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US economic data are grim. Consumer and business spending slowed. Auto sales fell dramatically. Total retail sales fell three straight months in Q II.
Services consumption recorded its lowest growth in two years. Rasmus said consumer spending was driven largely by rising credit card, auto, and education debt. It's unrelated to real disposable income. It's falling.
Manufacturing strength is ebbing. Durable goods spending declined sharply. US exports grew more slowly than imports. GDP took a hit.
State and local government spending keeps declining. So does domestic federal spending. During hard times, it's a prescription for trouble. Spending cuts, layoffs and higher household taxes assure greater problems later on.
Rasmus sums up US economic woes, saying:
In 11 post-1947 recessions, state and local government spending increased. Net private sector job creation averaged 350,000 for six consecutive months. Housing led recovery.
For the past four years, the opposite occurred. No effective jobs program exists. Continuing housing foreclosures harm millions. State, and local government spending heads south. So does domestic federal spending.
Obama betrayed Americans. His alleged economic recovery program was illusory. Ahead things look worse. In Europe they're dire. Draghi promised help. Some observers think he's bluffing. Others don't trust him.
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