The global economic crisis is staged: Unemployment skyrockets in the EU – Incomes crash in the USA – China ‘fully prepared’ for currency war – Billionaires, traders, and hedge funds are betting against economy, stock markets and currencies

Unemployment Hits New Record in Euro Zone, Personal Income Plummets in US 

Economic statistics released this week reflect a further weakening of the world economy and a further fall in the living standards of the international working class.

Reports on unemployment, manufacturing activity, economic growth and personal income in Europe, China and the United States point to an overall slowdown in economic growth and a rise in unemployment and poverty. They coincide with new moves by the European Union and the Obama administration in the US to slash social spending and public-sector jobs and wages. These measures mark an escalation of the class-war policies that have fueled the economic slump and already brought untold suffering to hundreds of millions of workers.

On Friday, the European Union statistics agency Eurostat reported that unemployment in the 17-nation euro zone hit a new record in January of 11.9 percent, up from 11.8 percent in December. For the 27-nation European Union as a whole, the official figure for January was 10.8 percent, up from 10.7 percent the previous month.

There were nearly 19 million unemployed people in the euro zone, an increase of 200,000 from January, according to official figures. In the whole of the EU, there were 26.2 million jobless workers, 222,000 more than in December. The real situation is even worse than these staggering figures indicate, since they do not take into account millions of people who have dropped out of the labor market.

Alasdair Macleod: Europe is in Worse Shape Than Everyone Thinks

EU governments are getting desperate
Just in case Lagarde (and everyone else except for the Germans, who have a very unpleasant habit of telling the truth), was lying about that whole “no currency war” thing, China is already one step ahead and is fully prepared to roll out its own FX army. According to China Times, “China is fully prepared for a looming currency war should it, though “avoidable,” really happen, said China’s central bank deputy governor Yi Gang late Friday.” We look forward to the female head of the IMF explaining how China is obviously confused and that it is not currency war when one crushes their currency to promote “economic goals.” Of course, that same organization may want to read “Zero Sum for Absolute Idiots” because in this globalized economy any attempt to promote demand (by an end consumer who has no incremental income and stagnant cash flow) through currency debasement has no impact when everyone does it. But then again, this is the IMF – the same organization that declared Europe fixed in 2009, 2010, 2011, 2012, 2013 and so on.

Urgent! Hedge Funds Preparing For Market Sell-Off.

Some of The Biggest U.S. Hedge-Fund Investors Score Big by Betting Against Yen

Some of the biggest U.S. hedge-fund investors have made billions betting against the yen, exploiting Japan’s determination to weaken its currency and boost its economy.

World Plunges Into Recession

Fed’s Evans – “I don’t think we are anywhere near the end of the program”

“It is in fact that specter of repeating the Japanese experience that now keeps me up at night,” Evans said.


Peter Schiff predicts: US Debt Crisis Will Be Worse Than Europe’s

Druckenmiller: Storm worse than ’08 coming as seniors steal from youth

Imminent stock market crash – Get READY


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    Of course the depression is completely staged.

    Low interest rates DO NOT help the economy.

    Low interest rates only encourage risk-taking by the same dead-beat loser-banks that pushed the economy into this mess, as before with super-low interest rates. This dead-beat loser risk-taking induces yet more -failure- in the economic pipeline, failure the FED is now buying up in extravagant asset purchases. Nothing is improving with ZIRP. The hot and cold running bailouts are completely continuous now.

    We see this going on everywhere in the economy. The depression-hole dug by ZIRP is only being dug deeper with ZIRP.

    Savers typically spend the interest they earn on their deposits. This interest dividend money is truly disposable income. Savers typically are not risk-takers though. Savers spend money on building rock-solid economic engines that create jobs and efficiency. ZIRP promotes neither.

    A non-ZIRP policy is the only way to grow the economy back into normality. An economy is like an organic process. It must grow due to an underlying stability.

    Massive infusions of cheap money, are preventing any real growth, because there is no stability in running the printing presses day and night. It all can and will end. The ZIRP “recovery” reality is a -Sword of Damocles- hanging over the current economy. And everyone knows it. When ZIRP ends, the charade of recovery is over.

    Businesses rely on getting a reasonable, market rate of return on their deposits. When the value of money is allowed to seek its own level, the interest on the “float” in a business can pay for a lot of investment and for hiring new employees. But this float-interest money is being stolen by the FED’s ZIRP.

    In keeping interest rates low the FED has in effect stolen more than a
    trillion dollars in interest from savers, and several trillion dollars in interest from businesses large and small.

    Meanwhile trillions in ZIRP money has been lavished upon banks that should have gone bankrupt, banks that continue to fuel the insolvency of an ever-wider spectrum of the economy by promoting risk.

    And the resulting ZIRP-induced Inflation makes the risk even riskier.