Wednesday, September 30, 2009

THE STATE OF THE REAL ECONOMY?





Politicos and Bankers would like us to believe that the world economy is in recovery.

The massive injections of liquidity have prevented a complete meltdown of the financial system - but that does not mean the economy is healthy.

The worlds' largest container shipping company has just announced changes to their sail regime in the Atlantic - and I believe our readers should take note: capacity between Europe and North Atlantic is cut by -19%; by 20% between Southern Europe and the South Atlantic; while traffic between Northern Europe and Canada has been reduced by 30%. See some of the ships being taken out of service here.

Bottom line - we may have stopped the bleeding but were not out of the woods yet.

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