Is America Primed (and Pumped) for Another Recession?

Is America Primed (and Pumped) for Another Recession?

Submitted by Jen Jones on Fri, 03/11/2011 - 12:51pm

Is America Primed (and Pumped) for Another Recession?

Continuing unrest in major oil-producing pockets of the Middle East—including recent changes in Egypt’s leadership and the current chaos in Libya—is adding fuel to the rumors that rising gas prices could take us into another economic downturn.

Yes, you read that correctly.

According to a new report from The Huffington Post, “Yet another group of analysts have issued grim warnings about the recent run-up in oil prices. In a letter to clients, analysts at Bank of America Merrill Lynch have cut forecasts for global economic growth after continuing unrest in Libya led to rocketing oil prices. The economists cut global gross domestic product expectations for this year to 4.3 percent from 4.4 percent.  They also warn that if oil prices keep climbing and stay high, there could be another recession.”

The reason unrest in Libya is having such a domino effect on America’s economic landscape? Libya is Africa’s largest oil exporter, and with its oil production in limbo, it chokes off 1 percent of the global oil supply. The result is rising costs of Brent crude, an industry benchmark that spiked to $116 per barrel this week.

“The Bank of America Merrill Lynch economists warned that if prices hit $150 a barrel, and stayed there, there would be a serious risk of global recession. If prices hit $200, a recession would be almost certain.”

But higher oil prices are already starting to have an impact, as average Americans have responded by cutting consumer spending; and employers, who were forecasted to add workers in 2011, have cut back on hiring in order to prepare for increased shipping costs.

Emerging energy prices will also be felt where it may hit the economy the absolute hardest: the housing industry. As we just begin to recover from 2008’s real estate reckoning, rising prices at the pumps—and resultant rising costs of food and utilities— could mean more households struggling to pay mortgages, more foreclosures, and even more homes submerged in the sludge of an underwater market.

All of this from a dependence on fossils fuels thousands of miles away.

“Libya's oil production has been decimated since the unrest began. Earlier this week, Morgan Stanley announced it would cut off all oil trades with Libya. Analysts say right now, the global economy can cope with current levels of oil disruption: ‘As long as it does not spread to the UAE, Kuwait, Qatar or Saudi Arabia or worsen in Bahrain, Yemen or Iran, oil supplies from Saudi Arabia and Kuwait should be able to make up shortfalls in Libya,’ analytics firm Cameron Hanover said in a report.

But $200 oil could be a very real possibility if protests threatened the government of Saudi Arabia, one of the world's largest oil producers. Though Saudi Arabia has increased oil production, it's not clear that the kingdom could make up for a major shortfall in oil production around the world. “

If you already find yourself in dire straits as America faces another economic downturn, knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a more secure future.  The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-833-627-0115, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

Debts Hurt! Got debt? Need help? Get started below!

Serving All of North Carolina

  • Bankruptcy Attorney Fayetteville NC
  • Bankruptcy Attorney Durham NC
  • Bankruptcy Attorneys Wilson NC
  • Bankruptcy Attorneys Greensboro NC
  • Bankruptcy Attorneys Southport NC
  • Bankruptcy Attorneys Wilmington NC

Bankruptcy Attorneys Raleigh NC (North)

6616 Six Forks Rd #203 Raleigh, NC 27615 North Carolina

Tel: (919) 847-9750

Bankruptcy Attorneys Raleigh NC (North)

Bankruptcy Attorney Fayetteville NC

2711 Breezewood Ave Fayetteville, NC 28303 North Carolina

Tel: (910) 323-2972

Bankruptcy Attorney Fayetteville NC

Bankruptcy Attorney Durham NC

1738 Hillandale Rd Suite D Durham, NC 27705 North Carolina

Tel: (919) 286-1695

Bankruptcy Attorney Durham NC

Bankruptcy Attorneys Wilson NC

2215 Nash St N Wilson, NC 27896 North Carolina

Tel: (252) 234-9194

Bankruptcy Attorneys Wilson NC

Bankruptcy Attorneys Greensboro NC

2100 W Cornwallis Dr. STE O Greensboro, NC 27408 North Carolina

Tel: (336) 542-5993

Bankruptcy Attorneys Greensboro NC

Bankruptcy Attorneys Southport NC

116 N Howe St. Suite A Southport, NC 28461 North Carolina

Tel: (910) 218-8682

Bankruptcy Attorneys Southport NC

Bankruptcy Attorneys Wilmington NC

116 N. Howe Street, Suite A Southport, NC 28461 North Carolina

Tel: (910) 447-2987

Bankruptcy Attorneys Wilmington NC