Double dip my recession
I don't wish to challenge the vacant aspiration that justifies the largest transfer of wealth via tax cuts that are being borrowed and raised through a GST rise to the top 2% while our Dear Leader Optimist Prime joyfully crushes Unions and laughs in the face of negativity while opening cycle lanes that were supposed to provide 3700 jobs but has only coughed up less than 200. I'd hate to sound realistic while the Emperor has no clothes on but it seems that attempting to adopt domestic neo-liberal free market low tax deregulated dogma to combat the global economic collapse caused by neo-liberal free market low tax deregulated dogma seems as insincere as a Steve Jobs apology.
NEW YORK – The global economy, artificially boosted since the recession of 2008-2009 by massive monetary and fiscal stimulus and financial bailouts, is headed towards a sharp slowdown this year as the effect of these measures wanes. Worse yet, the fundamental excesses that fueled the crisis – too much debt and leverage in the private sector (households, banks and other financial institutions, and even much of the corporate sector) – have not been addressed.
Private-sector deleveraging has barely begun. Moreover, there is now massive re-leveraging of the public sector in advanced economies, with huge budget deficits and public-debt accumulation driven by automatic stabilizers, counter-cyclical Keynesian fiscal stimulus, and the immense costs of socializing the financial system’s losses.
Nouriel Roubini doesn't see the optimism John Key does and in fact seems spooked by Israel possibly attacking Iran...
And one cannot exclude the possibility of an Israeli military strike on Iran in the next 12 months. If that happens, oil prices could rapidly spike and, as in the summer of 2008, trigger a global recession.
...my God Israel can't be that stupid could they??? Roubini's final call hardly supports Key's medicated positivity...
So, as the optimists’ delusional hopes for a rapid V-shaped recovery evaporate, the advanced world will be at best in a long U-shaped recovery, which in some cases – the eurozone and Japan – may be long enough to stretch into an L-shaped near-depression. Avoiding double dip recession will be difficult.