Stagnant and Paralyzed

China s credit binge is turning into a bust.

Afterward, capital flows to developing countries stagnated.

Political, social, and economic life stagnated.

Under two plausible scenarios both concerning China the unwinding of global imbalances could cause regional if not global depression.

Blood stasis syndrome, or blood stagnation (Chinese Xue Yu ) is an important underlying pathology of many disease processes according to traditional Chinese medicine.

We do not think that this points to a double dip recession.

Why Small Booms Cause Big Busts

There are also now two reasons to fear a double dip recession.

Cheap imports ameliorate the effects of wage stagnation.

But the answer is not to let a collapse in the world s car industry fuel a deeper recession.

In fact, China is emerging in reasonably good shape from yet another global slump.

Stagnating official export activity, due in part to the sanctions on timber exports

If that were to happen quickly, total spending could decline, pushing the economy into a double dip recession.

With incomes stagnant, households were encouraged to borrow, especially against home equity, to maintain consumption.

Venous stasis, or venostasis, is a condition of slow blood flow in the veins, usually of the legs.

Yes, an American recession might spill over to the rest of the world and cause a worldwide recession.

The disease is a protracted balance sheet recession that has turned a generation of America s consumers into zombies the economic walking dead.

The global economy was just emerging from the deepest recession in the post World War II period.

In the early 1990 s, Sweden suffered a huge recession precipitated by a housing bubble and a banking crisis.

Slack labor markets with rising unemployment rates will cap wage and labor costs.

The 2008 crisis was followed by a long, hard recession we should not expect a different scenario now.

DAKAR The slump in prices for Africa s natural resources, which led to chronic deficits in the past, has been reversed.

So a lot of economists look at declining population and expect to see stagnation, maybe depression.

The increase in some asset prices may, moreover, lead to a W shaped double dip recession.

The everyday consequence for the middle class is a stagnant paycheck and growing job insecurity.

That will lead to double dip recession, even larger fiscal deficits, and runaway debt.

Right now, the global economy is suffering a grand mal seizure of slack demand and high unemployment.

With middle class incomes in the United States stagnating, Americans could not afford ever more expensive homes.

With the imminent threat of global recession, austerity measures are not the way to correct global imbalances.

Much of the world, especially Europe, but also the slightly less sickly US, remains stuck in a semi slump.

First, the US is experiencing its worst housing recession since the Great Depression, and the slump is not over.

Japan suffered a decade long near depression because of its failure to clean up the banks.

When the International Monetary Fund tried the same formula in East Asia in 1997, downturns became recessions, and recessions became depressions.

Indeed, insofar as the increments are small, the result is likely to be slower productivity growth and a Great Stagnation.

Under pressure from an international lobby, multinational banks stopped investing in South Africa, resulting in economic stagnation.

In 1985 and 1998, Singapore was affected by, respectively, a major economic recession and the Asian economic crisis.

The sub prime crisis in the early summer of 2007 developed first into a financial crisis and ultimately into a recession.

And, yes, there will probably be another rash of financial crises perhaps in Central Europe, which now looks like Asia did before its 1997 crisis.

Yes, the US will experience a decline in income and a sharp rise in unemployment, lowering the rest of the world s exports to the US. But many other parts of the world that still grow.

This is especially true now, given that much of the developed world is in the midst of a painful recession.

That, in turn, allows Gazprom to boost its profitability through price increases, despite stagnant production.

He called those numbers sustainable, contrasting them with low Windows 8 sales which he blamed for a slump in the market.

The spread of bankruptcies triggered a severe credit crunch, which triggered a deep recession and with it a brutal rise in unemployment.

Sluggish economic activity has increased the rate of urban unemployment to an estimated 34 of the labor force.