- Economic Investment HelpPosted 276 days ago
- Economic Turnaround with Absolute Wealth and Guy Cohen’s Updated ProgramPosted 310 days ago
- Economy of OnePosted 310 days ago
- Turnaround TraderPosted 311 days ago
- Online Investors Don’t Need to Be Affected by Every Market Twist and TurnPosted 402 days ago
- Trade with Investment Expertise Using Absolute Wealth’s New ProgramPosted 440 days ago
- Online Investing Program Takes Beginners to Pro Level SuccessPosted 443 days ago
- Stock Markets Don’t Require Luck with the “Trade the Banks” ProgramPosted 447 days ago
- Stock Market Trading Made Easy with “Trade the Banks” from Absolute WealthPosted 450 days ago
- Investment Opportunities Using “Trade the Banks” and Its Advanced IndicatorsPosted 454 days ago
Ready for The Great Global Recession 2.0?
There are other crises that I need to write about, but the whole deal in Europe just has too much impact to ignore for more than a few days…
So what’s the big deal in the euro crisis today?
Today is the day that reality has begun to set in…
Euro Crisis Getting Worse
We should all realize by now that the euro crisis is not getting better; it is, in fact, getting worse. This is not-blood-in-the-water reveling, this is the reality; eventually one must call a spade a spade.
Why go through the same cycle of crisis over and over again?
Euroland leaders convene to find a solution, then declare a solution, the markets rise on the great news, and then fall again as the solution proves to be mere window dressing on a burning house.
Well, the cycle is all but over; European leaders are running out of time, money, and options.
As the battle between France and Germany plays out, there is no real middle ground.
France wants Germany to bail out French banks who bought the euro dream by over-buying PIIGS debt…and are at any moment subject to collapse…
Germany would agree to some sort of bailout—but only if strict fiscal policies—German fiscal rules, really--are followed by all euroland countries.
This has never happened and smack of German dominance over France—something the French will never accept…
And so it will never happen.
And the reality is, the German economy, as strong as it is, is only 27% of the entire eruozone GDP…
It is just not big enough to bail out Italy—17% of eurozone GSP--much less Spain, who is also seeing its borrowing costs rise as investors flee its debt.
So what’s the upshot?
Get ready for the euro crisis to widen—quickly--with more than one sovereign defaults occurring…perhaps even simultaneously.
This may well lead us into a repeat of the global 2008 crisis—but only much, much worse.
Again, this isn’t the outer fringe talking…
In fact, some economists and analysts who have been warning for years about the built in failure of the euro are seeing their predictions come true…
But it’s their other predictions that are even more disturbing.
Bernard Connolly, for example, is a former European Union economist who helped design the framework for the euro. He saw the problems back in 1998, then was fired for exposing the euro’s weaknesses.
For years he has warned that the euro would lead Europe to disaster…
He is one of those euro pessimists whose worries are rapidly becoming hard fact...
“The current policy of lending plus austerity will lead to social unrest,” Mr. Connolly said recently, and predicted that Greece, Italy, Portugal and Spain will not be able to cut spending enough for their economies to recover.
He also pointedly noted that all of those countries have had civil wars, fascist dictatorships, and revolutions in their recent histories, and warned of similar futures if “this malignant lunacy of monetary union is pursued and crushes those countries into the ground.”
Euro Problems Mean US Recession
But how will this affect us on this side of the Atlantic?
Expect the US economy to slide into recession 2012.
But this isn’t just my opinion…it is also the opinion of the San Francisco Fed, who offered this ominous statement:
“The fragile state of the US economy would not easily withstand turbulence coming across the Atlantic. The odds are greater than 50% that we will experience a recession sometime in early 2012.”
The Fed’s opinion is not tabloid fodder, and has a troubling quality of understatement about it…
For a more colorful assessment, the Wall Street Journal says that Barclays Capital expects US unemployment levels to rise to 12% and housing prices to fall another 7%.
Sounds like a blood-in-the-water-scenario for America as well.
But it will not stop there.
As recession hits the eurozone and the US economies, the slowdown will mean a drop in demand for the Chinese economy, and recession will hit there as well.
Global Tensions Rising
This will lead into much more economic conflict, and adversarial trade policies among all players…
There are already whiffs of conflict in the air…
China has already cut exports of rare earth elements critical to their and America’s advanced technology and military products…
And the US has dispatched its navy to Australia as a reminder to China to “play by the rules.”
So spoke President Obama, as he signed a new military agreement to station US marines in Australia.
If this sounds provocative, that’s because it is meant to.
After all, “early 2012” is almost upon us.
And that’s why the euro crisis is such a huge deal; its impact will be felt around the world.
And by the way, with regard to the euro collapse, there is indeed blood in the water…and in the streets of Athens.
Only a miracle will save the European currency and prevent many European countries from sliding into deep recession and mass civil unrest.
The miracle will be if the blood in the water does not end up flowing into the streets of Europe.
And those are…The Gorrie Details.