What can’t go on forever, won’t. Progressive Radio News Hour guest Bob Chapman warned investors for years. It’s just a matter of time. Houses built on sand collapse. American and European economies are no exception. They’re sick and getting sicker.
Another Greek crisis approaches, Chapman warns, whether “via austerity, demonstrations, military coup,” or perhaps the worst of all three if public rage erupts in violence.
Ireland, Portugal, Belgium, Spain and italy are next. BRIC giants China, India and Brazil are weakening. Pyrrhic victories conceal core meltdown trouble. Are policy makers “dumb enough to believe that austerity, lower wages and higher taxes bring prosperity?” What’s happening in Europe and America looks “surreal.” Recovery’s an illusion.
Another dirty secret is that France, Britain, and other EU countries also show weakness. “These problems are going to go on and on and on,” says Chapman.
Economist David Rosenberg also warns of trouble. Disturbing signs are everywhere. In America alone, consumer spending stagnated. Core capex shipments are down. The trade deficit’s widening. Mortgage applications are falling. Mortgage refinancing activity collapsed. Gas prices are heading for $4 a gallon on their way perhaps to 5.
This is what Occupy Wall Street is fighting for.