do you think we are heading for a recession , depression or will maintain growth?

i think we are heading for a recession, hearing about the amount of job loss's going on atm in the mining and financial sector , how mates in the building house industry work has slowed to a few days per week. its not looking good.

i think the main reason oil prices have dropped has been the rise of the us dollar to what it was only several months ago. since most oil is traded on us dollars, petro dollars as far as i understand anyhow.. it only seems yesterday that the opec countries where being urge to increase production, yet they haven't reduced production to offset the price plunge from 150 to 44 dollars a barrel...


things looks worse though in america, with deflation going on atm the government are trying to put money into american hands to stimulate the spending, problem as far as i can understand is the average american is eyeballed to dept their equity has vanished from drop of house prices and so they have nothing to borrow on , which leads to the banks with the 700 billion dollar bailout , banks wont lend to each other because of the past dodgey deals of the sub prim market (which coincidently was what pushed house prices up and equity up of the american to borrow on) as well as the current overall situation being so unstable and going back to the negative equity of houses. this is helping to cause deflation.

basically banks are hoarding money atm, so there is no growth but contraction.

with the government forced to print more money to increase the flow of money and counterbalance the deflation, they are running the risk sometime down the track of hyperinflation, with the yanky dollar being the worlds currency if the world starts selling off the dollar again as it did from this previous year then the americans are in huge trouble.


whats your thoughts on the situation?