Oh dear, a neoliberal’s nightmare
The fact that New Zealand building starts are down over 4.6% month on month may not move you much, but it was an enormous drop given the month before they grew by 1.5%. This isn’t winter-related by the way: the lowest temperature so far has been 12 centigrade.
In Silicone Valley California, the new company failure rate is running at 90%.
Three days ago, Marketwatch reported that the “American middle class is drowning in debt, and this is nobbling the economy”. The best US CEOs could come up with last quarter during research was that “the recovery remains fragile”. (If you don’t count QE, of course, the US is in a slump).
MW’s view is supported by data showing a disappointing level of consumer spending in May.
Revised data show a calamitous drop of nearly 3% in US gdp during Q1 2014.
Business confidence in the EU during Q1 2014 was -3; Q2, it was -4.3.
Chinese company profits are largely down this year, and Beijing admits that a truly historic level of QE has so far had “mixed results”.
Japan’s level of QE is the highest per capita in the world, with Abenomic theory (if one exists) still unable to explain how it’s all going to be paid for. It’s flying start cheered everyone up there, but of course has now (in the face of poor US data) resulted in a higher Yen, which isn’t good news at all. Overnight, CNBC logged an economic growth rate for Japan at 0.5% – well below expectations of 0.9% recorded in a Reuters poll last week.
In Britain, the economic imbalance between services and manufacturing is getting worse rather than better. the Coalition trumpets growth in jobs but the total hours worked are still going down, and over 35% of those “working” would like more hours of work. The con in play here is best exemplified by a surge of 145,000 people described as self-employed. Direct employment in manufacturing is static, and its share of economic output is falling. Meanwhile, the National Debt continues its inexorable rise.
This is reality, 2014. Interconnected globalist banking, bourses and mercantile competition are now deadlocked – trapped in a rabid gamblers’ cockfight of their own making. There is no economic recovery, there will be no rebound, QE has not worked, and the West’s debts get steadily deeper and unsustainable.
Wake up: this is a global depression simply waiting to be noticed.