Sanctions Are Working! Recession Across the NATO Nations Reported
July 25, 2022 (EIRNS)—In addition to imposing depression crises and famines on developing countries, the NATO war sanctions and Federal Reserve rate rises have pushed the NATO economies themselves into economic contraction in 2022, which just yesterday was claiming only a “mild to moderate recession sometime over the next few years” to Wall Street and business economists. According to Standard & Poor’s, which publishes the so-called Purchasing Managers Indices, recession is on across the trans-Atlantic as of this week. Chris Williamson, the S&P executive in charge of these indices, had almost identical assessments of Europe and American economies.
“The eurozone economy looks set to contract in the third quarter as business activity slipped into decline in July and forward-looking indicators hint at worse to come in the months ahead.... Although [the contraction is] only modest at present, a steep loss of new orders, falling backlogs of work and gloomier business expectations all point to the rate of decline gathering further momentum as the summer progresses. Of greatest concern is the plight of manufacturing, where producers are reporting that weaker than expected sales have led to an unprecedented rise in unsold stock. Production will likely need to be reduced as companies adapt to this weaker demand environment, in turn widely linked to rising prices.”
“The preliminary PMI data for July point to a worrying deterioration in the economy. Excluding pandemic lockdown months, output is falling at a rate not seen since 2009 amid the global financial crisis, with the survey data indicative of GDP falling at an annualized rate of approximately 1%. Manufacturing has stalled and the service sector’s rebound from the pandemic has gone into reverse, as the tailwind of pent-up demand has been overcome by the rising cost of living, higher interest rates and growing gloom about the economic outlook.
“An increased rate of order book deterioration, with backlogs of work dropping sharply in July, reflects an excess of operating capacity relative to demand growth and points to output across both manufacturing and services being cut back further in coming months unless demand revives. However, with companies’ expectations of future growth slumping to the lowest since the early days of the pandemic, any such revival is not being anticipated.”
The Atlanta Federal Reserve Bank is still estimating a U.S. contraction of −1.6% in the third quarter. It now assesses business capital investment falling at a −13% annual rate; residential investment at a −10% rate; and personal expenditures per capita at roughly zero growth.