What actually results when economies collapse?

[stefaan]

Originally Posted by OceanWinds

I am really confused about this. I watched some of the documentaries about currency and the depression in the thirties. But I still dont really understand the whole recession idea.

Recession in itself is a technical term. The moment your economy has zero or less than zero growth, then you can call it a recession.

It could be for instance that because of a climate change, all crops fail, one year after another. Then effectivelly there will be less products in stores.

But most recession start with the contraction of money by the powers the be.
Then the trust in the economy falls down. People buy less. Employers don't take new people on board, instead they lay off people... Economy comes to a halt: recession. Nobody buys nothing, also on the market. Stock markets values plummet.
At that moment, the powers that be, buy up everything they want, for pennies on the dollar.
Then they end the money contraction. Economy starts up again, and everything starts all over again.
They sell it to us as being a natural business cycle. But there's nothing natural about it. It's just a genious way of sowing and harvesting on the back of the common public.