The Global Economy and Business

Nobody can deny that the world economic system greatly depends on the trends of the US economy. Most economists agree that the financial crisis was caused by the wrong activities of the US financial institutions and US government policy.
So, today it seems that the whole world studies the situation in the US economy trying to find some fact of the recovery. People believe that the same interdependence will take place and the growth of the American market will result in the growth of the international trade , European consumer market and the whole world market.
In this situation the statements of the U.S. Federal Reserve Chairman Ben Bernanke are considered very positive. In particular he said that the recession in the USA was becoming slower and the US government expected to see the first sights of growth somewhere in October-November of this year. He also assured that the government fiscal and monetary policy would continue to stimulate the decreasing of the recession trends.
As for me I’m not a prophet to predict the future but it’s absolutely clear that all that statements are so-called “good news” and for sure they will have a positive impact on the economic trends. I really hope that this would be enough at least to decrease the recession.

One of the leading economic web-analysts - woodwardhall.wordpress.com - has made some interesting and unpleasant at the same time calculations. He has compared the contemporary crisis with the Great Depression in the terms of the biggest economic problem concerning people. Yes, I’m talking about unemployment!

For sure, theoretical economists can ague that statistics differs (now and in 1929). Also they can mention that the accuracy of the numbers in the beginning of the XXth century was lower than we have today. But the main thing regarding unemployment that is completely the same in 1929 and in 2009 says that people have suffered that times and they suffer today as they loose their jobs and their beliefs.

So, returning to numbers I want to show the graph from the mentioned above blog. It shows that the unemployment in March 2009 was the highest “negative tend” since the Great depression. Look yourselves: