Good article. I recommend reading the entire piece.
"the next crash will likely be worse than 2000 and 2008 combined."
May 29, 2012, 12:03 a.m. EDT
America’s new 'Age of Austerity' starts now
A new era is nigh, and denials will only deepen its impact.
Denials, delays will deepen the impact
Paul B. Farrell
SAN LUIS OBISPO, Calif. (MarketWatch) — Warning, tighten your belts, America’s new Age of Austerity is already here, today. There I said it. I admit it. And you better too. Prepare now. Could be like the 1930s depression austerity.
You’ve seen the warnings all across the major newspapers about a global slowdown. But why no warnings of austerity dead ahead? Why? America’s still deep in denial. We prefer happy talk to the truth. No, nobody will get honest about austerity till after the elections. Then it’ll hit hard.
Wake up. You were warned: America’s new Age of Austerity is already here.
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Listen to the latest warnings just last week:
o Wall Street Journal warns “New Signs of a Global Slowdown … Weak reports in U.S., Europe and China suggest economies are slipping in sync.” Yes, a global economic slowdown is “in sync.” Not just a typical summer market dip. Not even a double-dip recession. But a dark long scenario we’ve all been fearing. And with it, deep, dark austerity.
o Los Angeles Times warns: “Europe’s woes put drag on world growth … even powerhouse Germany may be faltering.” Not just the euro zone, “but reports of economic trouble are turning up in China, India, South Africa, Brazil and elsewhere.” Austerity is here.
o New York Times headline fans the flames of a metastasizing global contagion: “China’s Output Slows Sharply: Ripples Feared. Nationwide real estate downturn, stalling exports and declining consumer confidence.” Yet China was totally predictable. A few months ago our headline read: “World Bank warns: China is a ticking time bomb.” Now, kaboom.
o Foreign Policy: Yes, austerity’s coming, and maybe with it, a new president: “Five World Events That Could Swing the U.S. Election” headlined the latest Foreign Policy. And any one could also totally alter the trajectory of a economic slowdown or recovery. Polls show jobs and the economy are the “most important issue for them in choosing a president.” But those five global “events” could send the economy and the election “careening along a very different path than the one it’s traveling down today: Iranian showdown; European nose dive; Chinese economic slowdown; domestic terrorist attack; and an “Unknown Unknown,” an unpredictable Black Swan killer.
Austerity is so predictable, so obvious, yet we chose hype and denial.
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o BusinessWeek: “It’s as if 2008 never happened,” warned a BusinessWeek editorial last year. Why? So predictable from a market cycle perspective. Truth is, another meltdown is a natural, welcomed and essential part of the cycle, in order to complete what the 2008 meltdown triggered — 2008 failed to reform Wall Street. And since necessary corrective action did not happen, the next crash will likely be worse than 2000 and 2008 combined.
More: http://www.marketwatch.com/story/warning-americas-new-age-of-austerity-starts-now-2012-05-29
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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