Two early economic warning signals sound


From Agence France Presse, two early warning signals.

First:

The US Commerce Department on Tuesday confirmed a picture of sluggish growth in 2016, with the world’s largest economy growing at its slowest pace in five years.

The updated figures left prior estimates unchanged. Official data showed consumers had spent slightly more than originally believed but this was offset by downward revisions in government spending and business fixed investment.

The figures come as President Donald Trump prepares to address a joint session of Congress on Tuesday, with the world waiting for details on the new administration’s economic policy agenda.

US gross domestic product grew by 1.6 percent in 2016, down from 2.6 percent in 2015 and the slowest pace recorded since 2011.

Growth slows in India

And the second:

India’s economic growth rate fell to seven percent in the third quarter of the financial year after the controversial ban on high-value banks notes in November, the government said Tuesday.

Gross domestic product in one of the world’s fastest growing economies expanded 7.0 percent year-on-year in the three months to the end of December, down from 7.3 percent in the previous quarter, official figures showed.

While growth came in lower than the previous quarter, it exceeded most analyst predictions in the wake of the government’s shock move to remove all 500 (around $7.50) and 1,000 rupee notes from circulation immediately.

Prime Minister Narendra Modi has defended his so-called demonetisation scheme as a necessary strike against corruption.

With a belligerent, capricious, bombastic President Pussygrabber at the helm of the world’s largest economy and a trade war already developing with Mexico and military tensions rising in Asia, bubbles could burst, and quickly,

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