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CTV NewsNet just had a guy on saying there will be another global recession in 2013 - in two years - and says it's another 'perfect storm' about to happen, even after governments have thrown trillions of dollars at the last recession. This is going to be interesting, because the USA has reached its maximum debt burden of $14.3trillion already, and Obama has been lobbying to get that debt ceiling lifted.
2013 will see the media finding ever more imaginative ways of sugar coating what they can no longer hide with their incessant chatter during the past few years of greenshoots, thousands of mcjobs being created to replace the hundreds of thousands of disappeared manufacturing and government sector jobs, and the sham recovery of the elitist bond market through trillion dollar boondoggle QE schemes.
I think this is the source for the CTV story: In 2013, beware the perfect storm: Dr Doom
SINGAPORE - A "perfect storm" of fiscal woe in the United States, a slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy, New York University professor Nouriel Roubini said.
There's a one-in-three chance the factors will combine to stint growth from 2013, Prof Roubini, who predicted the global financial crisis, said in an interview in Singapore.
Other possible outcomes are "anaemic but okay" global growth or an "optimistic" scenario in which the expansion improves.
"There are already elements of fragility," he said. "Everybody's kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest."
Elevated US unemployment, a surge in oil and food prices, rising interest rates in Asia and trade disruption from Japan's record earthquake threaten to sap the world economy.
Stocks worldwide have lost more than US$3.3 trillion (S$4.1 trillion) since the beginning of May, and Prof Roubini said that by the middle of next year, anemic could start worrying about a convergence of risks in 2013.
"We're still running over a trillion-dollar budget deficit this year, next year and most likely in 2013," Prof Roubini said on Saturday. "The risk is at some point, the bond market vigilantes are going to wake up in the US, like they did in Europe, pushing interest rates higher and crowding out the recovery."
Closed for length.