(Don Pittis – CBC News)
Expect turmoil in the transition, from deflated asset bubbles to rising rates
On the face of it the numbers certainly look good.
With every revision, the U.S. Commerce Department has upped its estimate. On Friday, its third and final assessment showed gross domestic product increasing at a healthy rate of 4.6% this spring.
Five percent growth in a mature advanced economy is a strong number. Since the Second World War, the average U.S. annual growth rate has been just over 3%. But more important, it is easy to forget that despite all its troubles, the economy of our southern neighbour remains the world’s hugest. Five percent growth in that single economy represents something near a trillion dollars added to the globe’s economic activity.
And for the country’s biggest trading partner, that kind of growth cannot help washing over the long undefended border. Read more here.