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Worldwide deflation and emerging country depression will take stocks, gold and oil to historic lows
Karen Zuba
Mar. 6, 2007
The emerging economies are collapsing and their stock markets are in free fall. The bubbles that formed in these emerging economies were so big that the burst of the same took months. High interest credit card debt have skyrocketed from almost none a decade back in China and India. People in these emerging country economies just cannot pay the high interest credit card debt.
The net result is deflation. High interest credit cards and relentless borrowing have created the world kind of deflation. China, for example, requires twenty five million new jobs every year to sustain its present growth. As American and Euro Zone economies experience deep recession, the export oriented Chinese growth sector is unable to create new jobs.
The Chinese politicians finally are taking steps to close the gaps between the rich Sanghai class and the poor in China. The effect is deep deflation. Worldwide deflation is also coming from free falling real estate market in America.
Worldwide deflation and emerging country depression will take stocks, gold and oil to historic lows.
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