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Wednesday, November 16, 2011

Austerity and the 'Planned' Recession

So the other day the San Francisco Fed came out with a report saying our chances of a new recession in the 1st quarter of 2012 are better than 50-50.

More nations in the Eurozone are already starting to slip into recession. Greece never got out - Italy's rolling over, and now Portugal, and maybe Netherlands and Belgium. As the sovereign debt bond sell-off spreads beyond the fringe and is now reaching some of the 'core' Eurozone, the wave of austerity sweeping governments is spreading with it as they scramble to get their budgets in line to hold the Euro together.

Economists across Europe are warning of the recessionary risks that the austerity measures are building. Meanwhile the Supercommittee in Congress is deadlocked which promises another imminent fiscal crisis here as we had in August.

Nobody has a pro-growth agenda, everywhere there is an austerity agenda. A recession appears imminent, and the governments of the advanced economies appear to be doing everything they can to make it happen.

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