The Coming Double-Dip Recession

On June 1, stock markets in New York and around the world declined in levels not seen since summer 2010. Days and weeks immediately ahead will likely register even further significant market declines, as the obvious becomes increasingly evident: the US and other major global economies are once again on the cusp of a significant slowdown.

In a recent post a few weeks ago, entitled "Why March-April's Job Gains Will Collapse This Summer," this writer warned that the official hype about job recovery promoted by the business press and distorted US government data was grossly inaccurate. Behind the false jobs data lay a growing picture of imminent economic relapse. The US Labor Department's jobs numbers due this Friday, June 3, will likely further corroborate this view.

But the coming economic slowdown is not simply a result of the failure to create a sustained recovery of jobs in the US for the past two years of so-called economic recovery. Nearly all economic indicators have been deteriorating since the beginning of 2011, even though policy makers and Wall Street investors have been diligently ignoring the fact.

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