United States: « Taxargeddon » will begin from summer 2012 – The US economy in free-fall by autumn

In short, one must expect a paralysis in economic activity affecting between 1% and 2% of US GDP from September/October 2012 simply due to markets freezing up and putting the economic players involved on “stand-by”: Pentagon procurement agreements, military R&D programmes, suppliers/private partner contracts for US social programs, the health industry… With an already dying economy , the growing strength of “Taxmargeddon” thus guarantees a strong US recession from the 3rd quarter of 2012. Major businesses like local service providers, federal social services like municipal services or at states’ level… all will be affected . Little broadcast by the major American media, panic is starting to grip the leaders of whole sectors of the country’s economy. Let’s remember, as our team has emphasized for several years, that at the time of this crisis the US economy has in fact become very heavily dependent on federal financing. Even if many Americans aren’t aware of it, they have been living in a “socialist” country for a long time. However what could be worse in a system where State financing plays a central role to suddenly see this money drying up! Ask Eastern Europeans of the 1980/1990s, they will tell you. Behind the « Greek mouse » and the « end of the Euro smokescreen », here’s the 800 pound gorilla in the room! LEAP/E2020 - Excerpt GEAB N°66 (June 2012)