Wednesday, November 10, 2010

U.S. Economy a “Fiscal Trainwreck”

“The U.S. economy is a ‘fiscal train wreck’ waiting to happen that risks ushering in a period of stagnation featuring by minimal growth, high unemployment and deflationary pressure, U.S. economist Nouriel Roubini wrote…,” said Reuters.

Roubini was one of the first economists to predict the housing crash in the United States said “fiscal and monetary stimulus had prevented another depression.”

“But he said that further quantitative easing… will have little effect on U.S. growth in 2011…”

He said the U.S. remains on an “unsustainable fiscal course” and that further quantitative easy (creating billions more dollars and inserting them into the economy) will have “little effect on growth in 2011.”

“The worst of the coming fiscal train wreck will be prevented by the Fed’s easing. But the risk is (Obama) … will then preside over … a Japanese style stagnation, where growth is barely positive, and deflationary pressures and high unemployment linger.”

“There are not many, even among educators and statesmen, who comprehend the causes that underlie the present state of society. Those who hold the reins of government are unable to solve the problem of poverty, pauperism, and increasing crime. They are struggling in vain to place business operations on a more secure basis.” Ministry of Healing, p. 183

MSNBC Article