Ep. 119B – Global Economy Continues to Slow

The Kapital News
The Kapital News
Ep. 119B - Global Economy Continues to Slow

Awash with Purchasing Manager Index (PMI), figures coming out over the last couple of days continues to highlight what we have been describing for months – a global economic slowdown. Much of the focus is on Germany, the US, and Japan, but also to the broader Eurozone area, Australia, and other periphery nations. All-in-all the net position is in the negative, either in contraction, a reading below 50, or a continuation of slower expansion, readings above 50. Perhaps the biggest declines were experienced in Germany, which is getting hit from all sides. Whether it’s the ongoing trade dispute between the US and China, the uncertainties around Brexit, the slowdown in China, the weakness of Europe’s financial system, or other ripple effects the world over, one thing is certain – it’s not good for Germany and it’s likely they are in or are nearing a recession. This will not bode well for the rest of Europe or the world, especially given the size of the German economy. Furthermore, there have been more aggressive calls by central bankers “suggesting” that governments also step up to the plate to “stimulate” their economies via fiscal policies, since monetary policy can only do so much. Well it’s going to be quite the move for the Germans to decide to take on more debt at the exact same time that their economy is slowing down. The Germans are quite fiscally prudent and not likely to turn on the debt spigot anytime soon. Further developments out of Europe over the weekend witnessed the failure of Thomas Cook, a UK hospitality and travel agency service, as they filed for bankruptcy. This company has been around since the 1850s and had to file for bankruptcy protection due to their outstanding debt load. Are they a canary in the coal mine? Their bankruptcy leaves thousands of people on holiday/vacation stranded, however, efforts are underway to ensure that proper arrangements are made. This also places up to 9,000 UK jobs in the crosshairs and will only add to the economic and political uncertainties that exist regarding Brexit. Stay diversified, stay vigilant, and stay with The Kapital News. #Recession #Economy #Debt #Politics #EndTheFed #TradeWar #Peace #WakeUpAmerica

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