The term Double-Dip is being used more frequently by reporters and economists concerning the state of the Recession or Depression in the West. What it means is that the Economic Downturn has gone up since it first started, but now appears to be going down again.
We saw a classical example of the Double-Dip during the Great Depression of the 1930’s. As can be seen in this chart, the GDP went down in 1930 then up in 1933 then down again in 1936.
We must remember that nothing in the Universe goes in a straight line. The reason for the absence of straight lines lies in the nature of the Universe. The Universe is made of particles and the particles are made of waves. We see this wherever we look, from Quantum Mechanics to the behavior of stars, planets and plants.
The straight line is an imaginary concept held by the human brain, but absolutely never found in Nature, whether living or non-living. Those people buy something with the hope that it will go straight up forever are always wrong. The item, whether a stock, commodity or currency will follow a trend, which may be up or down, but the path will have waves in it.
In terms of the Western economies, they are trending downwards. The up tic we have just seen is a wave in a downwards trend. The Western economies are going down and they will do so for decades. The Western economies had gone up since the end of the Second World War, and they followed this trend for thirty years! During the latter part of the 1970’s the Western economies started to falter and then fell.
This fall was hidden by an accumulation of debt.
Western economies, especially the U.S. and the Southern European economies began to accumulate billions of dollars of debt.
As I exclaimed in my book Economic Rip Tide, the public sector and the private sector turned to debt to continue their affluent life style.
During this period of time, the owners of factories and large farms began to close down their operations in the U.S. and Europe and re-open in Asia, where labor was cheap and the governments were helpful by assembling the labor and granting tax free incentives. This shift of manufacturing and agriculture has continued to the present day.
The displaced labor was retrained to work in retail and “service sector” jobs.
These jobs are totally useless in a declining economy. Western governments, controlled by big trans-national business supported this transformation from manufacturing and agriculture to “service sector” jobs.
FACING IMPENDING DEBT
After Western business went from manufacturing to service sector to housing construction, and finally to FRAUD the economies of the West collapsed.
Western economies can never repay the debt they have accumulated! At present there is a growing IMPLOSION of debt and unemployment. This will get worse, not better, with time. Like the Great Depression of the 1930’s the economy will continue to contract.
Because the capitalists of the U.S. and Europe want cheap labor across the board, illegal immigration will continue and unemployment will soar.
THE SEA OF LABOR
As the ocean is covered with sea life seeking food, the earth is covered with laborers seeking work. Now that national frontiers have been broken and every government on the planet supports “free trade” there is no hope for the U.S. and Europe.
The Double-Dip will continue for decades until there is parity between East and West in terms of wages, living standards and governmental power.