More evidence the Global Slowdown is speeding up.
The Munich-based think tank Ifo has warned, “the German economy is at risk of falling into recession”
Speaking at the Council on Foreign Relations, Mark Carney, Governor of the Bank of England, warned the chances of a global slowdown have gone up and downside risks have increased.
Add them up – India, Argentina, Venezuela, Brazil, Turkey, plus scores of other nations whose names and places we don’t know or remember – are not only slowing down… they are already down and out.
And it has little to do with trade wars or tariffs.
The world suffers from outdated, failing, ruinous socioeconomic and political systems.
However, Carney, as with the other central bankers contend that major nations, including the U.S., still have the capacity to borrow and spend more to help stimulate growth in times of trouble.
Doubling down on the Carney bet, as expected, this past Thursday the European Central Bank injected another round of monetary methadone to keep the addicted economic bull running.
The ECB announced the biggest package of interest rate cuts and quantitative easing stimulus in over three years, claiming it would reverse flagging eurozone growth.
Again inventing new schemes undreamed of, the ECB cut interest rates from minus 0.4 percent to negative 0.5 percent while buying 20 billion euros a month worth of securities beginning November 1st.
Wanting more cheap money to keep America’s economy on a high note prior to Election Day 2020, following the ECB announcement, President Trump ridiculed the U.S. Federal Reserve as being “Boneheads” and tweeted: “The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt,” adding that “the USA should always be paying the lowest rate.”
How low is “lowest rate?”
Adding to the modern-day monetary insanity, following the ECB rate cut, Denmark sank its interest rates down to a world-record low of negative 0.75 percent.
Trend Forecast: The White Shoe Boys need something much stronger than the central bank junkies’ monetary methadone drugs to keep them high.
The artificial stimulus measures injected into global financial systems artificially boosted economies, creating distortions in equity and real estate markets while severely eroding pensions and personal saving account opportunities.
Therefore, continuing central banks’ stimulus measures will not only further inflate the $250 trillion global debt bubble that will soon explode, the latest injections will at best temporarily mitigate, but not reverse the global economic slowdown, and it will in fact worsen Greatest Depression implications.
Regardless, there will be a growing, loud chorus of Banksters, politicians and special interests calling on governments to implement fiscal stimulus to boost slumping economies as the monetary measures fail to reverse the downtrend.
Before a “crash” there will be a meltdown.
Before meltdown comes a “slowdown”… and the slowdown is speeding up as evidenced by the facts and data you’re reading now in the Trends Journal.