Debt deal darkens fragile US economic outlook – FT.com
August 3, 2011 Leave a comment
Nothing to add here.
The writer is a major international finance operator who knows more than any economically illiterate US politician that our radical right have shot the US in the foot.
It is discouraging that several months of disruptive political bickering and posturing failed to deliver a well-defined medium-term fiscal reform effort. Instead, the legislation signed into law by president Obama on Tuesday is terribly unbalanced in design, lacks proper operational details, and leaves key issues to at least one more round of political brinkmanship.
This incomplete endeavour could be dismissed as business as usual in Washington except for one important consideration: it materially darkens an already fragile outlook for economic growth and job creation.
Business and household confidence has been hit at a time when recent data releases – including weak gross domestic product growth, virtually flat manufacturing activity, and declining consumption – all confirm that the US economy is struggling after last year’s stimulus-induced growth spurt.