The world countries of the G-7 are all in a downward spiral as the US economy takes its turn at roller coaster stock markets all countries are feeling the effects.
Japan’s market is down 11 percent, Tokyo’s Nikkei recorded the biggest one day loss in 21 years. Canada, Germany, France, Italy Japan and the UK are all in recession. Russia fell over 29 percent in its markets and Canada predicts an 11 billion dollar shortfall this year.
Consumers confidence is falling and baby boomers are especially wary of spending now as they hunker down for the winter and save which will also negatively affect the markets. These volatile times are forcing consumers to watch their pennies and heading into the holiday season does not bode well for retailers who will cut prices to sell off inventories. Hopefully the high prices on food, and services that went up during high price oil will also return to lower values as oil prices spiral downward.
Canada’s Toronto Stock Exchange is experiencing the same roller coaster ride as the NYSE and the Canadian economy is expecting worse losses due to falling oil prices.
Oil has dropped over 50 percent in the last few weeks of prices which reached $ 150.00 only two months ago. With oil prices below $70.00 a barrel oil production plans are being cut also. The largest independent and biggest oil producer in Canada which is EnCana is delaying plans to split its company, and two major oil facilities which were planned to be built are being canceled.
The energy sector has gone bust and the boom is over which drops the dollar as oil prices drop in Canada.
This brings bad news for the Alaska pipeline development that Sarah Palin keeps pinning to her campaign which was 10 years away when the economy was supposedly
fundamentally sound. Now the plans for any domestic oil production development is not forecasted to be within 10 years even if construction commenced today due to the world recession.
The world economy as it continues to enter a recession will affect the politics of the US Presidential campaign especially for those who promote drilling offshore and in Alaska.
TAGS: drill baby drill, US economy, World Recession, consumer confidence, the dollar, the energy sector, Canada, G-7 countries, dollar drops, Alaska pipeline, world economy, world recession, EnCana, TSE, NYSE, Canada, baby boomers, Japan, Nikkei, world countries, economic disaster, roller coaster stock market.