I thought this was a great article. I was told I should paste the article instead of linking to where I post articles...so I have posted a large portion of it here...in the forum. I did not want to take up the whole page with one post...should I? I did link at the end to my blog...yes...and I have my own commentary on this article as well. Not included here. Anyway! Every day seems to draw more people in...and they are waking up to the reality of hard and fast economic numbers. Austerity Measures for America are predicted by Spring 2011. What does that look like? I am trying to picture myself with a full grown garden producing food...for canning. While hoards of people are starving and can not afford food due to hyper inflation. Of course that means I will need a good guard posted on a producing garden....or perhaps a neighborhood garden effort. Will the government save them again? What do you guys think? As anticipated by LEAP/E2020 last February in the GEAB No. 42, the second half of 2010 is really characterized by a sudden worsening of the crisis marked by the end of the illusion of recovery maintained by Western leaders (1) and the thousands of billions swallowed up by the banks and the economic « stimulation » plans of no lasting effect. The coming months will reveal a simple, yet especially painful reality: the Western economy, and in particular that of the United States (2), never really came out of recession (3). The startling statistics recorded since summer 2009 have only been the short-lived consequences of a massive injection of liquidity into a system which had essentially become insolvent just like the US consumer (4). At the heart of the global systemic crisis since its inception, the United States is, in the coming months, going to demonstrate that it is, once again, in the process of leading the economy and global finances into the « heart of darkness » (5) because it can’t get out of this « Very Great US Depression (6) ». Thus, coming out of the political upheavals of the US elections next November, with growth once again negative, the world will have to face the « Very Serious Breakdown » of the global economic and financial system founded over 60 years ago on the absolute necessity of the US economy never being in a lasting recession. Now the first half of 2011 will dictate that the US economy take an unprecedented dose of austerity plunging the planet into new financial, monetary, economic and social chaos (7). Comparative progress of the CMI (red) and US GDP (green) growth indices (2005 – 2010) - Source: Dshort, 08/26/2010 In this GEAB issue, our team therefore anticipates for the coming months, different aspects of this new development of the crisis, especially the nature of imposed austerity process which will affect the United States, the development of the accursed « inflation / deflation » argument, the actual progress of real US GDP, the strategy of central banks and the direct consequences for Asia and Euroland. As we do every month, we set out our strategic and operational recommendations. And, specially, this GEAB issue offers an excerpt from the new book by Franck Biancheri « The Global Crisis: The Path to the World After - France, Europe and World in the Decade 2010-2020 » : the French version will be published on 7 October next by Editions Anticipolis and the English one later in December. In this issue we have chosen to present an extract of the anticipation concerning the forthcoming austerity which will be imposed on the United States beginning Spring 2011: « Welcome to the United States of Austerity ». « United States – the double whammy: no equity, no jobs » - Correlation of falling property prices and unemployment trends state by state (2006-2009) - Source: FMI / OIT / OsloConference, 07/2010 Much more of this article here.
