Its official, the 2nd estimate on 2nd quarter GDP, came in at a meager annualized 1%, which is synonymous of having no economic growth. Beginning this month, when writing “A day and life in today’s American Economy August 2011, I surmised the 2nd quarter GDP will be 1%, and the final version even less than 1% percent. Behind that reasoning, one saw a confluence of current negative economic indicators such as: Consumer sentiment (Michigan U), Philadelphia Fed survey, Int’l Trade, Housing, National debt , Budget deficits Unemployment rate and unemployed, CPI index and more. What they show, has just one meaning, we are already (3rd quarter) in a recessionary period.
Despite the downward pointing indicators, the economy hoped the Fed chairman might be able to stimulate the economy once more. No surprise here, as the chairman could only speculate by looking at the economy in another month or so, thus, he had no rabbits left in an empty hat. The Fed chairman is basically looking at empty chambers in a gun that has fired all of its bullets. Now, it looks like the economic baggage is in the consumers corner with the hope, through purchasing power, the consumer will pull the economy out of its misery.
Of course, waiting in the wings is visionary Mr. Obama, who will announce a new job creation program sometime in September.. Good luck on that, since all he can do, is to borrow more stimulus money and in the process, increase the national debt even more. In light of this, we hope, Congress will enact a constitutional amendment (XXXVIII) limiting debt and borrowing.