No global economic recovery

In this article I want to provide a clear picture of the global economy. I’m seeing it on TV, hearing it on the radio, and being lectured to at a recent seminar about how the global economy is on the road to recovery. Let me put as fine of a point as I can on this. It is complete bunk! We are being lied to. There is no global economic recovery taking place. The situation is getting worse by the minute. In the United States there are over 40 million people presently on food stamps. This exceeds the population of Canada. American dream anyone? The official propaganda unemployment rate in the US is stated at 8.1%. However if you dig deeper and look at the real numbers, one will find the true number is closer to 22%. Take a look at the US debt clock as the total debt in the US increases every second of every day. Now that’s a healthy economy!

Let’s take a look across the Atlantic to see how things are shaping up in Europe. Well, we have riots, mass strikes and protests in almost every country. This must be because the general populous is so happy with their present economic situation. When the fully employed European work force comes home from a complete day of productive employment in a well paying job, they obviously then choose to take to the streets in violent protest because things are so good. European government after European government is enforcing International Monetary Fund backed austerity on their people because we have turned the corner and the economy is on the mend. Sovereign assets are being auctioned off throughout Europe because the economies are strengthening. (Insert sarcasm anywhere here.)

Here at home Ron Cannan has just confirmed that the Veterans Affairs office in Kelowna will be closing, and the Employment Insurance Office will be losing eight workers. This must be because the economy is so vibrant.

I know, I know, I will be labeled as Mr. Doom and Gloom. Not true; I’m just a realist. Imagine how the news would have been received on the Titanic, prior to departure, that the ship would perish on its maiden voyage. After all the great ship was dubbed “unsinkable.”(Much like the global economy.)

But there is a silver lining. As the world economy crumbles, we will see the greatest wealth transfer in the history of mankind. And as a result, the greatest financial opportunity in history will be laid at our feet. Wealth will flow from paper assets to real assets and commodities. Paper assets with multiple levels of counter party risk will be laid to waste, giving way to commodities and that which has been money for 5000 years: Gold and silver.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

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About the Author

Derrick Nicholson is a Currency Strategist. He has been in the industry for the past 20 years, and specializes in mitigating currency risk for companies doing business outside of Canada.

Questions and inquiries can be directed to Derrick at [email protected].


The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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