora Box from which a Monstrous World Depression should emerge

reply to post by The angel of light


The Peace of God to all that belong to the Light,
Dear readers,

The decided attempt of the Islamic brotherhood to try to recover the power today Friday 5th of July in Egypt has produced a lot of terrible incidents along that country, with many injured people and also fatalities.

This is showing that there is a huge internal conflict just starting in Egypt, one that can easy transform this land that was in other time one of the most stable of the Middle east in a civil war scenario, with all the terrible consequences for the world economy, since we could have a imminent closing of the Suez Canal, something that the world has experienced only twice on 1950s, in the Suez Canal war in between England, France and Egypt and in the 1970s six days war.

If this happen in our time, we are going to see a drastic reduction of the supply of petroleum in all the western world, something that will immediately trigger the price of this commodity in all the markets.

Being the Global economy one essentially mounted in a mercantile model where all the products that are traded in the markets must be transported giant distances from the production centers, in far east, to the consumption ones in the west, it is clear that the increase of the Oil prices will release an inflationary wave all around the world, one so strong that can carryout another big recession that if it takes too much long can open the door to a second big depression.

The worst possible scenario is however not the one of the civil war but the one of a fundamentalist Islamic rule starting to control the so strategic Egypt. If the Islamic brotherhood can regain the power that possibility is very real.

Pls read:

Egypt clash in between national guard and Islam brotherhood supporters

news.yahoo.com...

www.bloomberg.com...


Thanks for your attention,

The Angel of Lightness

reply to post by The angel of light


The Peace of God to all that belong to the Light,
Dear Readers,

The great political tension that we have seen along the last weeks in between USA and Syria, due to the supposed use of Chemical weapons from that last country to repress its civil population rebellion, plus the terrible riots in Egypt as consequence of the confrontation of the Islamic brotherhood and the Militaries, has created a so heavy atmosphere that does not look very Ok and it is really so thick to be breathed easily by the economy in America.


Of course the tensions on Syria has fell a lot in the last week, and seems that were in some kind of recess in the not declared civil war that Egypt is experiencing, thanks to the intermediation of the UN and Russia, but any person living in America on these days is every day more conscious of how high are the prices of gasoline, and that is not good at all. We are practically reaching the same levels on the increase of transportation costs that we were experiencing in 2007, and that is alarming.

For me there is no doubt that the great recession was triggered by the inflation caused by the irresponsible speculation on the gasoline prices of 2007, plus the so high costs of the wars in Afghanistan and Iraq, and the incapacity or lack of will of the Bush Administration to cease those conflicts on time and interfere in the internal oil market on time.


I am so impressed to see Obama administration practically not doing nothing to stop this escalation on the gasoline prices. Again, As I warned in 2007, if the Gasoline cost continue in levels we have now, or if it boost even above them, I see clearly that we are going directly to another recession.


A mercantile economy, in other words, the one in which practically nothing is produced in the country but everything is traded from elsewhere, cannot resist this type of uncontrolled increasing trend in costs of transportation, since that impact the entire economy. If the prices of the goods increase without control the demand will be affected negatively and that can create easily the conditions for a new recession.


It is curious to see Obama committing two huge mistakes almost in parallel, trying to push America again to a war, and not controlling at all the prices of gasoline, the two same dramatic errors that Bush did and that drove us to the worst economic crisis since the great depression.


It seems the it is true that old hypothesis that History tends to repeat. Sadly we are watching the repetition of a cycle that many thought that we were never going again to experience anymore, the one that rides our economy toward another major recession.

If the internal demand of products and services starts to constraint, as a result of this new inflationary wave, having also Europe in a huge economic crisis, Great part of Latin America also closed to our products and the far east economies definitively moving around its own offering, there are no many possibilities for the American productive sectors to find other markets to assure the demand they need in order to survive.

Thanks for your attention,


The Angel of Lightness