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Paul Krugman Believes We Are in a Massive Global Depression

According to Paul Krugman who recently wrote in the Wall St Journal's Business Economic Forum that the economic decline, and international trade declination is much greater than during the Great Depression, and that we are not seeing any increase of GDP globally in fact just the opposite we are still seeing massive declines. In fact it appears the global economy is shrinking at a massive rate not see in the last 150 years.

“When it comes to international trade, actually it’s not the Great Depression, it’s worse,” he said, presenting charts showing the decline in global trade activity falling much more steeply in the current downturn than during the Depression.

“The scale of the collapse of world trade has been so large that it has produced a degree of international linkage that surpasses what even the pessimists imagined,” he said. “World trade acted as a transmission mechanism,” spreading economic distress “even to those countries that had relatively healthy financial systems,” such as Germany.

“We really are one world economy in a way that has never been true before,” he said.

Source: Wall St Journal

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