{"id":37751,"date":"2013-04-22T13:32:41","date_gmt":"2013-04-22T17:32:41","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37751"},"modified":"2013-04-22T13:32:41","modified_gmt":"2013-04-22T17:32:41","slug":"the-recovery-that-never-happened","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/22\/the-recovery-that-never-happened\/","title":{"rendered":"The Recovery That Never Happened…"},"content":{"rendered":"

By Bill Bonner<\/strong><\/p>\n

Gold seemed to be stabilizing at the end of last week. Commodities
\nremained weak. Steel has fallen 31% this year. Brent crude is off 17%
\nsince early February. And copper is down 15%.<\/p>\n

Copper is the metal you need to make almost anything \u2013 houses, cars,
\nelectronics. When it goes down, it generally means the world economy is
\ngetting soft.<\/p>\n

At the start of last week, the conventional analysis of the gold
\nsell-off was that the central banks’ efforts to revive global growth
\nwere working. The feds had the situation under control. So who needed
\ngold?<\/p>\n

By the end of the week, it appeared that gold \u2013 and commodities \u2013 had sold off for the opposite reason: because central banks’ money printing<\/strong><\/a> wasn’t<\/em> working and the world was slipping further into a period of slow growth and barely contained depression. From Business Insider:<\/p>\n

Recent U.S. economic data has been
\ndisappointing, especially in the realm of housing, which is what the US
\nbull case is all about.<\/em><\/p>\n

In Germany, dubbed the strong arm of Europe, economic sentiment just fell.<\/em><\/p>\n

Where’s the Growth?<\/h3>\n

And growth has begun to slow in China \u2013 still considered a global
\ngrowth engine \u2013 as it continues to crack down on corruption, a property
\nbubble and a bloated shadow banking business. China’s plan to shift its
\neconomic model away from exports to domestic demand-led growth has also
\ncontributed to the lower growth rate.<\/p>\n

In the US, building permits are down… and foreclosures are up.
\nThere is no renaissance happening in manufacturing. Only half of the new
\njobs expected showed up in March. Retail sales are down, and consumer
\nconfidence is off.<\/p>\n

And in Britain, the unemployment rate is rising. Retail sales are
\nfalling. And figures coming out this week will probably tell us that the
\ncountry is in a triple-dip recession.<\/p>\n

Here’s Ambrose Evans-Pritchard in The Telegraph<\/em>:<\/p>\n

It is becoming ever clearer that the roaring boom in global equities since last summer has priced in an economic recovery that does not in fact exist<\/strong><\/a>.
\nThe International Monetary Fund has had to nurse down its global growth
\nforecasts yet again. We are still stuck in an old-fashioned trade
\ndepression, with pervasive overcapacity in manufacturing plant and a
\nrecord global savings rate of 25% of GDP…<\/em><\/p>\n

As you can see from the chart below,
\nthe divergence between stock markets and the Deutsche Bank index of raw
\nmaterials is astonishing to behold, so like the pattern in early 1929…<\/em><\/p>\n

\"S7P<\/p>\n

The US economy is growing below the
\nFed’s own “stall speed” indicator. Half a million people fell out of the
\nworkforce in March. Retail sales fell in March. So did manufacturing…<\/em><\/p>\n

“There is a threat of deflation almost everywhere. A lot of central banks will have to follow the Bank of Japan<\/strong><\/a>, whatever they say now,” said Lars Christensen from Danske Bank.<\/em><\/p>\n

The era of money printing is young yet. Gold will have its day again.<\/em><\/p>\n

Regards,<\/p>\n

\"Bill<\/p>\n

Bill<\/p>\n

To learn more about Bill visit his Google+<\/a> Page or Bill Bonner’s Diary<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Bill Bonner Gold seemed to be stabilizing at the end of last week. Commodities remained weak. Steel has fallen 31% this year. Brent crude is off 17% since early February. And copper is down 15%. Copper is the metal you need to make almost anything \u2013 houses, cars, electronics. When it goes down, it … <\/p>\n

Continue reading “The Recovery That Never Happened…”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37751","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37751"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37751\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}