Thursday, January 28, 2016

Global Economic Slump Expanding But Majority Is Still Not Worried

The global economy, increasingly burdened by economic mismanagement and the debt excesses of previous expansions, is contracting with alarming speed. The Economic Activity Composite (EAC), a leading proxy for US economic activity, has been negative since early 2015 (see below). The EAC's contraction, a trend that significantly increases the odds of an officially-recognized recession in the United States in 2016, continues to elude the majority that generally believes the US economy remains on solid footing. The majority, always a day late and dollar short in terms of timing, will panic only after economic reality completely invalidates their beliefs.

Headline: Global slump, high dollar drag US durable goods in December

WASHINGTON (AP) -- Orders to U.S. factories for long-lasting manufactured goods tumbled in December, with a key category that tracks business investment plans falling for a second straight month.



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