is just the tip of the iceberg. When you adjust for inflation (even the Fed's pure rot, hedonically twisted-to-hell numbers), the US economy is already (actually it never left) in 'recession'. The EU is mostly deep into it already (and for all the talk of China, the EU is the US's biggest trading partner).
The Fed has already announced QE3, which will further erode the US dollar, and further crush the purchasing power of the 99%. It will also drive up equity prices, so the Wall Street boys will be singing 'happy days are here again' when in reality they are actually Nero, fiddling as Rome burns.
If the big banksters OR the other side of these CDS's (again, imagine having to bail out CalPERS) need trillions in bailouts, the level of money printing will set a hyper-inflationary course that will explode within a 2 year period, MAX, if not much sooner. This will then ne floowed by a delationary depression the likes of which will make the 1930's seem like a cakewalk.
ALL the governments in the world have been kicking the can down the road. There soon will be no more road to kick upon. I have been fairly accurate in my timeframe gauging of this since 2006, and especially since 2007, when Countrywide went belly up, followed by Northern Rock in the UK.
I said at the time that if the derivative debts were not shredded, the 20 or so largest private banks globally liquidated, and the central banking systems of the globe were not nationalized, (with a debt jubilee included), then you would eventually have multiple currency extinction events by 2015, and a nightmarish outcome (in many parts of the world civilisational collapse and/or semi-global wars started as power presevation projections) by 2017.
The US is already undergoing systemic underming of its dollar as the global reserve currency. This status is all that keeps the empire afloat. China, Russia, India, Brasil, Iran, soon even Japan, etc, are all cutting bi-lateral trade deals in their OWN currencies (or gold for oil, like India and Iran). The US will (with the banksters in utter control as they are of the Fed and the government, thus the military) go to war to stop this at any cost. Ask Sadam amd Ghaddafi about this (both were attempting to pull of of the petro-dollar lock-up and were invaded within months).
Hard times are coming all our myriad ways.
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