The world economy

Most of what we hear about in the media is about “economic recovery”. The truth, however is very different as is indicated by the state of world shipping and the European car industry.

The stock market and commodites took a big hit this week on news that the Fed might stop printing money, and there is talk of yet another crisis in Greece.

Meanwhile, those in the know are buying gold – that should tell us something.

Here are some links provided by Rice Farmer.

Economic news - 21 June

German shipping companies expect industry shakedown

"Surging overcapacity amid weaker global trade is raising the fears among German shipping operators of a big market consolidation, a survey has found. The German captains of the industry seek a lifeline in new alliances."

July GRIs are ‘last chance’ for shipping lines to stem severe losses

"With the next round of general rate increases on the Asia-Europe trade set to be introduced in 10 days, new analysis has painted a dismal picture of the financial health of some of the mid-sized carriers on the trade."

Global shipper TMT files for bankruptcy protection

Everything Is Being Sold

Euro zone business slump eases but second quarter contraction likely: PMI

European Car Sales Hit 20-Year Low; Don't Worry, Things Have Stabilized

IMF to Suspend Aid Payments to Greece Unless Bailout Hole Plugged

Is Greece About to Implode All Over Again?

Greek coalition fails to agree on ERT deal

"Greece's governing coalition has again failed to agree on how to resume transmissions by state broadcaster ERT, shut down by the government last week. Evangelos Venizelos, leader of junior partner Pasok, said there was now 'an issue regarding the very existence... of the government'."

"It's A Massacre" - Each Day 134 Retail Outlets Close In Italy

Chinese, U.S. factories struggle, Europe still in slump

Cash Squeeze in China, Interest Rate Swaps Rise Most in 22 Months;

China's Credit Bubble About to Pop; Shadow Banking Crackdown

How China Fudges Its Numbers

Hedge Fund Manager Sees Stock Market Crash in China

Chinese Banks ‘On The Brink’ as SHIBOR Surges: BAML

The Bloom Has Fallen Off The Brazilian Rose

Shadow Economy Share at 20% of GDP (Estonia)

Arab Spring Redux in Most Emerging Markets, Losing Their Financial Religion

Homeless take over abandoned houses in Spanish building complex

EU Twists the Screws on Spain With Inane Requests

IMF calls for urgent steps on Spain unemployment

Brazil stocks, currency plunge in ‘crisis’ day

Gold Prices Collapse As Everyone Remembers It’s Just Yellow Metal: Blodget

This is just absurd. Gold is not "just yellow metal"; and it certainly is true money. History bears witness to this. Do not be swayed by short-term changes in market prices, and do not be deceived by those who try to persuade you to prop up stock prices by sinking your nest egg in froth. (Disclaimer: My statements should not be construed as investment advice, blah, blah, blah). Meanwhile, Marc Faber is buying gold. -- RF

The Mounting Losses in Bond Long-Term Funds, Adding Injury on Top of Injury

"The US Treasury 30-year bond, the so-called Long Bond, is proving to be a widow-maker to those who bought a couple of months ago. Most investors did not want to hear that a mere 1% rise in interest rates across the board could wipe out 15% or more of the face value of their investment."

EU to decide who pays when banks fail

"The European Union will seek on Friday to forge rules to force losses on large savers when banks fail, a sensitive reform that could shape how the euro zone deals with its sickly banks."

Canada’s youth at risk for chronic unemployment