Free Markets, Free People

So how is the global economy faring?

Not so hot.  Europe:

Activity at European businesses hit a near three-year low in May, according to a survey by Markit.

Its index, based on a survey of purchasing managers in the manufacturing and service sector, fell to 45.9 in May, a 35-month low.

In response, the euro fell to $1.2515 against the dollar, a 22-month low.


"The flash PMI figures for May look horrible and provide a clear warning that eurozone GDP will almost certainly show a contraction in the second quarter after stagnating in the first quarter," said Martin Van Vliet, from the bank ING.

"It’s not good," said Peter Dixon from Commerzbank.

"The German ones were particularly disappointing, as we had been expecting some more buoyancy.

"It clearly indicates that the evaporating sentiment that we have seen in recent weeks, as the Greece crisis has intensified, is having a big impact on the economy."

A separate report from Germany’s Ifo showed that business confidence fell sharply in Germany in May.

And China?

China’s manufacturing activity contracted at a faster pace in May as conditions for exporters worsened during the month, the preliminary findings of a survey by HSBC showed Thursday. The "flash" reading of the manufacturing Purchasing Managers’ Index dropped to 48.7 in May from a final print of 49.3 in April, HSBC said. A measure below 50 in the survey indicates deterioration, whereas one above that figure shows an improvement. The flash reading is typically based on 85% to 90% of the total responses in the monthly survey.

The big red kangaroo is almost to the car.

Meanwhile, in the US, we’re focused on … politics.  Silly politics



Twitter: @McQandO

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11 Responses to So how is the global economy faring?

  • I like they they wrote the first sentence …

    China’s manufacturing activity yada yada yada at a faster pace

    It sure wouldn’t be hard to read that wrong.

  • “Democrats had taken comfort for months in the Republican Party’s seeming inability to get behind Mitt Romney, Obama’s healthy lead in the polls, and equally healthy job growth. And for a few, fleeting, moments, Democrats thought the election might just be easy”
    I just had to cite that.  Healthy Job Growth.  Where?  India?
    Nothing like pretending to be critical, and tossing in a couple of (lies) talking points at the same time.

  • No need to fear the big red kangaroo because all of these problems were caused by Bush (or some such nonsense).
    I have never seen so much absolute utter BS come from one politician (and his minions) ever before.  We all thought that it would be ugly, but this really isn’t ugly in the classic sense, the level of concentrated lies and distortions is at a new high, especially this early in a campaign.
    I come to conclude already that this is the plan.  Fill the media with so much BS that nobody will be able to sort it all out before the election.  The 90% of American people who spend about 12 minutes a year taking in politics will come out believing that Malcolm X was right.

    Ya been took! Ya been hoodwinked! Bamboozled! Led astray! Run amok!

    • Really…???  You’re surprised that Obama lies…?!?!?  Come now.
      The only thing that would surprise me would be that people believe the Obamic lies any more.  And SUCH whoppers…!!!

      • The big lie often works.  And they intend to demonstrate that.  Again.

  • There is a real pressing problem here with the world economy.
    America has grown up believing that we are the cause of all good and bad in the world.
    Well .. it ain’t so.  Sure, we do our part for good and bad, but the march of globalization seems to have gone everywhere except into our brains.
    We now have a much more limited set of tools to help fix America.  Anybody who blames Bush for all of this is a Neanderthal or worse.  I mean, who in their right mind thinks that the hated evil Bush was able to get most, if not all, of Europe and China to bloat their real estate economies just on his own.   Frankly, they give the man too much credit, especially when he is also called stupid.
    And the solutions to date have done virtually nothing to solve the problem.  In the end of 2008, we were treated to a new term … “toxic assets.”  These mostly were those MBS-s (Mortgage Backed Securities) (all that AIG stuff was a second domino).  These toxic assets are still out there probably better than 85% of them are still in the same shape they were in 2008.  Attempts by this Administration to slow up foreclosures and such have only prolonged their eventual resolution.
    “Tulip Mania” of 1630s was mostly contained to the countries around the Dutch, the current aftermath of the “Bank Panic of 2008” is global.

  • Y’all!  Politifraud has correctly assigned all the spending to George W. Bush.  Obama has not only not spent that much, when you factor in inflation, he’s actually decreased spending.

    • “Preference cascade”—it is a cool concept, and one we may be seeing form in reality WRT Obama.
      Telling the BIG LIE has a HUGE risk, looker…you eventually threaten the ability of even your myrmidons to string along with it.  You strain the cord.
      NOBODY really believes that Obamic lie about cutting the rate of spending.  No.  Body.

      • Awwwww, I think you underestimate the ignorant intelligent lefty Obamabots.
        At this point if they don’t gamble on this there won’t be another hand for them, they’re all in.   It’s Gotterdammerung (spell check has suggested I mean, perhaps, Rotterdam….) if he loses.