US Action News

Every facet of global manufacturing is slowing …

Could it be that rich and productive countries are tired of subsidizing social welfare, re-distribution of wealth schemes, failed multiculturalism, and sloth?

That would hurt credit and crimp growth by 4 percentage points next year in Greece, Cyprus, Ireland, Italy, Portugal and Spain, Europe’s periphery. – Bloomberg

The global recession which started in Europe, is strengthening led by further declines in the eurozone.

Farage unleashes a barrage on Europarl leaders who have been attempting to cover the hemorrhaging of the European debt crisis. Every couple of months they announce some supposed fix or bailout which comforts markets while the slide into economic breakdown continues.

Throw in the fact that it seems everybody (governments as well as consumers) is in debt, nobody has any money, credit issues are becoming increasingly burdensome to deficit financing to artificially stimulate growth via the government intervention route, all these factors are forming a perfect storm for the oil market to face some major headwinds for the next 5 years.

It is becoming increasingly clear that the upper crust of the financial world considers a Greek exit from the euro to be “inevitable” and that it also considers much of the rest of southern Europe to be a lost cause. Unfortunately, a financial collapse across southern Europe is also likely to trigger another devastating global recession.

When there are more losses, and there will be, the only way to guarantee banks do not take them, is to have someone else take them, namely taxpayers.

Europe’s demise is actually propping up the US economy. As Obama’s Debt Commission co-chair Erskine Bowles said the US economy is “the best lookin’ horse in the glue factory.”

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