{"id":22020,"date":"2016-10-16T18:31:50","date_gmt":"2016-10-16T23:31:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22020"},"modified":"2016-10-16T18:31:50","modified_gmt":"2016-10-16T23:31:50","slug":"the-floodgates-begin-to-open","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22020","title":{"rendered":"The Floodgates Begin To Open"},"content":{"rendered":"
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The Floodgates Begin To Open<\/a><\/h3>\n

It\u2019s now clear that what governments did to counter the Great Recession may have delayed systemic collapse, but did not resurrect the old normal. Growth around the world is anemic \u2013 which is to say debt continues to increase faster than the productive capacity to service it \u2013 and inflation (the other way to shrink a debt burden) remains below target.<\/p>\n<\/header>\n

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Now \u201canemic\u201d is becoming \u201cnon-existent.\u201d In the US, mini-credit-bubbles like auto loans, home mortgages and student loans are sputtering, leading economists to dial back their rosy scenarios for 2016. The\u00a0Atlanta Fed\u2019s GDPNow forecast<\/a>\u00a0for Q3 growth, for instance, was a robust 3.8% in August but is now less than 2% \u2014 and still falling.<\/p>\n

\"gdp-now-oct-16\"<\/a><\/p>\n

Not surprisingly, everyone is starting to panic. In the UK, where admittedly Brexit has created a unique situation:<\/p>\n

Mark Carney: Bank of England will tolerate higher inflation for the sake of growth<\/a><\/p>\n

(Telegraph) \u2013 Official data on Friday showed house building, infrastructure and public construction all slumped in August, indicating that the UK\u2019s building industry is slowing sharply and could even enter a recession. Construction output dropped by 1.5pc in the month, an unexpected drop after growth of 0.6pc in July, according to the Office for National Statistics. Separate Bank of England figures showed banks suffered a big drop in demand in the months following the Brexit vote as fewer Britons were prepared to take major financial decisions. Demand for mortgages dipped strongly, with a net balance of 44pc of banks reporting a fall in customer interest \u2013 the biggest negative score in almost two years.<\/p><\/blockquote>\n

Bank of England Governor Mark Carney told an audience in Nottingham that the current environment of low inflation was \u201cgoing to change\u201d, with the drop in the value of the pound likely to push up prices across the economy.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Floodgates Begin To Open It\u2019s now clear that what governments did to counter the Great Recession may have delayed systemic collapse, but did not resurrect the old normal. Growth around the world is anemic \u2013 which is to say debt continues to increase faster than the productive capacity to service it \u2013 and inflation […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[14028,93,14472,353,391,7544,995,1264,827],"class_list":["post-22020","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brevet","tag-britain","tag-dollarcollapse","tag-gdp","tag-growth","tag-john-rubino","tag-mark-carney","tag-recession","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22020"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22020\/revisions"}],"predecessor-version":[{"id":22021,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22020\/revisions\/22021"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}