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Double-dip fears across the West as confidence crumbles
The Telegraph ^ | 8/30/2011 | Ambrose Evans-Pritchard

Posted on 08/30/2011 1:55:54 PM PDT by bruinbirdman

The Western world is at mounting risk of double-dip recession after key measures of confidence collapsed in both the United States and Europe, with Germany suffering the steepest one-month fall since records began in the 1970s.

The US Conference Board's index of consumer sentiment in August plunged to the lowest level since the depths of the slump in 2009, falling to 44.5 from 59.2 in July. Future expectations fell even harder.

The drop was far steeper than expected and follows grim warnings over the weekend from Christine Lagarde, new chief of the International Monetary Fund, that the global crisis is entering "a dangerous new phase" .

The fund has slashed its growth forecast for America and Europe, according to a leaked draft of its World Economic Outlook. It has called on both the US Federal Reserve and the European Central Bank to stand ready for "further easing of monetary policy" - implying a fresh blast of quantitative easing (QE) by the Fed.

The minutes of the Fed's meeting in early August show that a number of committee members called for more "substantial" stimulus, suggesting that they pushed for further bond purchases or 'QE3'.

The Fed's so-called "Gang of Three" hardliners has already shrunk to two. Minneapolis Fed Narayana Kocherlakota said on Monday that deflationary pressures are building again. "Increasing policy accommodation might well be appropriate," he said.

In Europe the picture is as bad if not worse. The eurozone is already on the cusp of recession even before austerity bites in Italy and France, and bites harder in Spain, Portugal, Greece, and Ireland.

The European Commission's economic sentiment index (ESI) dropped below the contraction line in August. "A loose monetary policy seems to be the only medicine left to prevent a painful fall back into recession

(Excerpt) Read more at ...

TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: economy; free; money; printing

1 posted on 08/30/2011 1:55:56 PM PDT by bruinbirdman
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To: bruinbirdman

I look at the world and I notice it’s turning
While my guitar gently weeps
With every mistake we must surely be learning
Still my guitar gently weeps

2 posted on 08/30/2011 2:01:54 PM PDT by Flavius (What hopes for victory, Gaius Crastinus? What grounds for encouragement ?)
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To: bruinbirdman

AEP - Lord Doom - just doesn’t give up, does he? Well, with any (bad) luck he’ll be right one of these days.

3 posted on 08/30/2011 2:09:06 PM PDT by Moltke (Always retaliate first.)
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To: bruinbirdman
- The Original Double Dip -

Its two dips, two dips, two dips in one !

4 posted on 08/30/2011 2:22:32 PM PDT by Iron Munro (Muslims who advocate, support, or carry out Jihad give the other 1% a bad name)
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To: Moltke

Inspite all of the MSM lies, we are in a Depression.

5 posted on 08/30/2011 2:28:16 PM PDT by FightThePower! (Fight the powers that be!)
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To: bruinbirdman
DOUBLE DIP Photobucket
6 posted on 08/30/2011 2:48:39 PM PDT by Huskrrrr
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To: bruinbirdman

Our Savemart across the street closed down, what a shame. It was so convenient to run across the street to get a loaf of bread or a gallon of milk.

7 posted on 08/30/2011 2:56:11 PM PDT by diamond6 (Check out: and learn about the faith.)
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To: Flavius

You can go from boom to bust
From dreams to a bowl of dust...
Another lost generation.

8 posted on 08/30/2011 3:02:39 PM PDT by 21twelve (Obama Recreating the New Deal:
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To: FightThePower!; Moltke

We are indeed!


9 posted on 08/30/2011 3:37:26 PM PDT by LibLieSlayer (Certified Al Palin Hobbit Terrorist)
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To: bruinbirdman
Pass the caramel syrip!

10 posted on 08/30/2011 4:19:43 PM PDT by Young Werther (Julius Caesar said "Quae cum ita sunt. Since these things are so.".)
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To: Young Werther

This is NOT a double dip because we never had a significant upturn. This is just a continuation of a marxist assault on our capitalistic system. A double dip means that we had a recovery in there somewhere. Someone, other than the state controlled media, tell me when we had a recovery.

It’s all bs.

11 posted on 08/30/2011 9:10:14 PM PDT by Texas resident (Hunkered Down)
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To: 21twelve

who is the lost generation?....I don’t know if I feel worse for us or our kids.....they haven’t got a chance.....

12 posted on 08/31/2011 3:23:01 PM PDT by cherry
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To: cherry

Yeah - I’m 51. I’m thinking of my kids. But I haven’t given up the hope or the fight. My mantra is “Carter got us Reagan...” Although the slide started WAY back when, and Reagan was but a respite.

13 posted on 08/31/2011 11:19:17 PM PDT by 21twelve (Obama Recreating the New Deal:
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