In Macroeconomics (Analysis of the overall economy) many economists focus on the business cycle. Every country moves in some type of "cycle". A cycle is comprised of two aspects: a period of expansion and a period of contraction. This cycle is found throughout nature. It is similar to a wave or frequency pattern. Each element, cell, virus, bacteria, metal, etc. has a unique wave signature differentiating it from every other substance in the universe.
Why do we have business cycles? During times of expansion, businesses (and countries) add employees, build new buildings and other infrastructure. Expansion evokes a learning curve required to handle the new paradigm. Excesses and waste are generated during expansion. Efficiencies are lost during expansion. People are overworked and pay less attention to detail and/or slough off issues. Why not? We are making our profit targets. Substantial profits during expansion tend to mask the underlying inefficiencies that are developing.
Just as we need a sleep cycle to regroup on a daily basis, the economy needs a cycle of compression. When we "tighten our belts", we rethink our expenditures, our direction, and our decisions. We begin to cut out wastes that surfaced during the expansionary period. In the past, this exercise has been known as zero based budgeting. You start with a clean slate and justify every expenditure. Times of compression cause surpluses to be exposed. Those surpluses must be dealt with. Surpluses can ultimately lead to decay. Decay leads to loss of value. An old product on the shelf is a loss on the books since the demand has moved to other products that replaced the demand for it.
I believe that the various governments have made a critical error in judgment concerning their views on economic expansion. Their quest to eliminate recession cycles in the markets and economy will ultimately fail. Their attempts to sustain an economic growth cycle beyond its natural timeline will only cause an extended compression cycle in length or intensity, or both. Each generation thinks that it is more intelligent than the previous generation only to make the same mistakes again. In man’s quest to control, fear and greed take over the economic controls.
In the BIGGEST of pictures, I believe that we are at a point in time where there will be a major shift of consciousness. I suspect that it will be preceded by a notable economic event and appear catastrophic to the average person. In the Scripture there were several famines. Let’s focus on the the famine during Joseph’s time. OUR HEAVENLY FATHER knew the famine was coming. HE began preparing Joseph about twenty years before the famine. Joseph was about 17 years old when he was began his training program. At the age of 30 he was placed into his manifested calling, second only to Pharaoh. He spent 7 years preparing for the famine in order that mankind would survive the famine and come out on the other side with a new consciousness. These famines were the ultimate examples of compression. Compression always leads to expansion. The previous thinking and assumptions are discarded during a great compression. "Things" lose their importance. Relationships are reestablished as the important aspects of life. The watchword will be "Simplify".
"Blessed are those who live in moderation, for they shall inherit the earth."