International Monetary Fund finally accepts the fact – world headed for a depression unless U.S. Housing Slowdown is halted

If the US housing slowdown continues, two things are going to happen. First the US consumers will shrink back like never before and that will collapse Asian economies that depend on American consumers. But more importantly people in America have already started realizing no matter what the Government projects, they are getting poorer slowly but steadily.
The net effect is very serious for the global economy. First, the WalMarts of the world will suffer big time. China and India will face depression. Japan will be seriously hurt. Then there will be a forced showdown of closing the borders to free trade. An all out trade war of worst in nature will break out. The American businesses who thaught they control America, learnt a good lesson in the last election. The American democracy is alive and is actually prospering. The special interests now (whether Democrats or Republicans) have difficulty in brainwashing common people. People will demand restricted fair trade with all countries that plans to dump goods and services on America.
Housing starts in the U.S. tumbled 14.6 in October to the lowest level in more than six years. That prompted a warning signal from the International Monetary Fund Managing Director Rodrigo de Rato.
Europe’s and America’s trade gaps are worsening with China and Japan. If things do not improve in the UK,US and the Euro zone continues to slow down, the China and Japan both will be asked to come and manufacture in America and Europe. That will be the end of Asian prosperity for the time being. It will also mark the of offshore outsourcing as we know it.