It might already be here. But surely the 'great man', the deity O'Bama will save the cowering, dumb, superstitious peasant mass, from a recession ? Doesn't a wave of his eminence's divine hand alter events, create jobs, manufacture money and restore Mother Earth? Certainly the greatest leader in divine history can save us from ourselves since he is the change that he was always hoping for? A recession should be no match for the wonders of his divine greatness the Obamed.

Outside the world of Obama-worship and Marxist-Keynsian claptrap and witchcraft, the global economy marches towards another recession. Indeed it is likely already in another recession. Real US unemployment is 20% or higher. Government economic numbers are half-truths bordering on lies with just enough veracity to give them some credibility. But no one believes that inflation is zero or mild. Real world inflation is 5% or more thanks to a monetary and fiscal madness which is forcing up commodity prices and investments in gold and silver. This is what politicians call 'speculation'. They devalue your currency, engage in fiscal insanity and are 'shocked' that investors who are all 'speculators', buy inflation hedeges such as precious metals. They also express amazement when agricultural commodity prices rocket higher due to extraordinarily stupid programs like corn ethanol for cars [known as moonshine] which takes productive farmland for corn and other cereals and food products and redirects it towards rich people driving Toyota Prius'. But of course the politicians are always fighting for the little guy and Mother Earth. Not much has changed in that regard since the days of the Gracchi in 130 BC Rome.

It is highly likely that we are already in a recession. The Great Man's plans, the highest power of human-divine intelligence in history, have failed. Trillions spent in a fiscal and monetary orgy that has done nothing to stimulate anything except more government. Those who love Sweden applaud and drool. Those who live in reality and who understand the political-economy are rightfully terrified at what the future will bring. Higher inflation, currency implosions, and trade realignments are coming especially in Europe. One should not be surprised if regional tensions arise in the US where solvent states like Texas decide that the stupidity of the California-New York-Illinois-Washington model is not worth keeping.. Fiscal insolvency will lead to socal problems and the vagaries and inconsistencies of the multi-cult fetish, poor immigration choices and moral relativity will be manifest.

Too negative? Hardly. As one analyst wrote:

“...the problem is not tax structures, it is debt that cannot be repaid. Lars Frisell is the chief economist for the Swedish group that regulates that nation’s banking system. Yesterday he was quoted as saying:

“It won’t take much for the interbank market to collapse. It’s not that serious at the moment, but it feels like it could very easily become that way and that everything will freeze.” (hat tip, Art Cashin)

My friend Porter Stansberry wrote today:

“In Europe, the problem is a bit different … and slightly more technical. Most of the debt in Europe is held by the big banks, not the sovereigns. Look at just two French banks, for example. Credit Agricole and BNP Paribas have combined deposits of a little more than 1 trillion euro. But they hold assets of 2.5 trillion euro. Those assets equal France's entire GDP.”

Assets meaning soverign debt. French and German banks hold many trillions in Western and Eastern European debt instruments. When Greece is formally declared bankrupt [inevitable] and Spain and Italy almost bankrupt [inevitable] and when these states and others need to roll over their debts in 2013 and refinance, the entire Euro banking zone will start to melt down. Long before this the markets will be discounting the Euro down towards Zeuro.

The US will fare just as poorly. No spending cuts are going to occur. No entitlement reforms. No debt constaint. The opposite of course will happen along with zero interest rates forever guaranteeing a brutal round of inflation and according to some, hyperinflation. Bernanke is a fool. But he is just a political puppet of the great man Obamed, and his courtly regime. The divinity promised us that he was the change that the world was waiting for. I don't think most voters who prostrated themselves like grovelling idiots to his craven image would have guessed that their divinity would end up destroying much of the US republican experiment and manufacture a brutal recession that might indeed be as bad as the last depression. Well done voters. Well done indeed. Maybe you might want to check out who and what you are voting for and why, next time around.