Economy

Financial markets have largely been focused on Europe's debt crisis, the looming fiscal cliff in the U.S., and the deceleration of the Chinese economy but there are at least 14 other global geo-political risks that investors need to watch for. [The list is below.] Words: 415

Nothing explains the world more elegantly than a map and, in that spirit, we've compiled the 15 most excellent, unusual, and just cool maps that we've recently come across. They cover all the bases: economics, politics, culture, immigration...and some fun stuff too. Take a look. Words: 345

Europe is heading into a full-scale disaster [because,] you see, the debt problems in Europe are not simply related to Greece. They are SYSTEMIC. The European banking system's leverage levels alone position Europe for a full-scale banking collapse on par with Lehman Brothers. Again, I'm talking about Europe's ENTIRE banking system collapsing. This is not a question of "if," it is a question of "when" and it will very likely happen before the end of 2012. Words: 750

"Regardless of whether or not you feel taxes need to be raised, a big set of tax hikes is scheduled to happen. To be sure, some of those hikes will be undone in compromises, but many if not most will sneak through." [Let me explain.]

An op-ed has just been published in the New York Times suggesting that the best way to save the euro is for Germany to exit the European Union and re-introduce it former currency, the Deutsche mark. [Here is the rationale.] Words: 310

Why read: It is foolish not to consider the possibility of depression, particularly in the face of the preponderance of commentary over the past many months that rampant inflation is on the horizon. [Here I review, analyze and comment on one such article on that possibility.] Words: 697

Americans, don't think for one moment that the crises in Europe are irrelevant! This past April the U.S had the largest monthly decline in exports to Europe in the past 7.5 years and this trend will only get worse - much worse - as the crises spread and linger. Exports to Europe are now down 2.7% from April 2011, the first yearly decline since February 2010. The chart below says it all.

I am amused by the Shadow Weekly Leading Index Project which claims the probability of recession is 31%. I think it is much higher....Let's take a look at why. >Michael "Mish" Shedlock< (http://globaleconomicanalysis.blogspot.com) Words: 530

"The entire financial system is in collapse. It’s not about the Greeks, Spanish, Italians, English, Americans, the Chinese, it’s about everybody. That’s what we’re looking at, and...I believe a tidal wave entrance into gold will happen when there’s a real collapse and catastrophe that they can’t paper over anymore. When does the crash point happen? No one can tell, but all of the cards are in place for the house of cards to collapse.”

"Ben Bernanke is trying like mad to stimulate credit and lending but to no avail. It's an uphill battle because of demographics, student debt, and lack of jobs. [Frankly however, given such an environment,] prospects for family formation are fundamentally very weak and overall economic fundamentals are very weak as well" [and that certainly does not bode well for housing coming back anytime soon. Let me explain.] >Michael "Mish" Shedlock< (http://globaleconomicanalysis.blogspot.com)Words: 650