December 10, 2012
The US economy is sluggish with fears of a new recession. The Democrats and Republicans once more cannot agree on what to do about the alleged “fiscal cliff” that threatens to further unravel the economy, even as analysts say that the whole notion of going over the “cliff “ has been fabricated by the right to force more cuts in social benefits.
Consumer confidence is dipping in this festive season of global shopping–not a good sign, since consumption and spending at the malls is an economic driver with 70% of economic activity based on getting consumers to buy even when it means they must go deeper and deeper in debt using credit cards and loans.
What can the Obama government do? The political stalemate has blocked new jobs and stimulus programs so reliance on Federal Reserve Bank interventions has grown, but they are not printing enough money to turn things around.