Friday, August 05, 2011
Global Confidence in Economy Collapses
5 August 2011
Today’s Headlines read: “Over 1,400 Millionaires paid no taxes in 2009.” (HuffP); “Hard Times to Get Tougher: Market Plunge Making You Poorer.” (MoneyNews); “EU Leaders to Hold Crisis talks” Reuters “Nervous Markets: High Anxiety” (The Economist)
“Markets rally on US economy boost” (The Times) “U.S. Posts Stronger Job Gains Amid Fear” (New York Times); “Milan returns Positive, BTP to peak the EU: Rome Will accelerate the reforms” Italy’s (La Repubblica)
The headlines are all about the economy and rightly so. In the past the mainstream media has blasted its readers that the economy is getting better and that there is nothing to worry about, but this time they can no longer ignore the economic crisis that is in our grip. Almost everyone knows someone who has lost their job, watched the closures of factories and homes; new stories top the headlines about government, banks, and journalist corruption investigations. There are now new fears of an American double dip recession and the world watches to see what will happen.
In Europe and America, bank deposits have been lower in numbers, with less new business start ups, and less consumer spending, this is the result of the instability of the economy. Citizens and corporations are now waiting to see what is really going to happen in the American and global economy before making any investments. Most of the regular folks have a lack of faith in the future growth of the economy, do not trust the governments and feel cheated by the bank bail -outs with a possible lack of justice in retribution for their crimes.
I am not an economist, but by using common sense, I know that I would not want to invest or trust my hard earned money in an unstable market with those who have caused the crisis to begin with. Why would I? I also understand, that if I remove my money from the giant banks who receive large bonuses, this does not help our economy because it is the banks that loan out the money to small businesses, large businesses, and for the people. I also understand that if I decide to sell all my stocks now, that does not help the market either. I have read the article “Sell of wipes $2.5 Trillion off world stocks this week” The World Index is down 8.6%, I can’t even call my broker and ask him to move my investments into the foreign stock markets.
Around six months ago, I thought about buying gold, I procrastinated to wait until I went back to the U.S.A. and buy gold there. At that time, the price of gold was at $900 per ounce; today it is up to over $3,000. The profit would have helped me to pay off my student loans. With the fear of the dollar going down, the price of gold going up, the value of stocks, housing and other investments going down, I don’t think that we are heading for a double dip recession because I personally feel that we never really got out of the first recession. The growth rate was only 0.8%, which is not a very high and stable number. The bottom line? I think that we are headed for stagnation in the American economy, which will most likely soon be followed in Europe.
Who seems to have the power here? It is not Obama, he did not stand up to the Republicans and the leaders have played a risky game with the American’s economy while battling between parties in the name of honor. The American leaders did not make any concrete decisions leaving most concerns to be handled by a commission who will have to bear the fault and carry the weight. Congress did the opposite of a deal that could have helped our economy with cuts over the next decade? Should I start a business today if I knew that my taxes were going up, but did not know when or what? I don’t think so.
The worst of all is the lack of renewal of the unemployment checks, which will end in December. This will leave 14 million Americans without a paycheck in 2012 and with less jobs that equals less tax revenue for the government.
No one wants to hear this, but if things keep going the way that they are, I believe that we are headed for a second great depression.The outlook does not look good to me, as a photojournalist, humanitarian, documentary focused citizen.
Making Sense of the Bank of America Mortgage Fraud and Negotiations
Debt Plan Fact Sheet
Our Tax Dollars at Work
Satellite View of Foreclosures
American Struggling Middle Class
Global Confidence in Economy Collapses
Crime Against Humanity Which Countries Have the Most Days Off?