World Economy Hanging By A Thread
It’s not just the U.S. economy that is throttling growth back to stall speed but the global economy as a whole. One of the most powerful big picture concepts that has taken place over the last decade is globalization, the interconnectedness of the world economy, and right now it’s skating on thin ice. While the U.S. may have been the fire starter with its subprime crisis back in 2007-2008, this time it may be the Euro crisis that pulls the global economy underwater. The heart of the matter in the Eurozone and other developed economies is too much debt relative to their productive output—a situation set to intensify as a slowdown in growth (shrinking economies) exacerbates the debt to gross domestic product (GDP) ratios as it becomes more difficult to service debt with shrinking revenue.
You Go, I Go, We all Go