By John Mauldin of Mauldin Economics
These 2 Charts Show the Next Recession Will Blow Out the US Budget
The weakest recovery in modern history has stretched on for 69 months.
By 2017, it will be the third-longest recovery without a recession since the Great Depression. By 2018, it will be the second longest.
Only during the halcyon economic days of the 1960s have we seen a longer recovery; but that record, too, will be eclipsed sometime in 2019—if we don’t see a recession first.
And note that we were growing at well over 3% in the 1960s, not the anemic 2% we have averaged during this recovery and certainly not the positively puny 1.5% we have endured lately.
Global growth is slowing down.
Given the limited number of arrows left in the Federal Reserve’s monetary policy quiver, the US is going to have a difficult time dealing with the fallout from a recession.
Even worse, a number of factors are coming together that will require serious crisis management.
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