Consumers fuel steady U.S. economy as rest of world struggles

Wait for the sky is falling brigade they'll be along shortly to add commentary about we all economically doomed and the financial wheels are coming off and all the rest of the doomsday talk.

"US economic growth for the fourth quarter during October to December 2014, was reported to be cool when compared to sizzling economic growth during second and third quarters of the same year 2014. The overall such growth for the year 2014 was, however still up, also comparing well with some years immediately behind. A strongest consumer spending since 2006 has been reported though business investment or trade seems to have weakened perhaps due to cutbacks in oil and gas drilling by energy companies in view of falling prices of these commodities. It is said that performance of US economy these days is enviable when viewed from the standpoint of woes many economies round the globe are having. These circumstances , however, do not seem to be at variance with this writer's prediction of 2 June 2014 in article - Stressful times ahead for world economy in 2015 and 2016 - at www.astrologyweekly.com, that commencing from November 2014 and on , global economy was likely to have a mild downward trend mainly due to oil and gas."

Wait for the sky is falling brigade they'll be along shortly to add commentary about we all economically doomed and the financial wheels are coming off and all the rest of the doomsday talk.

The ECB is now undertaking a QE/asset-purchasing scheme at negative rates. Economically-speaking, this is shockingly bad. Last night I had dinner with a director from one of Japan's largest financial institutions, and he said that for the first time in his life, he is afraid of a worldwide economic collapse, he is worried about he can protect his children and grandchildren.

The governments of almost all developed countries have debts which far outweigh their GDP, and are deficit-spending to make ends meet, while their economies shrink, and revenues decrease. The only bright spot in the entire world is America, and the only reason America is growing is low energy prices. Were these to rise to former levels, who knows what might happen...

It's a bit hard to judge how strong the grow for the US economy really is because it's "doped" by relative big budget-deficits in Government spending since around 2008 which is boosting the economy. With that, in combination with low interest-rates, it would be strange if the US economy did not show a good growth. The real test is when they cut back on the stimulation.

"a director from one of Japan's largest financial institutions, and he said that for the first time in his life, he is afraid of a worldwide economic collapse,"

He has a pretty short memory. It seems he missed out on 2008, when there was a world economic collapse...and NOW is the "first time in his life" he has such worries?. LOL

Execs at financial institutions are the last people to listen to. They created the global meltdown in 2008 and the one in Japan in 1991. In the lead up to both, they said everything was OK. (That was before the government had to bail them out with around a trillion bucks)

Patrik Kallin,

It's a bit hard to judge how strong the grow for the US economy really is because it's "doped" by relative big budget-deficits in Government spending

Yes, but take a look at what has been happening with the budget deficits as a trend. The US budget deficits have actually rapidly decreased. Obviously there is a lot of debt, but they are still in a better position relative to Japan.

Interesting it is indeed that despite the US budget deficit shrinking, US economic growth was relatively good last year. (Some loopy folks had it that relative spending restraint would be bad for the economy.)

Won't hold my breath waiting for such a change in direction here in Japan.

JeffLee,

Execs at financial institutions are the last people to listen to.

Coming from you, that means we should be paying very close attention to what they are saying.

fxgai

Yes, but take a look at what has been happening with the budget deficits as a trend. The US budget deficits have actually rapidly decreased. Obviously there is a lot of debt, but they are still in a better position relative to Japan.

Yes, it have rapidly decreased since the US numbers look something like this: 2008:-4,8%,2009:-12,1% 2010:-10,7% 2011: -10,1% 2012: -8,5% 2013:-4,1% 2014:-2,8%

But I compared it to a contry like my own, for the same period Sweden had this deficits/gdp: Yes, it have rapidly decreased since the US numbers look something like this: 2009:+2,2% 2010:-0,7% 2011:+0,3% 2012: +0,2% 2013: -0,6% 2014: -1,1 %

Sweden had 3 of 6 years had a surplus, 3 years a deficit, and relative small numbers. US had 7 years of deficit, and with three years that had a over 10% deficit. These big overspending of coerce helps to boost the US economy, but it only possibly for a short time period, and now is going down to a level that is more "normal" but it's still a deficit that is too high in the long run.

"These big overspending of coerce helps to boost the US economy, but it only possibly for a short time period"

I don't know where you learn your history, but America's biggest govt spending ever occurred during WW2. That spending ended the depression and what immediately followed was unprecedented growth and prosperity for a couple of decades.

"it's still a deficit that is too high in the long run"

Why is it too high?