US Action News

“This is exactly the description of what happened in the 1930s, and what followed is not something we are looking forward to.”

Could it spread? To the US?

The easiest way to deal with a debt spiral is to let it keep going and going. That is what the United States has done. Sure, “kicking the can down the road” makes the crisis much worse in the long run, but bringing the pain into the present is not a lot of fun either.

“I think the periphery goes into depression. When you look at a country like Greece, it’s now been in recession for three years. GDP is probably down 15% from the top. The stock market is down 90%, which is the equivalent of 1929 to 1932 in the US. This is depression-like. – Business Insider

Markets may rally on certain short-term fixes or good news, but until some resolution comes to the mountainous sovereign debt, no rally will last. QE3 is already underway if you look at the huge jump up of M2 money supply since August. By EconMatters Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy. from Singapore with Susan Li on Bloomberg Television’s “First Up” on Monday 29 Nov. Rogers also comments on Europe’s sovereign debt crisis, Federal Reserve monetary […]

The euro’s time is almost up – so says one of the big three credit rating agencies as it prepares for a mass eurozone debt downgrade. S&P’s announcement shook international markets, with investors cutting and running on European holdings. ­Especially worrying for them this time is that even Germany, seen as the EU’s backbone, is not being spared. Standard & Poor’s justified its decision by pointing out the bloc’s consistent failure to stem its debts, even as nations saw their […]

The euro’s time is almost up – so says one of the big three credit rating agencies as it prepares for a mass eurozone debt downgrade. S&P’s announcement shook international markets, with investors cutting and running on European holdings.

“They are in the nuclear blast zone in Europe. They are in it bad. The blast zone of Europe is a nightmare. That’s why their problems could impact us. Europe’s credit crisis is so big it could easily wash up on our shores, easily”

If Italy can’t make it, then there will be a very big crashing sound. It would end up taking out most of the global lenders, a fair number of countries would follow into Italy’s vortex. In my opinion a default by Italy is certain to bring a global depression; one that would take many years to crawl out of.

For the eurozone, the OECD’s predictions are -1% this quarter, and -0.4% next. The group also revised down its forecast for global economic growth to 3.8% this year and 3.4% next year. – BBC