The US Is About To Plunge Into A New Recession

Dr. Michael LaitmanOpinion (Gary Shilling, from Business Insider): “…Shilling writes that ‘consumer spending is the only major source of strength in the U.S. economy this year,’ but now all signs point to retrenchment:

“While consumers should be “reduc[ing] debt and rebuild[ing] net worth, they have been doing the opposite lately. …”

“Last but not least, Shilling says the clamor for a new age of ‘Nifty Fifty’ stocks demonstrates that investors are actually quite skeptical of the recovery, preferring instead to place safe bets on companies with such ‘wonderful long-term growth prospects that investors could simply buy them and never worry about selling.’

“He explains: ‘The zeal for Apple, whose share price is up more than 50 percent this year alone and is almost double its year-ago level. …’

“Not to mention that the possibility of renewed crisis in Europe and a hard landing in China—compounded by a decline in demand for Chinese products from Europe—continue to hang heavy on prospects for the global economy.

“Thus, he concludes, a new recession is inevitable: ‘The U.S. economy is overdue for a recession. I believe that it entered the down phase of the long cycle in 2000, and the five to seven years that remain in the age of deleveraging are part of this period of weak economic growth and more frequent recessions.’”

My Comment: By the way, the crisis didn’t disappear anywhere, all of its ups and downs are the temporary hiding and manipulation of records; it’s no more than a temporary reviving of the dying—the world economy of network marketing, which will collapse without constant expansion!

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