The longer fiscal pain continues, the closer an ultimate day of reckoning approaches. It'll arrive disruptively. People take only so much before reacting.
Consumers can't make ends meet. Inflation-adjusted median household income is declining. Extremes in income dispersion usually foreshadow financial/economic/market trouble.
Global economies are weak. Deteriorating conditions are accelerating. Trouble assures more of it.
Consumer spending is slowing. So is business inventory accumulation. Small business confidence is falling. Operating revenue forecasts portend major slowing.
Productivity is collapsing. Currency wars exacerbate conditions. Lower government spending comes when more is needed. Higher taxes don't help.
Polyannish forecasts abound. They've been wrong four straight years. Talking head economists lie. They're well paid to do so.
EU leaders haven't accepted reality. Its two biggest pillars are troubled. France suffers from lack of competitiveness. It's economy began to implode. Wealthy business people are leaving. Investment's drying up fast.
Germany's in protracted slowdown. Eurozone troubles impact it greatly. Warning signs abound. Europe resembles a house of cards. Cronyism and fraud replaced trust and transparency.
Reality is swept under the rug. No one gives a damn. Spain's Prime Minister Mariano Rajoy just warned "There are no green shoots. There is no spring."
Its entire banking system is troubled. So is its sovereign debt. It managed 2012 by tapping 90% of its social security fund to buy it. Over 200 billion euros in new debt must be financed. How remains to be seen. Banks are net sellers. Investors are wary.
Default looks more likely. Doing so will be multiples greater than Lehman's collapse. Things look likely to get ugly. When is anyone's guess. Debt problems aren't solved by adding more of it.
Economist John Williams predicts a massive May dollar sell-off. Other countries will dump them for safer currencies. Collapse he believes may follow.
Washington has weeks to get its fiscal house in order. Williams calculates FY 2012 deficit at $6.9 trillion. That much more was spent than collected in taxes. America is bankrupt he says.
Real growth hasn't occurred for five years. Prior to 2008's financial crisis, consumers compensated for declining incomes by taking on debt.
Banks now freeze credit. Housing values are stagnant. Most Americans have no new revenues sources. Polls show they expect to spend less. It's their only viable choice.
Nothing ahead looks positive. Global slowing exacerbates crisis conditions. Force-fed austerity assures it. Money printing madness delayed day of reckoning time.