The U.S. economy came perilously close to flat-lining in the first quarter and grew at a meager 1.3 percent annual rate in the April-June period, leading economists to warn of recession if a stand-off over U.S. debt does not end quickly.
The Commerce Department data on Friday also showed the current lull in the economy began earlier than had been thought, with the growth losing steam late last year.
That raised questions on the long held view by both Federal Reserve officials and independent economists that the slowdown in growth this year was mostly due to transitory factors.
The U.S. economy in the first quarter expanded at just a 0.4 percent pace…
And here’s the kicker – if they revised Q1 from 1.9% to 0.4% growth, what do you think will be the likely outcome when they revise Q2’s 1.3% growth? There is, of course, chance that later revisions will be upwards, but I doubt that anyone would make a bet on that happening. Revisions of late have tended towards worse news – so I think we all know there the Q2 revisions are heading.
Do any of you liberals out there need any more proof that Obamunism! is a failure? That you can’t borrow and print your way to wealth? If any of you liberals are unwilling to admit defeat, what I’d like to hear is just how much more money you think we should print and borrow…what is the magic figure which will certainly grow the economy?
UPDATE: Except for the Republican governed States, we’d probably already be in recession.