Could It Get Worse Than 2008? We’ve Got Over 50% Of The Global GDP (China, The EU, And The US) In Recession, Combined With Europe’s Banking And Sovereign Crisis… At The Exact Time That The Fed Appears To Have Run Out Of Ammo
by Phoenix Capital Research
October 31st, 2012
Looking around the economic and financial world today, I see countless negative developments and virtually no positive developments to speak of.
Just off the cuff, I note that:
China is entering a hard landing if not an outright economic collapse.
Europe is facing a recession, banking collapse, sovereign crisis, and a potential break-up.
The US is in a stagflationary recession.
Japan is in a sovereign debt crisis, approaching armed conflict with China
Inflationary pressures are increasing worldwide: new record food prices will hit within the next 12 months.
The risk of armed conflict is increasing in the Middle East as well as Asia along with food inflation creating civil unrest/ riots.
Against this backdrop, the one remotely positive development as far as the markets are concerned is the belief that Central banks will somehow solve these problems via endless liquidity.
However, even this is now proving to be a false premise.
The problem with this is that the primary driver of stock prices over the last three years has been the anticipation of more monetary stimulus from Central Banks.