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The Next Global Recession

The Next Global Recession
August 31
16:13 2015

 

If you are not worried about the global economy, you might want to open your eyes – before it’s too late.

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Because of its widespread use in industrial applications, copper historically has been considered a reliable barometer of the state of global market activity. As you can see by this chart below, copper prices have now fallen below the level they were right before the commodities bubble burst in the summer of 08.

 

A graph of the last 5 years indicates that, despite claims of an improving world economy, we will soon be reaching a level of growth similar to what was occurring during 2009, when the recession was in its darkest hours. Unlike the rapid decline at the end of 2008, we are watching a slow-motion train wreck before our eyes.

 

As the value of global copper proves, production is in decline. Russia, Brazil, even China, have all entered a period of growth stagnation.

According to CNN Money, the Chinese government even gave money to brokerages to buy stocks, ordered company executives not to sell their shares, and suspended new company listings. The central bank cut interest rates to a record low. Any signs of security in China are merely an illusion.

Regulators and security officials launched an investigation into illegal short selling — borrowing stocks so you can trade them in the hope they fall — and rumor mongering. Only approved brokers are allowed to engage in short selling in China.

Though Beijing is claiming a rebound for their markets, these strong arm tactics have added further doubt in the legitimacy of the Chinese economy forecasts.

Given the economies of all the wealthiest economies have stagnated, there is little surprise over the world trade volume has dropped over 2% ( the biggest drop since 2009)

As Wall street analyst Wolf Richter wrote, “this isn’t stagnation or sluggish growth. This is the steepest and longest decline in world trade since the Financial Crisis.”

All the signs of another, greater recession are right in front of you. The time to prepare for a global economic failure has unfortunately come, and everyone needs to be prepared. We will outline some important strategies for keeping you and your family safe in next week’s article.

 

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Sean Gibbons

Sean Gibbons

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