Economy grows despite everyone’s best effort to kill it.

Three years after a government spending surge in response to the recession drove the U.S. past that red line — the nation’s $16.7 trillion total debt is now 106 percent of the $15.8 trillion economy — key indicators reflect gathering strength. Businesses have increased spending by 27 percent since the end of 2009. The annual rate of new home construction jumped about 60 percent. Employers have created almost 6 million jobs. And with borrowing costs near record lows, the cost of paying off the debt is lower now than in the year Ronald Reagan left the White House, as a percentage of the economy. “The argument that heavy debt loads slow economic growth doesn’t hold a lot of water,” says Guy LeBas, chief fixed- income strategist at Janney Montgomery Scott LLC in Philadelphia who oversees $12 billion.

via Economists See No Crisis With U.S. Debt as Economy Gains – Bloomberg.

 

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One thought on “Economy grows despite everyone’s best effort to kill it.

  1. As your title to this piece clearly states, the economy is growing in spite of DC; however, there are some who believe we are seeing this upswing because of the actions of the FED. After all the FED does not have to wait for DC to agree before it can act. It is working as intended, as a safety valve if DC gets in the way via inability to compromise. It will be interesting to see how history treats this period of time. I hope I live long enough to see that, and then some more.

    I still worry the extreme partisanship, unprecedented partisanship, will cause some monstrous problems down the road. It may not be the issues involving the economy we become tripped up on. We could very well be witnessing the beginnings of World War 3, with the US being the aggressor under the aegis of “The War on Terror”, and “The War on Drugs”. We have our military, and inteligence tenticles in way too many places, and DC is too busy arguing over minutia to see the big picture, and set a new tone for America in todays world.

    cheers,

    mark

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