Inquiring minds are watching a short video on the OECD Global Economic Outlook.
- Recovery that began in 2009 has faltered
- Global economic outlook has deteriorated significantly
- US is slowing
- Japan reconstruction following the Tsunami has boosted growth [more broken window silliness]
- Europe headed for recession
- Emerging market growth is moderating
- Confidence dropping sharper, trade growth weakening
The central OECD forecast is “muddling through” with US growth recovering slowly. Europe allegedly will enter a “minor recession”
Let me opine, that global “muddling through” is the absolute best one could conceivably expect and even that would take a near-miracle.
Is “muddling through” what the stock market is priced for? I think not. The idea Europe will have a “minor recession” is nonsense in and of itself.
Reflective of the Keynesian clowns they are, the OECD jumps on the fiscal stimulus idea, ignoring the fact we are in this mess precisely because of inane monetary stimulus by the Greenspan Fed accompanied by inane fiscal stimulus policies globally.
The Keynesian clown prescription is always more-more-more until and even after things blow sky high.
Mike “Mish” Shedlock
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