The following are 21 signs that the global economic crisis is about to go to a whole new level….
#1 Bank of Israel Governor Stanley Fischer says that the global economy is “awfully close” to recession.
#2 It was announced last week that the unemployment rate in Greece has reached an all-time high of 25.1 percent. Unemployment among those 24 years old or younger is now more than 54 percent. Back in April 2010, the unemployment rate in Greece was only sitting at 11.8 percent.
#3 The IMF is warning that Greek debt may have to be “restructured” yet again.
#4 Swedish Finance Minister Anders Borg says that it is “probable” that Greece will leave the euro, and that it might happen within the next six months.
#5 An angry crowd of approximately 40,000 angry Greeks recently descended on Athens to protest a visit by German Chancellor Angela Merkel…
From high-school students to pensioners, tens of thousands of Greek demonstrators swarmed into Athens yesterday to show the visiting German Chancellor, Angela Merkel, their indignation at their country’s continued austerity measures.
Flouting the government’s ban on protests, an estimated 40,000 people – many carrying posters depicting Ms Merkel as a Nazi – descended on Syntagma Square near the parliament building. Masked youths pelted riot police with rocks as the officers responded with tear gas.
The authorities had deployed 7,000 police, water cannon and a helicopter. Snipers were placed on rooftops to ensure the German leader’s safety.
#6 The debt crisis is Argentina is becoming increasingly troublesome.
#8 Standard & Poor’s has slashed the credit rating on Spanish government debt to BBB-, which is just one level above junk status.
#9 Back in the year 2000, the ratio of total debt to GDP in Spain was 192 percent. By 2011, it had reached 363 percent.
#10 Record amounts of money are being pulled out of Spanish banks, and many large Spanish banks are rapidly heading toward insolvency.
#11 Manufacturing activity in Spain has contracted for 17 months in a row.
#12 It is being projected that home prices in Spain will fall by another 15 percent by the end of 2013.
#13 The unemployment rate in France is now above 10 percent, and it has risen for 16 months in a row.
#14 There are signs that Switzerland may be preparing for “major civil unrest” throughout Europe.
#15 The former top economist at the European Central Bank says that the ECB has fallen into a state of “panic” as it desperately tries to solve the European debt crisis.
#16 According to a recent IMF report, European banks may need to sell off 4.5 trillion dollars in assets over the next 14 months in order to meet strict new capital requirements.
#17 In August, U.S. exports dropped to the lowest level that we have seen since last February.
#18 Economics Professor Barry Eichengreen is very concerned about what is coming next for stocks in the United States…
“I’m worried that stock markets in the United States in particular have gotten ahead of economic growth”
#19 During the week ending October 3rd, investors pulled more than 10 billion dollars out of U.S. mutual funds. Overall, a total of more than 100 billion dollars has been pulled out of U.S. mutual funds so far this year.
#21 When shipping companies start laying off workers, that is one of the best signs that economic activity is slowing down. That is why it was so troubling when it was announced that FedEx is planning to get rid of “several thousand” workers over the coming months. According to AFP, “its business is being hit by the global economic slowdown”.