The greatest risk to the United States economy right now is a recession triggered by the European financial crisis. [Below is a chart that clearly depicts each of the 50 states exports to Europe as a % of GDP. You will be surprised at what it reveals. Take a look.] Words: 235
So says Dr. Bill Conerly (http://businomics.typepad.com) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
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Conerly goes on to identify U.S. exports to Europe as a % of every state’s individual GDP, as follows:
(Exports are from http://tse.export.gov/TSE/TSEHome.aspx, and GDP comes form http://www.bea.gov/)
The data are not perfect, but they do give a general idea of how high each state’s direct risk from Europe is. I say direct risk because there’s also indirect risk: if a bunch of East Coast states go into recession, the West Coast can’t avoid it even though their direct exports to Europe are small.
Sorry. I don’t make the news. I just report it and I continue to believe the risks [facing the world] are so serious that…this is what will happen next. Soon Greece will default…[and] this will begin a chain reaction of [events leading to… I lay it all out in this short article and I think you will agree that it makes absolute sense.] Words: 912
For decades, the governments of the western world have been warned that they were getting into way too much debt. For decades, the major banks and the big financial institutions were warned that they were becoming way too leveraged and were taking far too many risks. Well, nobody listened so now we get to watch a global financial nightmare play out in slow motion. Grab some popcorn and get ready. It is going to be quite a show. [Let me explain.] Words: 1075
Europe is on the verge of a collapse, and unless something gets done relatively soon, (perhaps as soon as the next few weeks), Europe is likely to experience their own 2008 scenario. The U.S. and Chinese economies are heavily dependent on exporting goods to Europe, and with Eurozone growth slowing as a result of the potential default in Greece, and then on to the rest of the PIIGS, a “Great Depression-like scenario” could very well play out. [In fact,] George Soros thinks we are headed towards another Great Depression and, you know what, he’s right! What do you think? Is George Soros right? Are we headed for another depression? Words: 530
The internet is awash (drowning?) in hundreds of doom and gloom videos providing dire warnings of coming world depression, food shortages, rioting in the streets, rampant (hyper) inflation, deepening banking crisis, economic apocalypse, financial Armageddon, the demise of America – well, you get the idea. Below is a small sample of such videos with a link to each. Sit back with your favorite beverage (or two/three!), turn up the volume (some of the music is foreboding) and look over the abyss into the pit of financial and economic despair that some see as about to erupt and engulf us in the months/years ahead. Take heed – you are being forewarned!
It is widely accepted that Greece is insolvent even though the higher echelons of euro-zone politics still hesitate to use the term, and default swap prices…give virtually 100% odds that Greece will default. The handling of the issue has heightened the perception of risk for other problem countries of the euro zone…such that investors now give 60% odds of default by Portugal…and 30%-plus odds for default by Italy… Even France, with its S&P AAA rating, is now rated more likely to default than Brazil! [In addition, the U.S. is facing the liklihood of a fiscal policy impasse in Congress that could well lead to a recession. As such, as we see it, the risk of contagion in the financial system around the world has risen dramatically. We substantiate our contentions below.] Words:1612
The global financial system is highly interconnected so problems in one part of the world can reverberate almost everywhere else – risking a default, contagion, contracting credit and collapsing economic activity… [Take a look at the amazing graphic in this article to get] a visual guide of the intertwined complexities of the crisis.