The international analyst are all saying that the only growth this year will come from emerging markets.

They have no choice but to move ahead without the U.S. It will be down for years. The FED in a recent meeting said, “no net new jobs for five years.”

We have nothing to base a real economic recovery on and won’t have for years. The Consumer was 70% of GDP due to debt spending. GDP (in real terms) will be falling as will consumer spending until it is near “normal” which is about 62-65% of GDP, but a lower GDP.

No matter what the government does, it will hurt because we have eroded the foundation of our economy for decades and now are paying the price.

2 billion middle class consumers in the world have replaced the U.S. consumer and they are growing by the millions each month. They are buying more cars, computers, cell phones, food, clothes, etc. More and more trade is going on between emerging markets.

India grows by 47 millionaires a day and a billionaire a month while our number of millionaires is shrinking. This is the largest economic power shift the world has seen since we took power from England.

It may be slow but, it will go on. It could have a correction that lasts months but, the emerging markets will have to move forward without the U.S. and most developed nations. It isn’t just the U.S. that is in trouble.

Europe is complaining they can’t get new companies started in Europe due to the requirements China puts on them. Think about that. They are moving to China at such a rate they are complaining about the time it is taking. It isn’t, just China, of course. Companies are moving to many other nations from the developed nations due to many factors. But, one important one is that they believe the consumers they will be selling to will be in the emerging markets in greater and greater numbers, every year.

JanPaul

Related Posts:

• The whole world is focused on China and the emerging markets.
• There are now about 2 billion middle class consumers in the world.
• Should you play this rally?
• Sign of bad economy: December consumer spending data is worse than expected.
• China’s nowadays is similar to the 1920’s and 1930’s.

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