Things are going down hill at an accelerated rate.
I'm not necessarily talking about the US or Europe (although the case can be made) but more importantly the emerging markets. Check this out from Reuters.
Economic uncertainty/unrest leads to SERIOUS trouble.
The Arab Spring? The Obama Administration wants the world to believe that it was a democratic uprising. The truth? People were protesting over economic conditions. Young men couldn't find jobs, food prices increased beyond the ability of the average person to afford it and life became hell for the masses. Their answer? They toppled the government. The Islamist took over and concentrated on instituting Islamic Law instead of dealing with the issues that were of concern to the people. Their answer? They put the military back in charge! That was just Egypt but the same issues played out all over the Middle East and parts of Africa.
Now we have that same set of circumstances about to hit India, Africa, Asian countries and S. America.
Shit is about to get real. When internal problems are beyond the ability of govt to handle, scapegoats are sought and external enemies are always a good way to focus the masses.
UPDATE: Judgement day was averted in China by the Chinese govt using a proxy "investor" to save the Shadow Bank that was about to go under...or so the theory goes. Whoever bought the debt is a savior to the market. The world probably dodged the 2nd great depression and most don't even realize it. Shadow Banking continues to be an issue. Even with that, the Dow Jones closed 150 pt down today.
I'm not necessarily talking about the US or Europe (although the case can be made) but more importantly the emerging markets. Check this out from Reuters.
The Federal Reserve's decision to keep trimming its economic stimulus drew fire on Friday as India's central bank chief said Americans should be more attuned to the global impact of their policies, and the IMF called for vigilance given strains in financial markets.Read the entire article but let me be clear.
The push-back came on Fed Chairman Ben Bernanke's last day on the job and two days after the U.S. central bank reduced the pace of its huge asset purchase program. The Fed made the move on Wednesday despite a bruising selloff in emerging markets that was prompted in part by the prospect of less U.S. monetary support.
With the turmoil in currencies and stocks spreading into more emerging markets on Friday, Fed officials, addressing the rout for the first time, offered no hint the sell-off would influence their policy stance unless the U.S. economy were threatened.
But in Mumbai, Reserve Bank of India Governor Raghuram Rajan said the United States "should worry about the effects of its policies on the rest of the world."
Economic uncertainty/unrest leads to SERIOUS trouble.
The Arab Spring? The Obama Administration wants the world to believe that it was a democratic uprising. The truth? People were protesting over economic conditions. Young men couldn't find jobs, food prices increased beyond the ability of the average person to afford it and life became hell for the masses. Their answer? They toppled the government. The Islamist took over and concentrated on instituting Islamic Law instead of dealing with the issues that were of concern to the people. Their answer? They put the military back in charge! That was just Egypt but the same issues played out all over the Middle East and parts of Africa.
Now we have that same set of circumstances about to hit India, Africa, Asian countries and S. America.
Shit is about to get real. When internal problems are beyond the ability of govt to handle, scapegoats are sought and external enemies are always a good way to focus the masses.
UPDATE: Judgement day was averted in China by the Chinese govt using a proxy "investor" to save the Shadow Bank that was about to go under...or so the theory goes. Whoever bought the debt is a savior to the market. The world probably dodged the 2nd great depression and most don't even realize it. Shadow Banking continues to be an issue. Even with that, the Dow Jones closed 150 pt down today.
