The Travels: World Recession?

Wednesday, December 30, 2009

World Recession?

With the US employment rate hovering around 10% and the captains of American industry publicly working to out-maneuver one another in obtaining federal funds, coupled with a projected fall in the 2009 US GDP by 0.5% (SSRN-the 2009 recession in the U.S. by M. Keil, J. Symons ) the average American has to be thinking the world is in recession. After all, the US is the bulwark of the world economy – right? In 2009 China GDP grew by 8.3 % and in 2010 it is projected to grow by 9.5% (Price index for raw materials collapsed in 2009 - 2009-12-30 16:40:12 ).

While China drives world commodity prices, the US is having trouble even producing commodities. US Steel production fell over 37% in 2009 from 2008 levels (U.S. steel production down 37% in 2009 - 2009-12-30 16:38:30 ). How long can we continue to be a nation that generates no wealth while consuming cheap goods from other nations? Eventually even the credit cards tap out.

Meanwhile the US Congress contemplates Cap and Trade legislation that guarantees higher prices for US manufactured goods, while passing healthcare “reform” legislation that guarantees higher government spending at a time when tax revenues are declining, thus further removing from the economy badly needed capital. Whose side are these guys on, anyway? If we re-elect any senator or representative who played any part in passing, or even trying to pass, either of these two monstrosities we will truly be getting what we deserve. Unfortunately, our children and grandchildren, and maybe their grandchildren, will also pay the price.

References

Price index for raw materials collapsed in 2009 - 2009-12-30 16:40:12 purchasing Retrieved 12/30/2009, 2009, from http://www.purchasing.com/article/442006-Price_index_for_raw_materials_collapsed_in_2009.php?nid=2863&source=link&rid=14978431

SSRN-the 2009 recession in the U.S. by M. Keil, J. Symons Retrieved 12/30/2009, 2009, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1403003

U.S. steel production down 37% in 2009 - 2009-12-30 16:38:30 purchasing Retrieved 12/30/2009, 2009, from http://www.purchasing.com/article/442005-U_S_steel_production_down_37_in_2009.php?nid=2863&source=link&rid=14978431

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