Needless to say, a souring of the relationship between the largest economy on the planet and the second largest economy on the planet would not be a good thing for the global economy.
And of course China is far from the only country that is having economic problems. Yesterday, I discussed how Italy’s banking system is on the verge of completely collapse. A few days before that I discussed the economic depression that has gripped much of South America. A new global economic crisis has already begun, and just because the United States is feeling less pain than the rest of the world so far does not mean that everything is going to be okay.
There are huge red flags in Europe, Asia and South America right now. In addition, our neighbor to the north (Canada) is experiencing a very significant slowdown. The irrational optimists can continue to believe that the U.S. economy will somehow escape relatively unscathed if they would like, but that is not going to be what happens.
Just like virtually everyone else on the planet, we are heading into hard times too, and this is going to become a dominant theme in the presidential campaign as we move forward into the months ahead.
This article is brought to you courtesy of Michael Snyder.