Sunday, December 25, 2022

Will the U.S. enter a recession in 2023? Quite possible!

We had already the recent absurd discussion whether two consecutive quarters of negative GDP growth constitute a recession or not despite the fact that this economics 101 definition has been applied for probably more than 4 decades! This deliberate and other diversions about economic data and how to interpret them may have helped the Dimocratic Party to avert worse mid term election results!

The recent significant and rather unusual layoffs in the tech sector (I don't mean Twitter) were possibly also ominous!

It appears, this Christmas season consumer spending was also not so great (see chart below). Voters have actually three votes: political, by feet, and by money!

The economic outlook in other parts of the world does not instill confidence either (see OECD Outlook chart below)!

With the rushed passage of the monstrosity omnibus bill by the U.S. Congress during the lame duck session, our elected representatives (including 18 GOP Senate  traitors) sure could be blamed for it! Elected representatives, who still believe that huge federal deficit spending in times of persistent high price inflation is helpful, are morons! Frugal and wise government spending was called for! Also known as belt tightening, instead we got e.g. loads of pork barrel spending!

OECD Outlook published in November 2022. I think too optimistic as usual. By the way, a louse designed chart (e.g. each bar should have number)!!!!




No comments: