Economic Indicators Show Recession As Early As Next Month

"Will more stimulus make a difference?

Over the course of the last few weeks we have seen economic reports released that have raised recessionary alarm bells. In addition, the European drama erupted again as European bond vigilantes attacked Europe’s weakest links (PIIGS) and now the carnage is spreading to core European countries like Italy and France. In kind, global stock markets have sold off to the point where more than half of global stock markets have experienced bear markets. As to be expected, global central bankers are responding and taking action. The big question all are asking now is, will their actions be enough to turn the global economic slowdown around or will more economic and financial market damage need to be done before central bankers act more forcefully?

Global Economic Train Is Coming Off the Tracks

Back in June I made the case that past monetary actions from global central bankers were finally being felt in global economies (“Global monetary tightening taking its toll, risks mount”). The monetary tightening programs of central bankers globally that began in late 2009 and carried over into 2011 were designed to bring down inflation and overheated economies. The risk with every monetary tightening mode is that central bankers go too far and drag their economies into a recession which is often associated with some type of financial crisis. This phenomenon is made clear in the following figure of past U.S. Fed tightening cycles and associated financial crises..."

at http://www.financialsense.com/contributors/chris-puplava/2011/08/12/economic-indicators-show-us-recession-as-early-as-next-month