Monday, July 2, 2012

Global Economy Continues to Stumble

It's a movie title but it might as well
 describe the global economy.
The US has seen a slowdown in manufacturing for the first time in three years. China has also seen a drop in manufacturing.  This should send a very large signal to everyone since the largest manufacturing nation, still the United States, and the largest fastest growing manufacturing nation, China, are shrinking. The fact that it is happening to both nations is either a testament to how shaky the world economy is currently, which it is, or a statement on how intertwined the two economies have become, which they have. 

As I said earlier, there will be no cavalry to save bail out the world economies.  Individuals might do alright, however, when the entire western world struggles, and the allegedly most dynamic developing nations struggle, it will be hard for nations to not be severely affected.

Let's recap:

Brazil is struggling as they endure manufacturing layoffs.
The Indian government is white washing their economic news.
Euro-zone nations now see unemployment highs.
Japanese corporations are pesimistic

Russia was the only BRIC nation that I couldn't find economy news using a cursory google search.  But considering that Russias economy is heavily based on petroluem and mineral exports to the more advanced industrial economies of Europe like France and Germany.  Then you also have to think of Australia which have relied heavily commodity exports, such as copper which the Chinese have slowed or stopped certain purchases all together, and with the slowdown of the economy means a decrease in demand for their goods.

Now that the hair of the dog is running out get ready for an epic hangover.

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Seattle resident whose real name is Kevin Daniels. This blog covers the following topics, libertarian philosophy, realpolitik, western culture, history and the pursuit of truth from the perspective of a libertarian traditionalist.