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interestrateripoff

Us Economic Recovery Loses Momentum

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http://www.telegraph.co.uk/finance/economics/7918861/US-economic-recovery-loses-momentum.html

Growth in the world's largest economy cooled to a 2.4pc pace in the second quarter of the year from 3.7pc in the first three months of the year, a report from the Commerce Department showed on Friday. Consumer spending, which makes up the lion's share of the economy and has, until recently, helped power global growth, rose 1.6pc in the quarter, down from 1.9pc at the start of the year.

Today's number echoes more recent data - particularly from the manufacturing sector - that growth is easing off. Like Britain, the US is still struggling with a fragile banking sector and housing market - the key engines of the country's long boom.

Financial markets took some fright at the figure, with the dollar sliding and the price of government bonds rising.

“The economy entered the second quarter with plenty of momentum but exited with very little,” Nigel Gault, chief US economist at IHS Global Insight, told Bloomberg. “We expect that growth in the third quarter will be slower.”

Signs the recovery is faltering will also add to pressure on the Federal Reserve, America's central bank, to consider unleashing new measures to strengthen the recovery. Ben Bernanke, the Fed chairman, said last week that he's prepared to do more if the economy "doesn't continue to improve." Analysts say that's likely to mean a new round of printing money, or quantitative easing.

Didn't the US enter Q2 with the economic stimulus packages ending which invariable will mean growth will slow?

Edited by interestrateripoff

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Never mind, since QE worked out so well they'll no doubt print up loads more Dollars to carry on with the success...

It's a printed money recovery now, same here in the UK, our press is primed and ready for the next run of Pounds.

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I dedicate this verse of Deep Purple's Stormbringer to the next round of QE...

Comin' out of nowhere

Drivin' like rain

Stormbringer dance

On the thunder again

Dark cloud gathering

Breaking the day

No point running

'Cause it's coming your way

Seriously though, can the US and UK do it again. Is it even a choice? Many economists suggest not ...

Edited by gruffydd

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Seriously though, can the US and UK do it again. Is it even a choice? Many economists suggest not ...

This guy seems to like the idea in the US...

http://imarketnews.com/?q=node/17306

And we know Merv is keen too. The first sign of deflation and the press will be fired back up.

I wonder though in this situation just how many people will stay in fiat. I've not walked away completely yet but I am getting close.

Edited by MrFlibble

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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