Declining US Economy

Read these signs of the times as being an indicator for why YOU should be getting out of debt, post haste. Debt is not a joke, ever. But being in debt when teh national economy is in debt and declining is definatly the worst of all possible worlds. A hard landing of the US economy might just be in the future.

According to the report issued by the US Council of Economic Advisers on November 21, the US Government has revised down the expected economic growth rate over three years - 3.1 per cent for 2006, 2.9 per cent for 2007 and 3.1 per cent for 2008.

The original projections were 3.6 per cent in 2006, 3.3 per cent in 2007 and 3.2 per cent in 2008.

The revision is obviously connected to the current sliding of the growth rate of the US economy.

After going through seasonal adjustment, the growth rate of the US economy in the third quarter of this year registered merely 1.6 per cent, a record low since the first quarter of 2003. The growth rate stood at 5.6 per cent for the first quarter and 2.6 per cent for the second quarter.

The likelihood of the US economy's making a hard landing increases against this context. Moreover, a medium-term stagnation could come in 2007. The expected growth rate could be downgraded further, taking into account the deteriorating economic situation.