The world economy is experiencing an alarming state of calm before a potentially violent storm. The IMF has warned of significant stability risks associated with the economic slowdown in China and the crisis in the emerging markets, the newspaper reported.
“We are witnessing a classic emerging markets’ crisis, which is [currently] forming,” the article said. Continue reading
There is an unmistakeable sense among Western decision-makers of power slipping away.
It’s not an argument about American abstention or decline, although that plays into it for some critics of the Obama administration.
It is more to do with the exhaustion – moral, political and economic – of nations that have been in the forefront of the international security business, and the vibrant ascendancy of some other players. Continue reading
Regardless of who wins the election, America faces some tough decisions.
Challenge 1: Can you conceptualize $1 trillion?
Challenge 2: America’s massive debt
Challenge 3: America’s uncontrollable welfare dependency
Challenge 4: America’s banking system is shot.
Challenge 5: The jobs are gone forever.
Challenge 6: America’s education system is failing.
Challenge 7: The economic cost of America’s moral slide.
Regardless of who America chooses at the ballot box, its moral slide will not be turned. At best, it can be slowed. There are 230-plus years of U.S. history that prove it.
America’s debt, its welfare mentality, its crumbling education system and morals are all the product of America’s collective choices. We are now eating the fruit of those choices. Economic indicators suggest another economic downturn has already started. A greater economic depression is on the way, and there is little that can be done to mitigate it.
America is past the point of no return. America’s past prosperity will not return until the whole economic system has been wiped out. Tough times are coming on America, but once through, the country will be able to start anew.
Full article: 7 Reasons This Election Doesn’t Matter (The Trumpet)
Spain’s jobs-scarce economy plunged back into recession in the first quarter of 2012 as employment slumped even further, the Bank of Spain said Monday.
Barely two years after emerging from the last downturn, Spain slid into recession again with two consecutive quarters of economic contraction, the central bank said in a report.
Full article: Spain’s economy plunges into recession (Channel New Asia)
Most people don’t even realize we have an actual war being fought — one that has been ongoing for over a decade. Most people also believe that our economic downturn is part of the usual economic cycle and will return to normal. This couldn’t be farther from the truth. Fact of the matter is, the US Dollar’s days are numbered and America is doing very little to defend it.
In late 2008, when the U.S. Treasury bond seemed the safest investment in the world and the dollar once again reigned supreme as a safe haven, we predicted a Phase Three attack. At the time, we said that the way things would play out, so-called experts would say that it was just a natural and inevitable result of global events. Never mind that these would be the same people who dismissed the concern only a short while earlier. We have documented all of this repeatedly in our final report for DoD (Economic Warfare: Risks and Responses published in June 2009), our book Secret Weapon (www.secretweapon.org) and in this Blog. We explained well in advance that the BRIC nations would call for the end of the dollar as reserve currency, piling on to similar expressions from the IMF and UN. We stated without hesitation that the US Treasury would lose Triple-A status even as Timothy Geithner said it could never happen.
Now, the alarm bells are ringing louder than ever before. But, the policymakers are ignoring the handwriting on the wall, lulled into complacency by lower interest rates paid by our Treasury. Let’s be clear. This is not an “all clear.” Just today, we received some powerful research by Citigroup titled The “Frozen Hell” of a High Deficit, Low Rate Environment. Here are some of the insights that support our concerns:
“As was the case for a decade in Greece, low government bond yields delayed recognition of a problem. The effects on investment spending, employment and income never produced are more difficult to measure than any obvious interest rate spike related to large deficit
Greece’s budget and external imbalances went undisciplined by markets for a full decade. For how long could the U.S.?”
Full article: The Death of the Dollar (Kevin Freeman / Global Economic Warfare)