Lots of talk that the world is heading towards another recession. But then there's another view: the global recession is already here.
24/7 Wall Street presents nine signs that global recession has arrived: shipping rates, a critical indicator of global financial health, have fallen; GDP forecasts around the world have been cut, demand for oil is dropping as companies wind down activity, stock markets around the world are in retreat, unemployment is rising everywhere, we are seeing more war and political unrest, poverty is on the rise, governments everywhere are cutting spending and Wall Street banks are predicting a massive slowdown and even a recession.
Financier George Soros has told Spiegel that the markets have all but guaranteed a recession. How so? They caused it. "The indebtedness of the US is not all that high, but if a double-dip recession was in doubt a few weeks ago, it is less in doubt now, because financial markets have a very safe way of predicting the future. They cause it. And the markets have decided that America is going to see a recession, particularly after the recent downgrade of the US by the rating agency Standard & Poor's."
Soros says that Obama has embraced the ideas of John Maynard Keynes which is all well and good except for one thing: in the 1930s, governments had practically no debt and could therefore run deficits. Nowadays, all governments are heavily indebted which hamstrings their ability to fix the crisis.
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