As early as 2007, there were already signs of an economic downturn in the United States. This resulted in the weakening greenback in the world market while prices for commodities went up. And if conspiracy theorists are to be believed, it is because there are no wars that is keeping the American machinery busy, thus stagnating the economy.

Looking beyond though, all this talk of recession is creating undue vexation within the mainland but also concern among other countries where they depend, if not rely heavily, on the US economy. And for some reason, where the American economy goes, the rest of the world goes as well.

What does this mean? Whatever temporary gains some countries had the past few years might eventually be canceled out if this perceived recession goes on. Is there really a recession? The signs are there. Still, it is a matter of perspective. Some would be more hit than others, but the point is eventually everybody would take a hit. Is this already depression? Some say, not yet, but we are getting there. Others disagree by saying that mainland America is already in that state and unless something happens, things would only get worse while at the same time pulling the rest of the world with it.

Playing conservative at this time, according to some analysts, might prove to be counter-beneficial because the less money there is going around, the worse the situation would get. This somehow conjures of what occurred back in 1929 where The Great Depression left people, for lack of a better term, depressed.

According to some experts though, the situation today is quite different than the one experienced nearly a century ago. Unlike in 1929 where the economy crashed dramatically, the decline is more gradual now. This is akin to the analogy of the frog that died without realizing the bowl of water it was in was being slowly heated.

Far from doomsday, there is still a glimmer of hope. For one, the 2008 US elections is crucial in how the economy shapes up for next year. At the same time, it has unintentionally distracted the real issue at hand although the economy card would play a vital role in the candidates’ campaigns as voting time nears.

In the end, it is fun to be a spectator in these interesting times, although some action should be generated from all sectors to prevent an economic blip turn into a global catastrophic event.