Southern Methodist University economics professor Batra bases his prediction of a "great depression" around 1990 on a pattern of 30- and 60-year recession-depression cycles in the U.S. dating back to the 1780s. He cites factors leading to the stock market crash of 1929 that also are present today: intense concentration of wealth, a depressed farm economy, heavy speculation, bank vulnerability, protectionist trade sentiment and fiscal corruption. Publishers Weekly.
In the 1980:s I read this book. I thought that the stock market crash 1987 could be the trigger for the Great Depression, that Ravi Batra predicted.
Batra said that there has been a depression every 30 year since 1780. If a depression does not come after 30 years there will be a Great depression after 60 years. The last Great depression came 1930. 1960 there was no depression so a Great depression must come 1990.
Today there has been no depression for 81 years. Will A Super Great depression hit the world next. This is what I am reflecting about.
My basic view is that economic cycles exist. I also believe that Nature's Law, the secret of the Universe written by R.N. Elliott is a fact. No truth meets more general acceptance than that universe is ruled by law.Without law it is self-evident there would be chaos, and where chaos is, nothing is.
Natures Law or the Cosmic Law as I prefer to call it affects everything in universe. How the galaxies move, how our solar system work and what rules our planet The Earth.
Everything living on earth follows the Cosmic Law (CL). Living people makes the stock markets work and the pattern of every stock market index is a graphic example of CL itself.
If you look at a 20 year chart of the Dow, you will find the same pattern in a one minute chart. The patterns always are the same during a certain period no matter what time you choose for your chart. What happens in the universe happens on earth at the same time because everything macro and micro has the same pattern. Everything follows the Cosmic law and everything is part of the whole. The galaxies does not make or force anything to happen on earth - we are just part of the same system.
If Ravi Batra is correct in his book that depressions have come every 30 year since 1780 and when no depression came after 30 years there was a Great depression after 60 years what would a depression look like if there has not been one for 81 years?
My view is that 1960 and 1990 we could handle the economy so no depression came. Of course depressions have not stopped to exist. The longer it takes for a depression to come the worse it will be. The current economic situation in the world could be the beginning of what I call a Super Great Depression. All the ingredients are in.
I think that the stock market crash of 2007-2009 could have resulted in a depression but the world governments stopped it by cash injections. I also think that the current world economic situation with enormous debt everywhere will be the trigger for that depression and that the current euro crisis might be blamed by historians to have started it all.
