Our World is Unraveling: Ongoing Crises Will Worsen In 2013 And Combine Into A Gigantic Crash
November 20th, 2012
2013 U.S. Economic Forecast: Even Without the Fiscal Cliff, A Recession Still Looms
Everyone is worried about the damage the “fiscal cliff” might do to the U.S. economy in 2013, but the reality is that’s only one of the potential problems in our 2013 U.S. Economic Forecast.
At present there appears to be four problems– aside from the fiscal cliff– that could throw the U.S. economy into recession in 2013.
These are international problems that include:
Brewing trouble in Japan: Japan faces an election next month. More importantly, its government debt is currently 230% of GDP, with that ratio rising by about 10% a year. The current government has increased sales tax in 2014, which may cause a recession and will likely push its debt to GDP ratio even higher.
More Woe in Europe: The Eurozone mess continues and is getting worse rather than better. Investors are just beginning to wake up to the fact that France, by exceptionally foolish policies of fleecing the rich, has put itself in a position that may well prove worse than those of Italy or Spain.
Troubles in the BRICs: All four of the BRICs are reaching the end of the road in terms of economic growth. Having had the world’s money thrown at them like confetti, they have used it to grow government and reward themselves through an orgy of corruption.