In the past week alone, a gauge of U.S. manufacturing unexpectedly fell to its weakest reading in a decade and payrolls at private companies grew less than forecast. Economists are starting to wonder whether the U.S. has approached so-called stall speed, the slowest pace of growth without careening into a recession. The International Monetary Fund, meanwhile, will likely downgrade global growth estimates this month.
Source – bloomberg.com
– “…One of the engines that drove a global economic recovery after the last two downdrafts in America – the relatively shallow one in 2001 and the catastrophe that began in 2007 – was China. As the financial crisis escalated, Beijing opened a floodgate of credit and cut interest rates, which stoked demand for everything from Australian coal to German cars”
China Won’t Save the World Economy This Time – By Daniel Moss
Beijing played a pivotal role in reviving global growth after recessions in 2001 and 2008. Things are very different now.
U.S. recession indicators are growing stronger and there’s one bigger-than-usual reason why the world should be worried: China isn’t coming to the rescue this time.
In the past week alone, a gauge of U.S. manufacturing unexpectedly fell to its weakest reading in a decade and payrolls at private companies grew less than forecast. Economists…
View original post 520 more words
The Most Revolutionary Act 
The US may have to start playing nice, for a change. The other tactics haven’t worked.
LikeLike
Pingback: China Won’t Save the World Economy – © blogfactory
I honestly believe it’s too late to start playing nice, Katherine. The US capitalist class could possibly save itself by ending all illegal foreign wars, legalizing all illicit drugs and ending the debt-base monetary system (in which 98% of our money is created by private banks when they issue loans). Clearly they’re not going to do any of these things.
LikeLike
“….. Economists are starting to wonder whether the U.S. has approached so-called stall speed, the slowest pace of growth without careening into a recession……”
Isn’t it good for the environment if there is less growth?
LikeLike
This is true, Aunty. Low growth or preferably no growth is better for the environment. At the same time, there needs to be a planned transition to a no growth economy. At the moment a lot of people lose their jobs when growth declines – there must be some plan to make sure they are taken care of financially if no work can be found for them.
LikeLike