by Tyler Durden
Is the global economic downturn going to accelerate as we roll into the second half of this year? There is turmoil in the Middle East, we are seeing things happen in the bond markets that we have not seen happen in more than 30 years, and much of Europe has already plunged into a full-blown economic depression. Sadly, most Americans will never understand what is happening until financial disaster strikes them personally. As long as they can go to work during the day and eat frozen pizza and watch reality television at night, most of them will consider everything to be just fine.
Unfortunately, the truth is that everything is not fine. The world is becoming increasingly unstable, we are living in the terminal phase of the greatest debt bubble in the history of the planet and the global financial system is even more vulnerable than it was back in 2008. Unfortunately, most people seem to only have a 48 hour attention span at best these days. They don’t have the patience to watch long-term trends develop. And the coming economic collapse is not going to happen all at once. Rather, it is like watching a very, very slow-motion train wreck happen.
The coming economic nightmare is going to unfold over a number of years. Yes, there will be moments of great panic, but mostly it will be a steady decline into economic oblivion. And there are a lot of indications that the second half of this year is not going to be as good as the first half was.
The following are 19 reasons to be deeply concerned about the global economy as we head into the second half of 2013…
#1 The velocity of money in the United States has plunged to an all-time low. It is extremely difficult to have an “economic recovery” if banks are not lending money and people are not spending it…
full article at source:http://www.zerohedge.com/news/2013-07-05/19-reasons-be-deeply-concerned-about-global-economy
austerity (Photo credit: 401(K) 2012)
Five years into an economic depression of epic proportions, one would have thought that the Greek government should be raising serious doubts as to whether the oft-repeated troika recipe of severe fiscal austerity is going to produce any different economic results this time around. And one would also have thought that the time has long since passed for the Greek government to start seriously exploring alternatives to a policy approach that offers the country the bleakest of prospects of many more years of a deepening economic depression and extraordinarily high unemployment.
The U.S. Example
Normally, in the midst of a deep economic slump, countries follow countercyclical policies to extricate themselves from the slump and to avoid a downward deflationary economic spiral. They do so by some combination of fiscal policy stimulus, interest rate reduction, and exchange rate depreciation.
full article at source: http://finance.yahoo.com/blogs/the-exchange/time-greece-bring-back-drachma-173957240.html
- A Plea for Grexit (fairobserver.com)
I picked this off the Independent .i.e. site this morning This is the kind of news most people in employment are now fearing is it any wonder that the consumer is not spending and the more stories we see in the news media like this the more likely this recession will become a spiralling depression .with no leadership coming from our elected members of the Dail people will have to come up with their own solutions
THE OWNER of a toy shop last night defended his decision not to give staff any warning that the store was shutting down at close of business yesterday.
Speaking just before he handed his 17 workers their P45s, Vida Akauskien, who has worked in the shop for the past eight years, said: “I know the country is in an economic crisis but how can they treat people like that?”
Fergal Crinnion said soaring rates and service charges had forced him to put Tommy’s Wonderland at the Blanchardstown Shopping Centre into liquidation.
Mr Crinnion insisted there was nothing underhand about his decision to keep staff in the dark until the last minute saying: “With bad news, when you need to know it, you just need to hear it quickly.”
Shocked staff last night expressed outrage to the Irish Independent after they learned by word of mouth on Friday that the business was being liquidated and their jobs were gone with immediate effect.
Just minutes after the last sale was rung up, the shutters came down and work on removing remaining stock from the shop began. The stock will be transported to a warehouse to be assessed by the liquidator. Workers, some of whom have worked at the shop for over 15 years, will receive statutory redundancy and holiday pay.
full article at http://www.independent.ie/business/irish/staff-devastated-at-sudden-closure-of-shop-2084141.html