{"id":33619,"date":"2018-04-21T11:33:05","date_gmt":"2018-04-21T16:33:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33619"},"modified":"2018-04-21T11:33:05","modified_gmt":"2018-04-21T16:33:05","slug":"the-economy-is-cooked","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33619","title":{"rendered":"The Economy Is Cooked"},"content":{"rendered":"
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\u00a9 Albund | Dreamstime.com<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The Economy Is Cooked<\/a><\/h3>\n
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The growth cycle has peaked<\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Hours ago, European Central Bank chief Mario Dragho conceded<\/a>: “The growth cycle may have peaked”<\/em><\/p>\n

Of course, those paying attention to the data already knew this. Our politicians and central planers have been peddling to us the fantasy that the global economy is strengthening, finally ready to fire on all cylinders after nearly ten years of dependence on monetary stimulus.<\/p>\n

That just ain’t so.<\/p>\n

The Federal Reserve of Atlanta’s GDPNow measure, which gives a forecast of Q1 2018’s expected GDP, is currently coming in at 2.0%, down from the much more vigorous 5.4% growth predicted as recently as early February:<\/p>\n

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Generating this growth, meager as it is, has required a tremendous amount of new debt. So much more so that the US will soon have a worse debt-to-GDP ratio than perennial fiscal basket-case Italy:<\/p>\n

U.S. Debt Load Seen Worse Than Italy’s by 2023, IMF Predicts (Bloomberg)<\/a><\/p>\n

In five years, the U.S. government is forecast to have a bleaker debt profile than Italy, the perennial poor man of the Group of Seven industrial nations.<\/p>\n

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The U.S. debt-to-GDP ratio is projected widen to 116.9 percent by 2023 while Italy\u2019s is seen narrowing to 116.6 percent, according to the latest\u00a0data<\/a>\u00a0from the International Monetary Fund. The U.S. will also place ahead of both Mozambique and Burundi in terms of the weight of its fiscal burden.<\/p>\n

The numbers put renewed focus on the U.S. deteriorating budget after the enactment in December of $1.5 trillion in tax cuts, and the passage more recently of $300 billion in new spending. President Donald Trump\u2019s administration argues that the tax overhaul combined with deregulation will help the economy accelerate, which in turn will generate enough extra revenue to avoid any fiscal fallout.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Albund | Dreamstime.com The Economy Is Cooked The growth cycle has peaked Hours ago, European Central Bank chief Mario Dragho conceded: “The growth cycle may have peaked” Of course, those paying attention to the data already knew this. Our politicians and central planers have been peddling to us the fantasy that the global economy […]<\/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":[9860,195,240,263,353,19880,588,2218],"class_list":["post-33619","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adam-taggart","tag-debt","tag-economic-growth","tag-energy","tag-gdp","tag-law-of-thermodynamics","tag-oil","tag-peak-prosperity"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33619","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=33619"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33619\/revisions"}],"predecessor-version":[{"id":33620,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33619\/revisions\/33620"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}