Economic News

Friends, 

    Hopefully you have been watching the news. 

You ever wake up and look at the thermometer coool  42 F. put a nice sweater on and go out side to FREEZE.  the thermometer is BRook its really 28 F 
 So when you want the local weather you get the temp. humidity, prevailing winds ( thats very important).  
If you understand scientific investigation and you want the weather in the Future you need a lot more: barometric pressure, Jet Stream flow, need to study the "whole climate system".

The truth of the matter is the World Economies are in trouble with a Capital T.    The Financial systems of the  largest Economies of the world are in Serious Trouble. 

Partly because computer are using algorythums to create profit based on buy and sell number in fractions, not what the "economic systems" were designed for. 

I dont have anything to sell you and I am not giving advice on what to do, I am just reporting what I know to be true. Scientific analysis has been my predisposition for decades. On line Blog http://www.economic-collapse.blogspot.com

Text of Blog.

The largest economy in the world is the European Union.

This is what has been happening there for years. 

Greece and Spain are experiencing economic depressions which continue to get worse.   Italy and France are headed down the same road as Greece and Spain. 

Violent protests and economic unrest dominate European newspapers. 

European leaders hold meetings, but all of the "solutions" that get announced nothing seems to get fixed. 

The Greek government said they will completely run out of cash by the end of November.

The Greek economy contracted by 4.9 percent during 2010 and by 7.1  % during 2011. The Greek economy has contracted by about 20 percent since 2008.

     Greece continues to implement wave after wave of austerity measures which have pushed the country into a deep depression. Greece is still spending more money than it is bringing in. The Prime Minister Antonis Samaras said, "Greek democracy stands before what is perhaps its greatest challenge,  Citizens know that this government is Greece's last chance." 

Samaras has repeatedly appealed for international lenders at the EU and IMF to relax the extreme conditions of the bailout.

    The solution is not sustainable, borrow more, pass the burden onto the next generation. Eventually the U.S. and much of Europe will follow the same path of financial collapse. 

Spain is the 12th largest economy in the world and said it will need no help.

When Greece first started austerity measures, Spain said it would never happen to them.  Spain is in the middle of a down slide akin to the Great Depression of the 1930's. The unemployment rate for those under the age of 25 is now above 50 percent.

True: 9.8 % of all loans Spanish banks hold are considered to be bad loans. 

Manufacturing in Spain has contracted for 17 months in a row.

The number of corporate bankruptcies in Spain is rising.

Five Spanish regions have requested financial help from the national government.  Spain's largest bank, Banco Santander SA, lost 6.3 percent of its domestic deposits in July and savings at Banco Popular Espanol SA, fell 9.5 %.

A total of 326 billion euros was removed by depositors from banks in Spain, Portugal, Ireland and Greece in the 12 months ended July 31.

Eurobank Ergasias SA, Greece's second-largest lender, lost 22 % of its customer deposits in the 12 months ended March 31.   Alpha Bank SA (ALPHA), the country's third-biggest, lost 26 % of savings.

The equivalent of 7 % of GDP was withdrawn from the Spanish banks  in the month of July.

But Greece and Spain are not alone in economic distress.

     The number of unemployed workers in Italy has risen by more than 37 percent over the past year.

The unemployment rate in France is now above 10 %, and has risen for 16 months.

The chief economist at the IMF  now says that it will take until  2018 for the global economy to recover.

Depression is sweeping much of south  Europe.

The largest economy in the world (EU)  is crashing and most persons do not recognize it.

I'll be writing more as necessary. 

Raymond Clough

PH 541-288-1729