And so the US National Bureau of Economic Research has decided that the recession, which began in December 2007 actually ended in June 2009. Yeah right. This must be extraordinary news for the one in seven Americans now living in poverty and the growing army of unemployed which is tipped to hit 11% next year. Economists are on another planet.
Indeed, the Global Europe Anticipation Bulletin has tipped that the long anticipated crunch will hit the United States in November with worse to come next year.
The bulletin says: "Now the first half of 2011 will dictate that the US economy take an unprecedented dose of austerity plunging the planet into new financial, monetary, economic and social chaos …For these tens of millions of Americans austerity is here and it's called lasting impoverishment. What is going to come into play between now and Spring 2011 is, therefore, the shift into official speeches, budgetary policies and international awareness to the idea that the United States is no longer the land of plenty but the "land of few". And beyond the domestic political choices, it is also the discovery of a new limitation for the country: the United States cannot afford a new stimulus. Rather than a multi-decade collapse like the Japanese situation, many decision makers will be tempted by shock therapy … this same therapy that, with the IMF, the United States recommended to Latin American, Asian and Eastern European countries."
Even if the forecast is wrong, even if nothing happens in November and there is no repeat crunch, the long term damage to the US economy has been done, says the OECD.
"Previous US recessions have exhibited no long-term damage to the economy or long-term increase in unemployment, but it is possible this recession will trigger these effects," the OECD said.
no comment untill now