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The global economy is so intertwined that what happens in one country affects many others. There will be certain things that affect all countries in 2010 and other elements that are more isolated. In the U.S. you have to look at what is gone in order to predict what the economy will look like. (NEWS proof) First of all, jobs are gone. Next, that forces more people to spend on their credit cards since they don’t have money coming in. Therefore, the next thing that will disappear is credit. People will drive their credit cards to the max and then just not be able to pay and walk away. They will do this as long as possible until they can’t get credit cards anymore. This further hurts the credit card issuers, the people who do pay, and negatively affects the U.S. economy. Once there are no credit cards to be had by the individual, consumerism will be gone next.
(NEWS proof) People will also walk away from their negative-equity homes rather than pay for them any longer as the banks continue to dump their inventory at rock-bottom prices. These people will never be able to get a mortgage loan again, further hurting the construction and real estate industries. It is a domino effect that starts with loss of jobs, loss of credit and then consumerism grinding to a halt. These three things together mean that growth is gone also.
(NEWS proof) No jobs, no credit cards; no credit cards, no spending; no credit, no consuming. It’s a very simple formula. With no improvement in jobs being seen for several years we predict that the U.S. economy will continue to falter and drag down the spirit and hopes of the country. In Europe there will be two or three countries that possibly have to default on their debt. Europe’s exposure was shown recently with the debt repayment troubles in Dubai. The Dubai issue will raise its ugly head again in several countries over the next few months showing just how much the world’s economies are intertwined. Regionally, Europe is interconnected with many parts of the world outside of Europe and over-exposure and over- investment when times were booming will come back to hurt the countries involved.
(NEWS proof) Most affected will be the U.K., Hungary, Spain, Italy, Portugal, Ireland, the Czech Republic and some of the Balkan Countries. Like Iceland, and now with economic troubles in Greece, the vulnerability of countries will be exposed when issues such as the Dubai default make the news. The continuing defaults on real estate, especially over-built commercial projects will start to pick up steam and no countries will be spared. The global economy in Asia, with the exception of Japan who will see a succession of mini-recessions, will continue on an upward trajectory. With annual growth rates 2 – 5 times the U.S., Asia is coming into its economic dominance. While America continues to struggle for the next 5 – 10 years or more Asia, especially China, will emerge as the world’s economic force to be dealt with. India’s economy will also show great growth. China’s challenge is to keep up manufacturing output while instilling political and societal stability. Doing this, the Chinese will be able to dominate the world’s economy in 10 years or less. In fact, China will have the opposite problem of the U.S. and need to have controlled growth rather than runaway growth – the U.S. needs any growth. What all the countries in the world have in common for 2010 with regards to their economies is that (NEWS proof) food and energy prices will go up. Real estate prices will come down as the second and third waves of foreclosures hit around the world. (NEWS proof) To compensate for lack of all kinds of incoming revenue that is attached to real estate development and building licenses, taxes will go up in just about every country putting a further strain on citizens already strapped for cash.
QUESTION: Explain the overall essence of your message today?
ANSWER: People need to understand that their country’s problems are greatly intertwined with other countries around the world. The global economy system needs to be fixed at a high level which will take much cooperation between all countries. The people will see that something that happens in Dubai can affect them and their local bank or their government.
QUESTION: Why do people need to know this information right now?
ANSWER: People hear how things are getting better or at least getting worse at a slower pace. This is not good news and cannot go on forever. Things getting worse means they are getting worse. Good news will come when there is a positive number for jobs and real estate prices start going up, and businesses can borrow money to expand, thereby hiring people again. Don’t think that the worst is now over as you may wake up some morning and get another Dubai surprise.
QUESTION: What will be the solution for the credit card issuers in addressing the mass default of people on their credit cards?
ANSWER: There will be higher fees and interest for those who do pay their credit card bills. Also, you may see limitations on how much you can charge in a month or a week in order to catch the worst abusers and cut them off early. Also, the issuers can charge vendors more money for fees to address any defaulters.
QUESTION: What will people do when they run out of credit card limits and don’t have jobs?
ANSWER: The ranks of the welfare programs will increase greatly. More and more people everyday now are on food stamps, although you may not hear about it. Government programs can only do so much. People want and need jobs. They want to feel like a valued part of society. Many will just give up and commit suicide, especially fathers who can no longer provide for their families.
QUESTION: Will this be worse than the great depression?
ANSWER: It will be worse in the sense that there are many more people on earth now and this economic turmoil is global.
QUESTION: Will Europe’s problems be as bad as the U.S. in 2010?
ANSWER: Some countries that were not as stable economically over the past 10 years in Europe will suffer greatly. At least many of the European countries do not have several wars to fund.
QUESTION: How will China be able to keep up the growth pace through manufacturing things for the rest of the world when the rest of the world is struggling?
ANSWER: China is becoming the place where everything is made. With consumers demanding lower and lower prices for everything, China and other Asian countries will be the source for those inexpensive goods. Things have to be made somewhere, but European countries and American companies cannot afford the domestic investment needed to build new plants or refurbish old ones. There is just no money being loaned. Therefore, people all over the world must get used to the fact that everything they pickup will say, “made in China.”
QUESTION: With energy and food prices going up and real estate prices continuing to go down along with more and more job losses – what’s the good news?
ANSWER: The good news is that people will start to reconnect as groups and support each other. Maybe growing their own food or generating their own energy. Basic survival skills will come at a premium. Farming will be a growth industry. Families and friends will get together in a communal-like situation to share food, money. and transportation. Basics are never new and you may see the lifestyle of the Amish as the ideal model.
QUESTION: How does an individual apply this information to their life at this time?
ANSWER: Again we have warned that you will never see times in your life like the last 20 – 25 years of economic growth. This is not bad. We predict that the world will be a more loving place when a money-driven society without a conscience becomes a consciousness-driven society with a lot less money.