Aug 3, 2011

USA - Unable to Spend Anymore..

Forget the Ceiling the GDP is underground
John Crudele
The New York Post

It is certainly good news that Congress and the White House seem to have an agreement that'll allow the US to pay its bills beyond today. USA shouldn't stand for Unable to Spend Anymore.

I'm assuming, of course, that the budget deal struck over the weekend that is short on cutbacks and long on "we'll take care of it laters" will pass the Senate today.

But lost in all the chatter about how much federal spending needs to be reduced is the fact that the US economy is getting weaker by the month.

I've often mentioned that economic growth would look like it was weakening in the summer because the spring's statistics were overly optimistic. Now that's happening.

The economy isn't going to hell, as we like to say. Not yet. But it certainly is somewhere in the vicinity of purgatory.

Yesterday we learned that manufacturers in this country weren't doing nearly as well as the experts thought -- and the experts weren't very optimistic to begin with.

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