Sunday, August 7, 2011

The U.S. Economy Feels the Pull of Gravity

Peter Coy

Slow growth may do more than just signal trouble; it may cause it. Economics isn’t rocket science, but the U.S. economy is a little like a rocket. If it has enough thrust, it can escape the tug of economic gravity. Not enough and it just might go into a tailspin. Economists at the Federal Reserve and elsewhere are studying whether today’s slow growth is a precursor to an outright recession—and if so, why. It’s widely accepted that a slowly growing economy is more likely to tip into recession, for the obvious reason that it’s already too close to the line; any shock can knock it into negative territory. And today’s slow growth is at least in part a symptom of underlying problems such as consumer indebtedness, high energy prices, and the jitters induced by …..


  1. The best video ever posted on this blog (last year):

  2. i like this analogy, but a this point there is ultimately no escaping the economic gravity. you might be able to thrust away for some period of time, but the economic gravity will just become greater. They are prolly preparing a 5 or 10 trillion dollar stimulus, and it might work, for a period of time, but if we dont crash in one direction, its because we went to fast in the other and couldnt control it, and then we curve back to where we came from. were doomed.

  3. is say the huge stimulus because it will come from printed money hence why gold is exploding, its trying to price in a shit load of printed money injected into the system,

  4. they'll print. no way out now but printing. in order to save bond holders they'll print, already have and has resumed again, which causes a spiral of competing currency's, currency wars, race to the bottom, then what? that's the question. historic times we're witnessing, the end of competing policy's and currency's will come of it.


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