COMMENTARY: Today, June 1, the US and stock markets across the world experienced major declines. Further significant corrections are almost sure to follow. The causes were the increasingly obvious fact that the US economy is once again about to slow significantly, and has already begun to do so.  On wednesday, a preliminary jobs report by ADP showed virtually no creation in May, contrary to expectations of another 200,000. In addition, manufacturing indexes in the US have plummeted by huge amounts, both for current and new orders. Housing prices are again in free fall and housing lingers in depression like conditions. Meanwhile, China, India, and Brazil are sharply cutting back their economies, while Japan, UK, and Australia are all entering deeper recessions, and the Euro debt crisis deteriorates with no solution in sight. These are all events this writer has been predicting for months, and forecast as far back as late 2009 when his book, EPIC RECESSION, was written and sent to publishers. The US economy is closely tracking a previous Epic Recession of 1907-1914.

‘THE COMING DOUBLE DIP RECESSION, by Jack Rasmus, copyright June 2011

“Today, June 1, stock markets in New York and around the world declined in levels not seen since last summer 2010. Days and weeks immediately ahead will likely register even further significant market declines, as the obvious becomes increasingly evident: the U.S. and other major global economies are once again on the cusp of a significant slowdown.

In a recent post a few weeks ago, entitled Why March-Aprils Job Gains Will Collapse This Summer, this writer warned that the official hype about job recovery promoted by the business press, and distorted US government data, was grossly inaccurate. Behind the false jobs data lay a growing picture of imminent economic relapse. The U.S. Labor Departments jobs numbers due this Friday, June 3, will likely further corroborate this view.

But the coming economic slowdown is not simply a result of the failure to create a sustained recovery of jobs in the U.S. for the past two years of so-called economic recovery. Nearly all economic indicators have been deteriorating since the beginning of 2011, even though policy makers and Wall St. investors have been diligently ignoring the fact.

Consumption