Global Economic Analysis Summary June 2012 (Part 1)

For nearly three years we have been discussing important global macroeconomic trends in order to assess the progress and risks of what has been labeled a global economic “recovery.” The illusion accounting for these improvements was created by a global release of trillions of dollars. One of the most prominent characteristics of this “recovery” is that it has been lop-sided, with advanced nations showing very little progress on many fronts. While Australia and Canada have fared relatively well, the U.S., U.K., Japan and Europe have continued to stall, despite claims made by officials and the media that a recovery is in progress. In contrast, emerging nations have performed particularly well. Asia and much of Latin America experienced a recession of short duration. Brazil spent the shortest time in the recession, followed by China and India. In fact, the emerging world has been largely responsible for pulling up the advanced world from the depths of the financial apocalypse. The entire mechanism has been fueled by the flood of capital from the Federal Reserve.