Far too often, we spend our time talking about things that are just not true. The fact of the matter is that we are not in a recession, but a depression. And believe it or not but things are much worse then what the great depression was. We aren’t just in a great depression, we are in the greatest depression. Ever.
Right now, there are countless countries the world over that are claiming that they are in a recession. But the fact is that you have to have a recovery in order to go into a recession. Otherwise what are you in a recession from?
Here are just a few of the countries out there that are claiming to be in a recession. Russia, Canada, Brazil and most of South America. Brazil just happens to be the 7th largest country on the planet and they are a wreck right now. Believe it or not but Brazil’s inflation has surged passed 10%.
Brazil’s president is battling scandal and low poll numbers, inflation and unemployment are soaring, and ratings agencies are taking the knife to its credit rating. Is there any good news investors can count on from Latin America’s largest economy?
There are some bright spots, analysts say. Yet for now, the immediate term outlook is overwhelmingly grim for the country that put the ‘B’ in the acronym BRICS — shorthand for the most attractive emerging market economies investors once considered a sure bet.
As Brazilian president Dilma Rousseff combats a slumping economy and corruption accusations, the country’s inflation surged above 10 percent while unemployment jumped to 7.9 percent, according to the latest official data. The dour state of affairs has Barclays forecasting a 4 percent economic contraction this year, followed by 3.3 percent shrinkage next year, the investment bank said in a research note last week.
That is just incredible the news that is coming out of Brazil right now. Can you imagine inflation being 10% right here in the good Ole U.S.A? I don’t even want to think about numbers like that. Can you imagine what the people are thinking right now in Brazil? But like I said before. This isn’t just happening to Brazil. There are many countries around the world that are experiencing similar situations and that fact is that it is only going to get worse from here.
But in order to see exactly what is going on, we have to take many factors into account. We can’t just look at one country or one economic factor. So let’s look at some of the signs that tell us what is going on right now.
The following is a snapshot from Bloomberg and what it shows is just a complete slide in the index value. It is just shocking.
One of the reasons that this image is so shocking is the fact that we are in the holiday season right now and because of that people everywhere should be out spending their money and buying neat little gadgets to give as presents. On top of that the corporations around the world should be shipping like crazy to get all of the clothes and t.v’s to the stores before Black Friday and Christmas.
But they aren’t. What we are witnessing is a complete collapse of global shipping right now. What this means is that things are really bad right now and that it is only going to get worse from here.
In case anybody has forgotten, we aren’t a manufacturing society anymore. We are a consumer driven society. So when the society isn’t consuming or spending that means we are doing really badly. Most people right now are just trying to make ends meet at home. Sure the gas prices may have gone down a bit but other than that things are still the same. You don’t even have to take my word for it. Just drive down to your local grocery store and spend some time walking around the store comparing prices on everything. It’s not good. I tell you what. I do all the shopping in my household and it kills me every time I have to go to the store and shop. You can’t go in and get out without spending more than $100. It’s just not possible anymore. I was at the store yesterday and a gentleman had purchased 2 blankets for his bed and it was over $100. Now, I saw the blankets and they weren’t anything special. So why did it cost him over $100. That is what I call being raped. We are all being raped everyday but nobody is saying or doing anything about it. So we can see part of the reason why consumers aren’t spending as much. It’s because things are just too expensive these days. You have to decide whether you want to lose an arm or a kidney for what you got. It’s just terrible. And then on top of that many people have lost their jobs or are under employed, so they really can’t afford anything.
So all in all things are bad. But if we the consumers aren’t spending then the manufacturers aren’t going to be making anything and if they stop making anything than they don’t need to buy raw materials to build with. So that continues to hurt everyone. It is just a vicious circle that is going around and around.
As bad as Brazil and other countries have it, there are many other countries that are just imploding right now. But you would never know because nobody is reporting on it.
Have you heard about Greece? How about the Ukraine? Or how about something even closer t home, like Puerto Rico?
I know most people would say that they heard Greece got a bail out and so did the Ukraine and that Puerto Rico would be getting some type of help from the U.S government. But the truth is that these countries and governments are broke. Even if debts are forgiven someone always has to pay the price for it. But no matter how much money you throw at a problem it will never fix it.
In order for our problems to be fixed we have to change how we view the world. We have all been spending more money than we bring in. That means that we are addicted to debt. We have a problem. But nobody is addressing it. So we just keep kicking the can down the road until something stops us from being able to kick it down the road any further.
The question that I have is that , if every one of these countries and more are experiencing such economic problems, how can they ever be saved. What I mean is that how can one country like the U.S that is up to it’s eyeballs in debt rescue another country when it is broke also. The answer is that it can’t.
But although the U.S is broke just like the rest of the world, Washington continues to lie and make up numbers to make people think that everything is okay and that they can do whatever they want. Just like the dollar. In the beginning of the article we found out how bad Brazil is. But what caused Brazil to be in such bad shape? Well, the U.S created plenty of cheap dollars with the Q.E program. And all of that cheap money went to places like Brazil where they got loans denominated in U.S dollars. But since then the U.S dollar has been on the rise which causes countries like Brazil to lose money on the commodities that they sell. This in turn create a problem because these countries are losing money and it takes more of their own money to pay off the debts that are denominated in U.S dollars.
And because the U.S Dollar is increasing in value the FED thinks that is a good sign for them to raise interest rates. But what they don’t realize is that will cause a huge amount of damage to the economy.
What I imagine that they might try and do is raise the interest rate up ever so slightly to be able to claim that they did it and that the economy is ok. But it won’t be. Sometime after the rate raise we will really start to see things fall apart. But that is okay because they will say that it happened after the fact and so was not cause by them. They will blame it on some other force.
The sad truth is that the U.S is tapped out and we should be doing everything in our power to ease the situation but we aren’t. Washington is still going about business as usual and doesn’t seem to care.
At some point someone is going to have to say that we are tapped out and can’t do any more. But who wants to be that person. Who wants to be that guy that tells everyone the party is over? Nobody.
So instead of telling everyone the truth about what is going on, something crazy like the Paris attacks occurs and it distracts everyone from what is truly going on.
Which is the death of a planet.
Years ago when the U.S had experienced the Great Depression, those people must have thought that things were so bad that they could never ever get that bad again. But look at where we are right now. We would see people on the street right now if it weren’t for the food stamp cards that everyone has. But that doesn’t mean the problems aren’t there.
So we should stop beating around the bush and be honest with each other. We aren’t in a recession but in the greatest depression ever.
Wake up America. Before it’s too late.