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World-wide Economic Issues

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  • World-wide Economic Issues

    Romanian Government Collapses

    BUCHAREST, Romania (AP) -- Romania's government fell Friday in a no-confidence vote, as opposition parties seized on widespread public anger over biting austerity measures and corruption. The Czech government survived a similar vote.
    Thousands of people have protested in both countries in recent months, calling for their governments to abandon the belt-tightening measures and resign in some of the biggest rallies seen since the overthrow of communism in 1989.
    In Bucharest, some 235 lawmakers voted against Prime Minister Mihai Razvan Ungureanu, four more votes than needed. Romania's national currency, the leu, fell close to an all-time low on the news.

    Spain is likely not too far behind

    MADRID (AP) -- The hole in Spain's economy is getting deeper.
    The government reported Friday that unemployment rose to 24.4 percent in the first quarter - compared with 22.9 percent in the fourth quarter - and that more than half of Spaniards under 25 are now without jobs.

    The bleak employment came one day after ratings agency Standard & Poor's downgraded the country's debt.
    The Spanish economy is in recession for the second time in three years as the damage from a housing bust persists. Foreclosures are rising, Spain's banks are in worse financial shape and the government's deficit is hitting worrisome levels.

    All of Europe, really, is in trouble

    WASHINGTON -- The economic situation in Europe -- which many observers believe will have a significant impact on whether President Obama will be reelected -- is increasingly grim.
    Spain, Italy and Greece are struggling anew. The Dutch government collapsed Monday after they were unable to agree on an austerity package. Financial markets are closely watching the French presidential elections, anxious that if Socialist candidate Francois Hollande unseats President Nicolas Sarkozy on May 6, he will follow through on promises to increase federal spending despite a massive public debt and will seek to reduce deficits with huge tax increases on the wealthiest taxpayers.
    And voters across the eurozone are angry about the lack of economic growth, despite cuts to government benefits and jobs.

    Personal Comments: Why haven't I heard this in the mainstream media -or even Fox News, The Blaze, or Drudge? The Netherlands is close to collapse as well. I'm sick and tired of NO ONE telling us what is going on.

    Did anyone hear about the recent US Credit downgrade?

  • #2
    Hopefully the US is going to experience its own version of a no-confidence vote come November by FIRING Barack Obama.


    • #3
      If we don't, America will start to look like Argentina under Juan Peron, and you won't have to hear about it in the news - you can just look out your window.


      • #4
        Originally posted by Resting View Post

        Personal Comments: Why haven't I heard this in the mainstream media -or even Fox News, The Blaze, or Drudge? The Netherlands is close to collapse as well. I'm sick and tired of NO ONE telling us what is going on.

        Did anyone hear about the recent US Credit downgrade?
        Good post. But I want to first say, anyone who thinks a new President is gonna fix the US economy is deluded and has little understanding of what is going on in the world economy during these tumultuous times. No country is any longer isolated from the global economy and without a rich source of valuable exportable resources that other countries seek and buy up, that given country is bound to continued deterioration. The US is only seeing growth at the expense of trillion dollar annual deficits otherwise the country would be Greece right now. The smaller-than-expected GDP print of 2.2 per cent for the first quarter 2012 is indicative of this - the biggest contributor was consumer spending possibly buoyed by warmer than usual weather and data revealing a drop in savings (and likely credit spending). Conversely Australia is only doing well because we have a mineral resources boom, of which without, this country would be in significant recession, despite all the political rubbish that comes out of Canberra from either side. Most countries around the world now are looking to China as the last great economic hope for the most part. And China has some serious underlying problems of their own as well.

        Yes we noted the US down-grade by Egan Jones and I understand they might be in a bit of hot water currently with some government or other seeking to sue the agency. Not sure of the details of that though.

        OP I've likewise noticed very blatant under-reporting of dire economic issues since the beginning of 2012. It just seemed to suddenly drop of the MSM radar. A lot of it was due to the calm falling over their markets thanks to the European Central Bank stepping in and purchasing government debt en masse, though it was adamant it wouldn't be the lender of last resort. Sorry but market forces actually forced their hand. Just like it is everywhere else around the world with increasingly fewer exceptions.

        Though there are a few articles here and there, anyone would think conditions are improving when in fact the data is revealing continued economic deterioration. Europe in particular is a mess and some of their recent political events have poignantly indicated such. The Dutch government has also succumbed to collapse this last week. Extreme political parties in Europe are beginning to find popularity again, not seen since the 1930s, and we all know where that headed.

        Rest assured the next big financial and economic event will be worse than Lehmans in 2008, and governments and central banks will not have the policy tools and resources to arrest its demise and collapse.

        Personally I look to Jesus coming and our gathering together to be with Him in the air and so we will forever be with the Lord (Luke 21:28 ; 1 Thessalonians 4:17).

        Luke 21:28

        "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"


        • #5
          So true, $teve. Those who keep an eye on economic news have to be scratching their heads wondering where all of the reporting has gone. Except, of course, those who have every intention of minimizing at all possible costs the stark economic reality of the world.

          My own theory as to where all of the reporters have gone: Florida - to cover the Zimmerman-Martin case, such as it is. And to Washington to highlight the fake economic recovery here in the US, not to mention the upcoming presidential race (between Obama and Obama-lite). In short - anywhere but there.

          Sadly, Americans have been trained to believe what 'they' tell us. Some are awake, others are not.

          In the end, of course, God's Will will be done - and for His Glory. Keeping this perspective is what keeps me going these days. I just need to remember that God is in complete control of what is going on here - and we get to watch Him in action!

          My emotions: Thrilled, Amazed, and I will admit a little bit scared...

          I know we are all in His capable hands. It's becoming more and more difficult to wait for His return!


          • #6
            I gave up on fox news this year, they are msm with a conservative slant.
            No one is telling the public what is going on with the economy/jobs.

            I get my news from the net and then try to sift through to get what seems true.


            • #7
              Here's a couple of articles that show the state of the world-wide economy....

              ILO warns global employment situation is 'alarming'

              The International Labour Organization (ILO) has warned that the global employment situation is "alarming" and unlikely to improve soon.

              The agency said that austerity measures, especially in advanced economies, were hurting job creation.

              The ILO said the situation was likely to get worse amid slowing global growth and more people entering the workforce.

              High unemployment has been a concern in the US and other major economies and has hurt the global economic recovery.

              "It is unlikely that the world economy will grow at a sufficient pace over the next couple of years to both close the existing jobs deficit and provide employment for the more than 80 million people expected to enter the labour market during this period," the agency said in its latest report.

              We Are in Age of 'Late Great Depression': Shiller

              The world is in a state of “late Great Depression,” well-known economist and author Robert Shiller told CNBC Monday.

              The Yale economics professor, who helped devise the Case-Shiller index for housing market trends and famously called the dotcom bubble of the early 2000s and the housing market bubble later in the decade, told “Squawk Box Europe” that the world is in a “new age of austerity.”

              Spain 'in huge crisis' as unemployment hits record levels

              Spanish leaders warned that their country is mired in a "crisis of huge proportions" as the government reeled from the latest downgrade of its credit rating and was faced with record unemployment.

              The unemployment rate in the eurozone's fourth largest economy hit 24.4pc, the highest in the industrialised world, in the first quarter of this year, signalling that one-in-four Spaniards is out of work. Among under-25s the rate climbed to 52pc.

              At least 1.7m households now have no wage earner, an increase of almost 10pc since the start of the year.

              Retail figures for March, meanwhile, showed sales fell for a 21st consecutive month, as the country's deep recession bit down on consumer spending.

              "The figures are terrible for everyone and terrible for the government,"
              said Jose Manuel Garcia-Margallo, the foreign minister. "Spain is in a crisis of huge proportions."

              The gloomy figures piled pressure on Madrid after Spain's government debt was downgraded by Standard and Poor's (S&P), one of the triumvirate of global credit rating agencies. The country's rating was cut Thursday night by two notches from A to "BBB+" with a negative outlook, reflecting a loss of confidence in its abilities to shoulder its national debts.

              Luke 21:28

              "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"


              • #8
                Yes... At some point (soon) the world is in for some nasty financial weather, however the US Stock Markets are fine... So the US GOV would lead the sheeple to believe we have nothing to worry about. One day soon it will all come crashing down hard. I enjoyed the latest Nearing Midnight articles by Todd (Economy) and Terry (China's Patience). Worth the read. I have to ask are American Stock Buyers greedy massive risk takers or are they oblivious to what is happening in the world? Most people in the USA have a 401K of some type, so we do not want to see a major crash, however it will come soon, so what to do?

                The austerity measures and near collapse in countries like UK, France, Spain and Italy are bringing the socialists out in droves... 25% Unemployment in Spain? (1.7 Million families without a wage earner?) Where will they turn??? You guessed it to, to socialist reform, where the Gov takes care of the people. It will all lead to the entry of that son of perdition...
                The LORD is my shepherd; I shall not want. He maketh me to lie down in green pastures: he leadeth me beside the still waters. He restoreth my soul: he leadeth me in the paths of righteousness for his name's sake. Yea, though I walk through the valley of the shadow of death, I will fear no evil: for thou art with me.... Living for Jesus - Listening for the Trumpet


                • #9
                  I love the thread. Nice OP and great comments. No doubt the stock market is a false flag indicator on the health of our economy. Oh the shock that is coming to an unsuspecting world...hmmm, kind of like the great flood during Noah's day.

                  It is not too late to get on the Ark. Trust Jesus as your Savior. Romans 10:9
                  Jesus is coming now at "Any Moment"! Are you ready?

                  Romans 10:9 That if you confess with your mouth, "Jesus is Lord," and believe in your heart that God raised him from the dead, you will be saved.

                  Praying for the Peace of Jerusalem. Amen.


                  • #10
                    WOW. What?! Thanks for posting these articles...would have never known....


                    • #11
                      The fact that the stock markets are less than 10% from their all-time highs have many lulled into a false sense of security. Many continue to keep all their retirement nest eggs in risky stock and bond funds instead of relatively safe money market funds. Give the wheel another spin and put it all on RED this time. Little do they know, or want to admit, that the Feds have their finger on the wheel. Always did. Always will.


                      • #12
                        I know Peter Schiff is a popular bear but anyway, this is what he told CNBC (who incidentally are also in a bit of trouble so probably looking for some gloom and doom stories to boost their ratings):

                        US Treasurys Are ‘Junk’, Dollar Headed for Collapse: Schiff

                        The greenback and the U.S. bond market are headed for a collapse as the Federal Reserve loses the ability to service the nation’s debt with “artificially low” interest rates, Peter Schiff, CEO of Euro Pacific Capital told CNBC on Wednesday.

                        “As far as I am concerned, U.S. Treasurys are junk bonds,” Schiff said on CNBC Asia’s “Squawk Box”. “And the only reason that the U.S. government can pay the interest on the debt, and I say ‘pay’ in quotes because we never pay our bills. We borrow the money so we pretend to pay, but the only reason we can do it is because the Fed has got interest rates so artificially low.”

                        The Fed has been keeping rates on benchmark 10-year Treasurys low by purchasing bonds via quantitative easing (QE), and this will ultimately be the U.S. economy’s “undoing”, Schiff said.

                        “Unfortunately, we are going to get more QE than Rocky movies, because the only thing keeping this phony economy going is this QE. And the minute you take it away, it’s going to collapse,” he said.

                        Schiff’s comments come after two Fed officials warned on Tuesday that the U.S. could be heading for a "fiscal cliff" at the end of the year if mandated tax increases and spending cuts are implemented. On the same day, fund manager Bill Gross, who runs the world’s biggest bond fund, told CNBC that the U.S. will face a downgrade of its ‘AAA’ debt rating if it did not fix its fiscal situation.

                        “It’s not just $15 trillion in terms of current debt,” Gross said on CNBC’s “Street Signs”. “It’s probably 3 to 4 times that in terms of Medicare, Medicaid, of Social Security, in terms of the present value.”

                        “So unless the U.S. begins to make some inroads, and that's called the structural deficit that the CBO (Congressional Budget Office) and the IMF (International Monetary Fund) basically identified as perhaps 6 to 7 to 8 percent, greater than any country other than Japan and the U.K. Until we address that structural deficit, then yes, we're headed to double-A territory,” he said.


                        Luke 21:28

                        "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"


                        • #13
                          Euro-zone unemployment hits new euro-era high

                          The seasonally-adjusted unemployment rate across the 17 nations that use the euro rose to 10.9% in March from 10.8% in February, the European Union statistics agency Eurostat reported Wednesday. The number of unemployed workers across the region rose by 169,000 to a total of 17.365 million, Eurostat said. Both figures are the highest seen since the launch of the euro in January 1999, said Howard Archer, chief European economist at IHS Global Insight in London. "It now looks odds-on that the euro-zone unemployment rate will move appreciably above 11% over the coming months with an ever growing danger that it will reach 11.5%," Archer said, in a note.

                          Euro zone manufacturing downturn deepens in April - PMI

                          The euro zone's manufacturing sector slipped further into decline last month as a downturn that started in the periphery appears to be taking root among core members France and Germany, a survey showed on Wednesday.

                          Manufacturers in the euro zone cut workers at the fastest pace in more than two years in April after new orders fell for the 11th straight month, suggesting a gloomy outlook for t he sector, which drove a large part of the bloc's recovery from the last recession.

                          Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI) dropped to 45.9 from 47.7 in March, slightly below a preliminary reading and marking its lowest reading since June 2009.

                          It has been below the 50 mark that divides growth from contraction for nine months.

                          “Manufacturing in the euro zone took a further lurch deeper into a new recession in April," said Chris Williamson, chief economist at data compiler Markit.

                          The PMI's output sub-index slumped to 46.1 from March's 48.7 and below a flash reading of 46.4, chalking up a five-month low.

                          Earlier data from Germany, Europe's largest economy, showed its manufacturing sector contracted for a second successive month in April and it was a similar picture in neighbouring France.

                          In Italy, the bloc's third-largest economy, the sector contracted for the ninth month while in Spain, facing deep government spending cuts in an uphill battle to trim the public deficit, activity declined at the fastest pace since June 2009.

                          German manufacturing output showed a renewed decline, attributed by many firms to weak demand from southern Europe. As such, it is hard to see where growth will come from in coming months, unless export demand picks up strongly from countries outside of the euro zone," Williamson said.

                          But that may not happen anytime soon.

                          China's HSBC PMI was below 50 for the sixth month running in April while a purchasing managers' survey for Britain, a major trading partner of the euro zone and which has fallen back into recession, showed UK manufacturing barely expanded last month.

                          Data from the United States though was surprisingly upbeat as the pace of factory growth picked up last month at a faster pace than any of the 74 economists polled by Reuters had predicted.

                          REGION IN RECESSION

                          Only a handful of economies in the 17-member euro zone are still growing and the currency bloc as a whole is expected to languish in a mild recession until the third quarter o f this year, a Reuters poll showed last month.

                          Inflation though is seen dropping back to the European Central Bank's 2 percent target ceiling in the July quarter, which could give the ECB room to support euro zone countries.

                          A Reuters poll taken last week suggests the ECB will restart its government bond-buying programme within the next three months.

                          The ECB reactivated the bond-buying programme last August after a four-month break when Italy and Spain began to get dragged into the eye of the debt storm, but the programme is on hold at the moment.

                          The bank has also pumped more than 1 trillion euros of cheap money into the banking system through two offers of cheap three-year loans and cut interest rates to a record low of 1.0 percent in December to stimulate growth after raising them earlier in the year.

                          Despite the additional stimulus the PMI's euro zone employment index slumped to 47.6 in April, from 48.7 in March, its lowest reading since February 2010 as firms slashed their workforces to contain costs.

                          Luke 21:28

                          "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"


                          • #14
                            While reading this thread a news story popped up on KLOVE noting a "positive economic trend" with the stock market closing so high yesterday.

                            The penitent man kneels before God...and then rolls forward.


                            • #15
                              We are being played.

                              These articles written by Donna Wasson and posted on the RR articles section are FASCINATING - and I am inclined to believe they point to most of the reasons for the state of the world today - economy and otherwise: