Government spending kicking in with 2007 spending that was delayed to 2008:
Topical article: The GOP’s December Surprise by James K. Galbraith
Durable Goods Orders Rise Unexpectedly
by Michael M. Grynbaum
A separate report showed that orders for big-ticket items rose last month, beating economists’ expectations. A surge in export orders and *investment in military-related products* sent durable goods orders up 0.8 percent in June from a revised 0.1 percent in May, the Commerce Department said. Excluding orders for military-related goods, orders were up only 0.1 percent.
[top]
From Galbraith article : “The second threat, not often mentioned, is our reckless foreign policy, including the invasion of Iraq, bellicosity toward Iran, and the ongoing subtext of hostility toward China. Since the Middle East has the oil and China holds our debts, all this is spitting in the soup, big time. It may not by itself wreck the financial system. But it doesn’t exactly build up the reserve of good will that we may need when the financial going gets tough.”
and China holds our debts? doesn’t exactly sound like he’s fully “in paradigm”. Plus he sounds awfully bearish on the economy…definitely not in the muddle through camp.
Right, he backslides now and then. Monetary operations aren’t his strong point. I’ll send this along to him, thanks.
🙂