19 Reasons To Be Deeply Concerned About The Global Economy As We Enter The 2nd Half Of 2013

"The following are 19 reasons to be deeply concerned about the global economy as we head into the second half of 2013...
#1 The velocity of money in the United States has plunged to an all-time low.  It is extremely difficult to have an "economic recovery" if banks are not lending money and people are not spending it...

#2 The fall of the Egyptian government threatens to bring even more instability to the Middle East.  In response to the events in Egypt, the price of oil rose to more than 101 dollars a barrel on Wednesday.
#3 Every time the average price of a gallon of gasoline in the United States has risen over $3.80 in the past three years, a stock market decline has always followed.
#4 As the world becomes increasingly unstable, massive citizen protest movements have been rising all over the globe...

The protests have many different origins. In Brazil people rose up against bus fares, in Turkey against a building project. Indonesians have rejected higher fuel prices, Bulgarians the government’s cronyism.
In the euro zone they march against austerity, and the Arab spring has become a perma-protest against pretty much everything. Each angry demonstration is angry in its own way.

#5 The European sovereign debt crisis is flaring up once again.  This time it is Portugal's turn to take center stage...

From Greece to Cyprus, Slovenia to Spain and Italy, and now most pressingly Portugal, where the finance and foreign ministers resigned in the space of two days, a host of problems is stirring after 10 months of relative calm imposed by the European Central Bank.
Portuguese Prime Minister Pedro Passos Coelho told the nation in an address late on Tuesday that he did not accept the foreign minister's resignation and would try to go on governing.
If his government does end up collapsing, as is now more likely, it will raise immediate questions about Lisbon's ability to meet the terms of the 78-billion-euro bailout it agreed with the EU and International Monetary Fund in 2011.

#6 It is being projected that Italy will need a major EU bailout within six months.
#7 Bond investors are starting to panic.  In fact, even prominent firms such as Pimco are seeing investors pull massive amounts of money out right now...

In June, investors pulled $9.6bn from Bill Gross’s flagship fund at Pimco, the largest single month of outflows at the fund since Morningstar records began in 1993, the investment research firm said.

The outflows came after investors pulled $1.3bn from the fund in May, which marked the first outflows since December 2011.

Overall, a whopping 80 billion dollars was pulled out of bond funds during June.
#8 Central banks are selling off staggering amounts of U.S. Treasury bonds right now.
#9 U.S. mortgage bonds just suffered their largest quarterly decline in nearly 20 years.
#10 We continue to buy far more from the rest of the world than they buy from us.  The U.S. trade deficit for the month of May was 45.0 billion dollars..."

at http://theeconomiccollapseblog.com/archives/19-reasons-to-be-deeply-concerned-about-the-global-economy-as-we-enter-the-2nd-half-of-2013