by John Rubino, Dollar Collapse:
While the rest of the world is slowing down and in some cases dropping into actual deflation (see here and here, respectively) the US has, sort of, bucked the trend. Despite a horrendous first quarter in which the economy actually shrank, economists seemed content to blame the weather and simply push February’s lost growth into the current quarter. Goldman Sachs, ever the positive influence, now expects fairly robust 3% growth to be reported a couple of months hence.
But maybe not. The latest retail sales number came it at a positively European 0.1%, and since 70% of the US economy is derived from consumers buying (mostly, alas, unnecessary and useless) stuff, well, that’s not mathematically a good thing if your target is 3%. Here’s more detail from Wall Street Cheat Sheet:
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