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发帖数: 29846 | 1 State and local governments are broke. Pension plans are unfunded.
Unemployment is as high as ever. Sovereign debt is a problem. The total debt
in the world economy is too high. Entire western world has borrowed
excessive amounts in the last few decades. This is not just the money owed
by governments, but it is the money people and companies borrowed from the
banks. Debt has reached an all time high compared to the GDP of the
countries involved. Perfect storm is coming. Austerity and spending cuts
will be deflationary. Why? Are we still in Kondratieff Winter? Or did it end
with the 2008 crash? What will the Kondratieff Wave bring next?
Since the start of the European sovereign debt debacle, the word “austerity
” has been bandied about a lot.
It wasn’t an everyday word, and may send some people to the dictionary.
Merriam-Webster defines “austerity” this way: enforced or extreme economy.
But even knowing this definition might leave one wondering how “austerity
measures” relate to Europe’s debt crisis. The Associated Press (5/13)
provided this overview:
Austerity has been the main prescription across Europe for dealing with
the continent’s nearly 3-year-old debt crisis, brought on by too much
government spending. But what does it mean for the average European? Imagine
paying sales tax of 23 percent or more. Or having your wages cut by 15
percent. Austerity comes in many forms: higher taxes, fewer state benefits,
more job cuts, working longer until retirement, you name it.
How about America? Will austerity measures be imposed on the world’s
largest economy? Well, a Marketwatch columnist says “America’s new Age of
Austerity is already here…Yes, America is already in a depression.” (5/29)
We agree. In fact, Robert Prechter said as much in the September 2011
Elliott Wave Theorist:
Bulls say the economy is in recovery, albeit a weak one. Bears are
calling for a “double dip” recession, like the back-to-back recessions of
1980 and 1982. But, as is often the case, we disagree with both camps: The
economic contraction of 2007-2009 was not a recession; the respite since
then is not the start of a new economic expansion; and the economy is not
going to have another “dip” into recession. The economy has been sliding
into depression.
The signs of an American austerity are becoming widely visible. And nowhere
is this belt-tightening more evident than in state and local governments.
Recent years have seen a multitude of stories that describe reduced services
. And in the overall economy, we’re seeing a de-leveraging of debt.
Unemployment remains relatively high. Here’s a CNBC headline from today (5/
30):
Sign of the Times: 20,000 Apply for 877 Auto Job Openings
This story about a new automobile plant in Montgomery, Alabama is one of
many like it that feature jobless or under-employed individuals standing in
line.
Above I showed the September 2011 quote from Robert Prechter. Yet he
actually foretold much of what is financially happening today in his 2002
book Conquer the Crash.
That’s right. Ten years ago, he described what this age of austerity would
look like. Much of what he described looks just like what is going on today.
But how about the rest of what’s described in Conquer the Crash?
Yes, there’s more. You see, Prechter pointed out much more than what
unfolded in the 2007-2009 financial crisis. Do yourself the biggest of
favors and learn what he has to say. Be one of the few who are prepared vs.
the majority who will be caught off-guard.
How? Right now, Elliott Wave International is offering a special FREE report
with 8 lessons from Conquer the Crash to help you prepare for your
financial future.
In this 42-page report, you’ll get valuable lessons on:
What to do with your pension plan
How to identify a safe haven (a safe place for your family)
What should you do if you run a business
Calling in loans and paying off debt
Should you rely on the government to protect you?
Money, Credit and the Federal Reserve Banking System
Can the Fed Stop Deflation?
A Short List of Imperative Do’s and Don’ts
It’s not too late to prepare yourself for what’s ahead |
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