The economy slowed down earlier this summer across the United States still high unemployment and weak home sales plus a slowdown in manufacturing.
A survey by the Federal Reserve, released Wednesday found that consumers are not spending as much and slow job growth along with lending restrictions hampering growth into the second half of the year. This is the worst statistics this year.
Over past few weeks, Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts and today RIM announces 11 percent layoff (2000 employees) also on the Canadian front Bombardier has cut work forces in their train transportation factories.
Second half of 2011 may not be as rosy as economist think it would be. Going into mid 2012, I think world economy is going towards another recession.
With the northern arctic ice melting scientist has projected by year 2030 all ice will disappear. This essentially will open up the arctic waters for ships from all countries to cross. This brings a whole new set of defense problems for all northern countries such as Canada, Netherlands, Russia and others.
Looking at the facts and figures today, it would seem that the U.S Government and Banks that cause the first great recession back in 2007-2008 have not really learned anything, nor are they doing the right things to prevent the next gigantic crash.
It almost seems that they want to orchestrate a depression. If anything they are making things worse by printing more money and increasing the size of the derivative bubble. Heed my warning, the next crash will be much much bigger and the affects will be all out “Depression” worse than the 1930’s.
This news video was posted roughly a year ago, and looking at today’s numbers, it looks like things have not gotten any better for students. If anything things have gotten worse, the unemployment rate is slowly climbing higher and higher. Corporations are hording trillions in cash with record profits and not hiring workers and all the while student debts are also going much higher.
Politicians only represent the people who bribes them with the most money. It it the same thing in all the so called “Democratic” European countries and the United States. People are angry because citizens tax money have been recklessly spent and their governments lost all tax payers money and gone into huge debt.
This video has some really solid statistics about Canadian peoples debt, the 30% senior citizen’s retiring and the glut of homes that will be entering the market that is going to drive home prices down.
It talks about how corporations has filled peoples head with ideas of a lifestyle that most debt ridden Canadian cannot really afford. This is a must watch, it is a hard look at the reality of things and the coming hardships.
While the American government has been spending wrecklessly the taxpayer’s money for over 30 years, China has been spending it carefully to facilitate growth and amass a surplus. America’s spending is akin to a person addicted to credit card, that goes out and consume on stuff he doesn’t need until he racks up a huge debt that he/she can never pay off.
The United States is the largest debtor nation in the world history, and the 2008 economic crisis is only the first series of crisis. The next economic crisis in late 2012 – 2013 will be bigger and deeper.
The politicians have short term memories and will not do what is necessary to fix the balance sheet, they will continue to kick the can down the road and let the next President to worry about it and this goes on for decades. So, if this is the case I really think the United States is screwed…Big Time!
Canadians now have taken on large amounts of debt and with interest rates so low, home sales presses on. However, it is not just mortgage debt that Canadians have added to their balance sheets, credit card and line of credit debt has been soaring as well. This basically is a recipe for a disaster similar to what happen in the United States running up to 2008 economic crash to happen to Canada in the future.
I’ve been anticipating the U.S stock market decline for a while now and this week the Dow Jones industrial average declined below 12,000.
I believe there is more downside coming in the near future. My initial assumption was that this decline will start near the end of June, however with markets it is always difficult to know when it will actually happen.
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