The recession is over, it’s now a depression.

While the NZ MSM are blithering on about New Zealand coming out of the recession, let’s have a bit of a reality check shall we?

Fact: New Zealand’s economy relies solely on export.

From dairy, meat, wood to tourism, New Zealand relies on the global economy to keep its economy from going south. Other than that Real Estate has been a major driving force as real jobs were out sourced to third world countries.

Fact: The Global economy is tanking.

36 million people in the US are on food stamps. One in 8 adults and one in 4 children rely on food stamps to give them basic sustenance. That number is increasing by 20.000 people a day.

To give you some idea of how fast the unemployment is growing watch this little video:

Given that the US was driving the global economy with 7 trillion in spending every year that is a huge amount of poverty and people who won’t be spending money on what is essentially luxury exported from New Zealand.

Every camping ground a 150 km around Los Angeles is now inhabited by people who lost their homes and jobs in the last year. apart from a tent and some basic facilities they are homeless More than a 100.000 people are out at night on any given night being homeless and that’s in Los Angeles alone.

In the Bronx people earn a meagre $ 10 an hour if they still have a job.

It is now estimated that more than 50 million people in the US alone can not meet their basic requirements at one time or another per year.

The wars in Afghanistan and Iraq are absorbing huge amounts of money (How does 3 trillion sound) which is not spend to save the economy.

More than 600 banks in the US alone are “unofficially” in trouble and the debt crippling the US is now estimated at $ 12 trillion.

The UK is hurdling head long into the biggest depression since the “great depression”. and in rich Holland banks are collapsing, more people than ever are incapable of paying back loans etc and the house prices are going down.

And even stinking rich Dubai is on the verge of total financial collapse which spells huge problems world wide because all of Dubai’s holdings world wide will come down with the little kingdom’s demise.

If you think that China is going to be the next superpower think again. China’s wealth depends entirely on the “developed” nations need for crappy gadgets and if those nations don’t buy China doesn’t produce.

 

 

 

 

 

 

 

 

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