Global Depression Is Coming

A global depression is coming, at least that is the assessment of some. There is evidence and reason to believe that such an outcome is inevitable, although how close it might be before it is officially recognized is difficult to assess.

Depressions are unusual events. There are reasons why:

Depressions are extreme economic conditions that are supposed to be rare, regardless of how loosely they are defined.

No political entity wants to announce anything bad. All economic news is “shaped” and “spun” to provide the best possible interpretation.

Most economists have been corrupted by the political establishment either via direct or indirect payments. Those who have not been include a large number who aspire toward this condition. Thus, the economics profession protects the political profession, often not declaring something that walks funny and quacks a duck.

Depressions have no official definition. All economic slowdowns prior to the 1930s were known as depressions, regardless of the severity. Political correctness or political defensiveness (yes both existed back then) determined that future slowdowns should not be called depressions because of the pain and suffering associated with the Great Depression. The term recession was substituted of economic slowdowns with the term depression reserved for truly big and bad economic events. We are now approaching a full century since the beginning of the Great Depression and nothing since has been officially declared a depression.

As bad as the US economy is (and it is very bad!), Europe is worse, much worse. The Statist motivation to centralize and control everything began in Europe and much earlier than it took hold in the US. Individual European states have advanced the welfare state to beyond what is sustainable. Compounding this problem is Brussels and their absurd notion that there must be a “united states” of Europe. The machinations of trying to maintain the unmaintainable has badly damaged the solvency of both the individual nations and the concept of one Europe.

Goldcore believes that a global repression is coming. Zerohedge calls it a depression. Below are a few quotes pulled from the Goldcore article:

IMF head, Christine Lagarde has said that the slow down now being seen in China and other large emerging markets will cut economic growth globally back to levels last seen during the crisis of 2009. Just this week, we covered the similar starking warning from the BIS, the central bank of central banks, who warned of “major fault lines” in the global financial system and a “global debt bubble.” Right on cue yesterday figures out of “powerhouse” Germany show a dramatic and unexpected decline in economic activity. Imports and exports slumped in the month – with exports slumping 5.2% in August relative to the previous month. At the same time imports into Germany are also faltering with the most recent figures showing a decline of 3.1%. Meanwhile in the UK, there are also signs of a sudden economic slowdown. The Guardian report that service sector businesses ranging from those in finance to restaurants were experiencing salaries pressure while prices charged rose “marginally”. These companies also say that generation of new business was at its slowest pace since April 2013.

Will a depression be declared shortly? Not likely. It is politically unpalatable to tell the truth when it reflects badly on the politicians (or their court jesters, the economists).

Eventually the term will be used but it will likely occur only after the debt pyramid collapses. It will then there will be no escaping the term. Until then, everything will be done to ignore the duck in the room. Sorry Aflac, all your marketing does not work in this regard.