This long-term weakening of the economy is the direct result of financialization and the Federal Reserve's policy of propping up impaired debt with more debt and constantly bringing demand forward with zero interest rates.
The U.S. economy is slowing to stall speed--the point when gravity overcomes the lift provided by central bank free money.This deceleration is evident in a number of indicators such as gross domestic product (GDP), which is now at 0% according to theFederal Reserve Bank of Atlanta's GDPNow model.
New orders for consumer goods has fallen off a cliff, eerily repeating the freefall of the Great Recession in 2008:
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Just a hiccup.
ReplyDeleteWith all the people dropping out of the work force to go on welfare, there's no one left to do the work!
ReplyDeleteSince 2009 been in stall speed unless you work for the taxpayers then it's been booming.
ReplyDeletePeople don't buy consumer goods when they have to choose between those and food, transportation, medical care and other necessities.
ReplyDeleteGuess what - there are no more tools left in the FEDs arsenal to stimulate.
ReplyDeleteTo 9:42 Poster - What if it isn't a hiccup and we are dipping into another recession. What then? Lower interest rates below -0-?