CRYSTAL BALL GAZING

Economic Recovery, Slowdown,

or Depression

by Alex Hutchins

The US has the largest and most technologically powerful economy in the world, with a per capita (per person) GDP of $47,200. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. 

Median (per person) income is $26,364 while median household income is $49,909.

Actually, this is very interesting because the word median is defined as that point in the middle where half is above that point and half is below that point.

Pelosi investigates
 the shortage of drugs

Corporate profits

The BEA (Bureau of Economic Analysis – US Department of Commerce) released its first estimate of first quarter corporate profits.  Over the last 4 quarters, corporate profits increased 6.5 percent.

the interdependance
 of the global economy

Global Economy

At best, it could be 2013 – at least five years after the crisis began – before we can be fully confident of a return to long-term growth in the global economy.

The financial crisis did not suddenly materialize. Its roots grew over time, in seemingly unnoticed spurts, as consumers, financial institutions and much of the economy took on unsustainable amounts of debt. The financial sector is the heart of the circulatory system of the economy, pumping capital from savers to borrowers who use the funds to direct resources to where they are needed most. A less-than-healthy financial sector limits the strength of the recovery.

The outlook for the global economy

in 2012 is clear, but it isn't pretty:

recession in Europe, anemic growth at best in the United States, and a sharp slowdown in China and in most emerging-market economies. Asian economies are exposed to China. Latin America is exposed to lower commodity prices (as both China and the advanced economies slow). Central and Eastern Europe are exposed to the eurozone. And turmoil in the Middle East is causing serious economic risks – both there and elsewhere – as geopolitical risk remains high and thus high oil prices will constrain global growth.         Read more

OPEC countries in orange

These Countries represent 66.50% of U.S. Imports, and 59.92% of U.S. Exports.

Country Name    $ Imports         $ Exports

 Canada                 55.46               153.99

 Mexico                 44.05               122.40

 China                    41.33               120.98

 Japan                    19.40                 54.76

 Germany               14.72                 38.28

 United Kingdom    10.44                 28.84

 Korea, South           9.00                 25.15

 Brazil                      7.27                 19.09

 France                    6.66                 17.86

 Saudi Arabia           6.64                 18.64

It is not just our leaders and mentors who have cause this to happen but US (not United States but you and me, American citizens). 

For example,

As we purchase more and more gasoline for our transportation needs, not only do we transfer dollars out of this country but we become more and more dependent upon that gasoline to perpetuate our lifestyle; hence, we become dependent upon those oil producing countries.



click to enlarge



As we purchase more and more goods like cars, jewelry, clothes, exotic foods, electronics for our lifestyle needs in general, not only do we transfer dollars out of this country, but we again become more and more dependent upon products from those countries to perpetuate our lifestyle.

Bear in mind that we also sell goods and services to other countries, so when their economies fall into recession and unemployment rises, those countries as a whole, reduce their purchases of goods and services from us, thus reducing our individual as well as collective incomes.

Our country and these countries become inextricable tied together and it is always to our mutual advantage to help each other out in a financial crisis or economic recession.

In plain language, our individual greed (needs and desires) coupled with poor management of our businesses and financial institutions coupled with poor regulatory management by our Govt has caused this economic recession to take place and perpetuate itself into the future.

ALARMING

is the fact that everyone and I mean everyone believes that the economy will move into a depression the likes of which has not been seen since the last great depression, and guess what . . .

This statement has always been referred to as the
Self-fulfiling Prophecy . . .