Global Recession About to Hit the U.S. Economy; Economic Report by Leading Financial Newsletter Profit Confidential

According to Michael Lombardi, lead contributor to Profit Confidential, the global economic contraction is beginning to hit the U.S., and it will lead America into a recession. Lombardi believes the prospect of a global economic recession can no longer be ignored, and the stock market will be hard-pressed in this recessionary environment to make any gains, unless a third round of quantitative easing (QE3) soon comes into effect to prop up the market.

In the article “Prospect of Global Economic Recession Can No Longer Be Ignored,” Lombardi says that the only thing that could turn this tide is if the rest of the economic world began to grow again, easing the recessionary pressures within the U.S. economy.

“Unfortunately, the recession in Europe is worsening as China’s economic contraction continues to gain steam,” notes Lombardi.

Lombardi sites that for May, China’s manufacturing sector contracted to a seven-month low: “Since China’s economy is based on manufacturing due to the goods it exports to the rest of the world, this is not a good sign for China,” he says.

With the unemployment rate creeping higher in China, Lombardi believes consumer spending will be held back. “This negative feedback loop is occurring around the world, adding to the evidence of a global economic recession,” argues Lombardi.

The Profit Confidential lead contributor then cites that the eurozone’s manufacturing activity came in at a level not seen since June 2009. “Worse, the economic contraction that has been taking place over the last few months is gaining at the fastest level experienced in three years,” Lombardi reports.

“All we are waiting for now is for the Federal Reserve to announce its next round of quantitative easing (QE3), a fancy name for money printing,” says Lombardi.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market…before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.