US Action News

Glenn Beck issues a warning on what is coming in our economy.

A new report by the International Monetary Fund paints a brutally grim picture of the global economic outlook, warning that continued European belt-tightening combined with possible deficit-cutting in the United States could lead to a global double-dip recession.

Nouriel Roubini discussing whether the chances of a double-dip recession have reached perilous levels in the United States.

“A growing level of federal debt would also increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget, and the government would thereby lose its ability to borrow at affordable rates. It is possible that interest rates would rise gradually as investors’ confidence declined, giving legislators advance warning of the worsening situation and sufficient time to make policy choices that could avert a crisis. But as other countries’ experiences show, it is also possible that investors would lose confidence abruptly and interest rates on government debt would rise sharply.” CBO

The word ‘uncertainty’ keeps coming up as a reason why businesses don’t invest and take risk to create jobs. We have two 2,000 plus page bills now that we had to pass ‘to see what they do’. They each create hundreds of new agencies and will generate thousands of new rules, regulation and unknown costs.

The public is skeptical of the Obama administration’s stimulus program and wary of more spending, with more than half saying the deficit is “dangerously out of control.”

Fears that the economic recovery is fizzling grew Thursday after the government and private sector issued weak reports on a number of fronts. Unemployment claims are up, home sales are plunging without government incentives and manufacturing growth is slowing.

We’re still working our way through the mess even as the next (and perhaps final) bubble inflates before us: the government bubble. This will prove the most intractable bubble of all. We have only to look at Europe, and particularly at Greece, to see what’s coming.

As the market slides into correction territory, Roubini said weakness in euro zone countries and a slowdown in the US and other developed countries will make things even more difficult for investors in the months ahead.

“Addressing the country’s fiscal problems will require difficult choices, but postponing them will only make them more difficult,” he warned.