http://globaleconomicanalysis.blogspot.com/2011/07/canada-gdp-declines-3-largest-drop-in.html
Canadian Apologists Be Warned
Canadian apologists say weakness is overstated and temporary. I say it's understated because few realize what is happening and how serious this is.
Global stimulus has faded. It's gone. Kaput. And that stimulus was the only thing holding this global economy together.
Strip out government spending, QE madness in the US, and unsustainable credit growth in China and you have a flatline global economy at best.
It's Not Temporary
Headline be damned, it's not temporary.
Europe is now in austerity-mode, US cities and states are cutting back, the odds of more fiscal stimulus in the US are roughly zero, the US might (and should) lose its AAA rating, Australia is a basket case on the bursting of its property bubble, Canada has the second or third largest property bubble next to China and Australia, the bond market is targeting Italy and Spain, Brazilian defaults are soaring, China is overheating and needs to slow, yet the average economist is looking for a robust second-half. Go figure.
In aggregate, economists are the most optimistic group on the planet.
Canadian Apologists Be Warned
Canadian apologists say weakness is overstated and temporary. I say it's understated because few realize what is happening and how serious this is.
Global stimulus has faded. It's gone. Kaput. And that stimulus was the only thing holding this global economy together.
Strip out government spending, QE madness in the US, and unsustainable credit growth in China and you have a flatline global economy at best.
It's Not Temporary
Headline be damned, it's not temporary.
Europe is now in austerity-mode, US cities and states are cutting back, the odds of more fiscal stimulus in the US are roughly zero, the US might (and should) lose its AAA rating, Australia is a basket case on the bursting of its property bubble, Canada has the second or third largest property bubble next to China and Australia, the bond market is targeting Italy and Spain, Brazilian defaults are soaring, China is overheating and needs to slow, yet the average economist is looking for a robust second-half. Go figure.
In aggregate, economists are the most optimistic group on the planet.
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