American households currently have nearly $17.1 trillion in consumer debt, with balances standing $2.9 trillion higher than before the lockdown-induced recession, according to data released on Monday from the Federal Reserve Bank of New York.
Read More: Daily Wire
Federal Reserve Chair Jerome Powell, fresh off winning Senate confirmation for a second term earlier in the day, acknowledged for the first time on Thursday that high inflation and economic weakness overseas could thwart his efforts to avoid causing a recession.
Read More: Newsmax
Nouriel Roubini, head of Roubini Macro Associates, sometimes known as Dr. Doom, is famed for his pessimistic ecomomnic predictions. He has said that he believes next year will see the global economy tip into recession. He thinks the trade war between the US and China, as well as mounting oil prices fuelled by tensions in Iran will tip the economy next year.
Read More: Yahoo
The Euro continues to fluctuate against the pound and the US dollar, as the eurozone remains unsettled, with Britain discussing referendums in 4 years time on their eurozone membership, causing unrest in financial markets.
The US dollar is also affected as fiscal cliff agreements continue to unfold, however, the GB Pound Sterling seems to be most affected this month by Cameron’s political agenda re Europe, which destabilises UK business who want to move forward with long term plans in an already difficult economy.
Greece, Italy, and Spain also continue to try to claw their economies back from the edge but progress is very slow and no improvement is expected in next 12 months.
The EURO stands at 1.168 against the GBP, showing a sharp drop this month from 1.24 in December.
Euro to GBP – Last 6 months
EURO to GBP – January 2013 – last 30 days
EURO to USD – January 2013 – last 30 days
EURO to USD – Last 6 months
Democrats and Republicans failed to vote on a deal to stop America falling over the fiscal cliff. The $607 billion of tax hikes and spending cuts take effect at midnight.
President Obama said that a deal had been within sight.
It is believed Congress will meet again Tuesday and come up with a deal to reverse the tax hikes and spending cuts, before any serious damage is done.
However, if they fail, it is widely predicted the fiscal cliff will plunge America back into recession, and the global economy into turmoil.
Merry Christmas and a recessionary new year | FT Alphaville.
Strategist with Societe Generale, Albert Edwards, believes the US econonmy will head into recession early 2013. He argues that falling corporate profits mean the US economy is not as healthy as some may want us to believe. He also points to the trend that for the four years first quarter growth has been disappointing. The graph shows that in each first quarter, economic growth has been slower than the fourth quarter of the previous year. If this pattern continues into Q1 of 2013 we may see the economy contracting.
With current growth in the US low, it would not take much to cause the economy to slip back into recession.
Angela Merkel recoils from Greek showdown on Spain contagion fears – Telegraph.
The German Chancellor Angela Merkel has been visiting Athens today, for the first time in three years. She comes at a time when Greece is looking for the next €31.5bn tranche of aid. Without the aid Greece will run out of money by the end of November. Recent figures show Greece has been in recession for 5 years, it’s economy has shrunk by 22%, and youth unemployment is currently at 55%.
Mrs Merkel was met with angry protestors and required 6,000 police officers to protect her. Greeks, and the Greek media, greeted her with Nazi insults.
Both the EU and IMF have been insistent that Greece steps up austerity measures in order to receive the money. However, Mrs Merkel came to Athens with a softer tone than Athens has previously heard.
There has been mounting pressure on Germany not to allow Greece to default, thus forcing her out of the eurozone. If Greece were to exit, then Spain would likely follow, and the euro would break up. Also tougher austerity measures could result in the collapse of the pro-Europe ruling coalition. If the Greek government collapses it would likely be replaced by either a far-right or far-left alternative. That could destabilise the entire region, affecting the Balkan region and Turkey, something no one wants to see.
It is likely Greece will receive the next instalment of money, however the €31.5bn will only keep Greece afloat a few more months. And as time passes both Spain and Portugal are edging closer to requiring more bailouts.
According to the FBI, violent crimes continue to drop in 13 of the Bay Area’s 15 biggest cities. Despite economic recession there are fewer murders, robberies, aggravated assaults and forcible rapes.
The annual homicide averages in San Francisco have nearly halved since 2004. Also, according to the San Francisco Chronicle, Fremont, Concord and Daly City saw violent crime declines of better than 20 percent last year.”
“…Over the past year, the state has shed tens of thousands of inmates… Despite fears of repercussions, the violent crime rate has continued to drop.”
San Francisco Public Defender Jeff Adachi noted that the San Francisco murder solved rate has jumped from about 30 to 80 percent.
from San Francisco Crime Dropping, According To FBI Report.
See prophet.tv and the famous Building the Warrior Teaching Series for possible explanations to this phenomenon.
The close of trading this week has seen the Dow Jones down for the fourth consecutive week. The last few weeks have seen global markets fluctuate wildly. On many days the spread of the gains and losses have been so extreme, one would expect to see such changes over the course of a year, not a day’s trading.
The erratic behavior of the markets has fueled fears of a double-dip recession in the US and Euro-zone nations, as already slow growth reduces even further.
Economic analysts are seeing markets behave in ways never before seen in the history of stock market trading- this is unknown territory. Some believe we may be heading for a global depression, or Japanese style stagnation.
The fear within the markets is primarily being fed by the continued uncertainty in the Euro-zone nations. Italy and Spain are looking increasingly unstable, and either one of their economies would be too big to bail out, in the manner of Greece. Even the second Greek bail-out package is looking uncertain, as the other Euro-zone nations loose confidence in Greece’s ability to pay back their debts.
Economists have not given up all hope of finding a way through this present crisis, although the margin for error is very slim. Many believe the only way out is for a break up of the single European Currency. If the economic heavy weights of the Euro- Germany in particular- were to leave it would allow the Euro to devalue, bringing relief for the PIGS nations. Despite the economic virtue of such a plan it is currently politically unthinkable in Germany, as such a move would plunge Germany into a harsh recession.