Forget Iran, We’re Facing Much Bigger Crises
Raúl Ilargi Mendoz, The Automatic Earth
“How anyone can believe there is an economic recovery going on out there is beyond me; I really truly and simply don’t get it. And it’s starting to irritate me hugely. I don’t want to name names here yet, but I see people writing on the web who just follow whatever direction the wind seems to blow from, without any critical neuron or opinion of their own. And that irks me. A lot.
Look, if we would be witnessing a true recovery right now, this would be proof that you can you can get out of problems caused by too much debt, with more debt.
Because that is all that has happened over the past few years. Mind you, issuing additional debt MIGHT work, but only if you would see phenomenal economic growth numbers. Well, they ain’t there. Not in the US, not in Europe, not even in China. Note: phenomenal would be 8%, and preferably more than that. We’re looking at 1.5% max, and negative for much of Europe, and that’s if and when we choose to believe official government numbers.
In short: the only reason the S&P briefly went over 1400 recently is that the financial world swallowed up your taxpayer dollars, and those of your kids and grandkids. Not because there’s anything at all in the economy that’s moving upwards.
In fact, I’d say: are you FCUKING kidding? BHP Billiton reports plateauing Chinese iron ore demand, and media only shift their focus once they report it? We’ve been saying for years that China must fall, simply because its money comes from western economies which have no way to go but down.
There are still voices out there, believe it or not, that claim domestic consumption will save the Chinese economy. But domestic consumption is hardly rising, if at all. Just not going to happen. Forget it.”