What would a recession in the U.S. do to the world economy and to the economy back home?

A U S Recession will have a ripple effect on the world economy. Since we have pretty much become a country of consumers rather then producers we will not be purchasing as many goods from other countries; thus' slowing their economy as well. China and India will probably be hit hardest, with Japan right behind them. If these countries find no markets in the U S for their products and services their economy will slow down and suffer as well. This is true of other countries who depend on the U S purchasing power. One think many countries are doing to protect them self is investing more in the Euro rather then the Dollar. It is a complicated system, but what happens in the U S will definitely ripple all over the world. We can not continue to be consumers, we have to find a way to produce and export more or it is going to cause big time troubles all over. The more the dollar loses in value the more the U S is going to be in trouble, and the more the world as a whole will suffer. I am not trying to be a defeatist, but, in my opinion, this is perhaps one of the biggest problems we are facing as a nation.

A US recession would still hurt market globally as many Asian market and developing market are still heavy exporter to the US. Secondly, due to the current global monetary system of floating exchange, mobility, and volume, a weak US economy can very easily spread to every one else. However, a US recession now would not be as damaging as say 10 years ago as the global economy had started to slowly move away from a US centric model with the EU and Russia leading the way as alternative market, and developing economies providing alternative investment shores. At home, total welfare will certainly drop as the US need to readjust its economy to be more productive and cost effective to stay competitive world wide. This coming recession really isn't something of a surprise, and no matter how bad it will be, the US will become stronger afterward.

the cartel banks are moving their wealth from the u.s. The drop has allowed many countries to demand euros. There are a few more regional currencies coming online in 2010 like the one for the middle east and the bank of international settlements has a plan for a single world currency. The fed(a private cartel group) is shifting it's influence to the wto world bank and imf. The problem has been that there has not been any "MONEY" in nearly 100 years, the u.s. dollar is debt note and not actual money. This has allowed money to be printed to no end and this excessive flood of fake wealth keeps causing rising and falling waves of fake cash flow. This is the actual reason you won't hear much on the news but is a big part of the appeal of ron paul who is the ranking member on the banking committee and time and time again takes the "fed" to task over fake money printing. (check youtube

As a great debtor united states of america, the U. S. will proceed to lose paying for skill because of the fact the dollar devalues. additionally, because of the fact the DOW maintains to drop, traders will commence pulling money out and putting it in securities; that outcomes the capital that agencies ought to make investments or strengthen in all markets because of the fact that maximum companies are international in nature.

I think recession in US could produce:

.- Contraction in economy

.- Reduce in imports

.- Reduce in consumption

.- Reduce in savings

.- Reduce in income in governments and problems for governments' expenditure

.- Reduction in interest rates

.- The effect in exchange rates will be unknown

.- Suicides in Wall Street

The consequence in global economy could be:

.- Broke of poor commercial partner of US (example: China, India)

.- Crisis in rich commercial partner of US

.- Increase in velocity of substitution of USD by Euros

.- Increasing in trade between Euro-Zone-countries

.- New opportunities for new industrialized economies (non sponsored by US, like Brazil)

http://www.marketoracle.co.uk/Article2537.html

I think the world has sufficiently moved away from a US growth driven economy and emerging economies like India and China will generate enough demand to keep the global economy afloat.

Doesn't it suck living in such an insignificant country that you have to worry about us Americans and what we are doing? We don't give a crap about you losers or how bad your economy is. Ha, ha ha!!!