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Evening Open Thread: Next wave in the economic collapse? |
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As the old adage goes, when America sneezes, the world catches a cold. And despite the appearance of a multi-polar world, recent rumblings in the world of global finance suggest this saying still holds. Yet, the economic downturn is having effects much wider-reaching than the world of subprime and Bear Stearns.
This week, economists noted the role of rising Asian inflation on the rise in price for a number of products sold in the U.S.. Inflation has been on the rise worldwide, but coupled with troubles in the labor market, rising costs of everyday goods are causing many to cut costs and reduce everyday spending.
Along the same lines as consumer prices, the rising cost of food is also causing worry worldwide. Whether it’s due to rising fuel costs that make transporting goods to the market more costly, or the rise in food-based fuel production, biological blights, climate change, or international conflict, coping with rising food prices worldwide may ultimately be more costly than the failing mortgage market–with several sources citing the potential for rising food prices to create security concerns.
This economic downturn hasn’t taken its last dive yet. Where will the next wave of the world’s economic woes strike?
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