The Long Recession

The CPI is corrupted, and the developed world has been in decline for a long time. 

Ed Dowd Appears on Sky News Australia

Ed Dowd has a way of succinctly describing the coming global financial collapse, coming to your country very soon.

 

Recession and the Upside

Due to the coronavirus, oil output, general stupidity on the part of governments regarding their levels of debt, private companies borrowing too much and whatever else; we are now in a worldwide recession. This will likely last the entire year. People are going to lose their jobs, they don't deserve to but companies, especially large companies, will use this event to shed staff. It's going to get worse before it gets better, let's put it that way.

Is there an upside to any of this, apart from the obvious, plenty of bargains for the cashed up investor. The main upside is all of these silly Green initiatives are toast. I'm talking about all those things the taxpayer funds, whether it is kerbside recycling or electric vehicles. Consumers are not going to be spending, they'll have to take the cheapest and most efficient option, out goes so-called Green. Green is not really Green I hope you realise, the whole thing is an exercise in fleecing you, me and everyone else. The only people who win are the crooks coming up with their silly ideas.

In the not too distant future, soon after the airlines get their bailouts (I hate to say it, they likely will get their bailouts), the Green companies will be crying to survive. Don't let them get access to your hard earned dollar.

More Gloom

Adding to my previous post, New Zealand is now impacted in the education sector. Up to a half of all international full fees paying students in the country come from China. For now that has all stopped with many students stranded, having paid for courses and accommodation but unable to travel. I think we can safely say that NZ will be experiencing a recession very soon, as well as the rest of the world.

Doom

I've been a prophet of doom for some time now, mainly because the world economy has just been bumping along the bottom. Now the real slowdown has started, kicked off by this new virus from China, called the Coronavirus.

In NZ this has had the immediate effect of shutting down tourism, but also log exports. That's because there's no-one in China at work ready to handle the shipments. Expect this situation to worsen across a whole range of goods.

Maybe people will wake up and stop relying on China for everything. If we had our own industry, such as milling our own timber, then this kind of event would have a minimal effect.

Canaries Roosting On The Backhoes

Following on from my earlier post about Caterpillar's troubles, JCB now report a huge plunge in sales.

>>Click Here<<

Quote:-

“In the first six months of the year, the market in Russia has dropped by 70%, Brazil by 36% and China by 47%,” said JCB CEO Graeme Macdonald in a press release.

Yeah, not so good.

Update on Caterpillar. Their share price continues to fall, from a high of just over $106 within the last year, they're now at $69.39 as at the close of trading in New York a few hours ago. That's a drop of about 34%. Caterpillar now fall into the buy territory with a P/E lower than 15. 


(Note: These opinions are information only and do not constitute investment advice. If you need investment advice on these stocks or anything else for that matter, talk to your recognised and professional investment adviser. Better still, do your own research and act on it confident in your own ability.)