Worldwide Recession Coming?
This from Reuters:
Japan's direct competition in world markets is Europe. With the Yen expensive for so long relative to the Euro, German car makers passed the Japanese in worldwide sales in many areas. Now things have reversed, with Toyota regaining its lead from Volkswagon.
This is just the start. This is the next leg in the currency war that began, according to Jim Rickards, in 2007. Things are now heating up.
And if everyone continues to devalue their currency in order to compete, we've got a full-scale, accelerated race to the bottom, just like the "beggar thy neighbor" policies (as they were known then) that marked the Great Depression.
Will the U.S. now slip into recession?
Read the rest of the article by clicking HERE.
The euro-area recession deepened more than economists forecast with the worst performance in almost four years as the region’s three biggest economies suffered slumping output...No real surprise here. That's what the next sentence in the article's all about:
The European data chimed with statistics in Japan, where the economy unexpectedly shrank last quarter as falling exports and a business investment slump outweighed improved consumption. GDP fell an annualized 0.4 percent, following a 3.8 percent fall in the previous quarter.
That bolsters Prime Minister Shinzo Abe’s case for more monetary stimulus to end deflation.Maybe this is what the G-7 folks were seeing when they made their ridiculous comments about avoiding a currency war. (Click HERE.) If European economies are slowing and Japan devalues its currency - which it will - this spells more trouble for Europe.
Japan's direct competition in world markets is Europe. With the Yen expensive for so long relative to the Euro, German car makers passed the Japanese in worldwide sales in many areas. Now things have reversed, with Toyota regaining its lead from Volkswagon.
This is just the start. This is the next leg in the currency war that began, according to Jim Rickards, in 2007. Things are now heating up.
And if everyone continues to devalue their currency in order to compete, we've got a full-scale, accelerated race to the bottom, just like the "beggar thy neighbor" policies (as they were known then) that marked the Great Depression.
Will the U.S. now slip into recession?
Read the rest of the article by clicking HERE.
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