Is Economy Running Out of Gas?


Inquiring minds are looking at an insightful article by Marketwatch.com’s Rex Nutting entitled “Economy is running out of gas“. Mr. Nutting makes some very basic assessments about growth in the economy in the near future:

But it won’t. The economy is slowly readjusting and rebalancing, but in the meantime it’s also suffering from a lack of demand to keep everyone employed.

Our political system tried some half measures to keep demand up, but has apparently given up on even those.

The economy is running out of gas, and there’s no fueling station in sight.

Consumers are still hunkered down, and without further growth in consumer spending, businesses won’t have the profits they need to justify expanding their companies. Housing is still dead. Exports are benefiting from a weaker dollar /quotes/comstock/11j!i:dxy0 (DXY 77.78, -0.37, -0.48%), but foreign markets aren’t expanding as fast as they once were.

In basic terms, the economy is getting used to a reduced living standard:

And you can forget about any increased demand from the government.

Add it all up and you have to wonder: Where is the growth going to come from?

To answer that question in one word…nowhere. We are out of money. All levels of government, companies, and individuals have financed deficits for years and the jig is up.

This will take years to unravel.

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