Thursday, November 3, 2016

"US Economy Grew at Its Strongest Pace in 2 Years"

US Economy Grew at Its Strongest Pace in 2 Years

By THE ASSOCIATED PRESSOCT. 28, 2016, 2:00 P.M. E.D.T.

The US economy has grown a lot within the last years, but it's very likely that it has peaked for the time being. In the July-September quarter it grew to it's best pace since 2014, especially after having a mediocre first half. There was a lot of exporting of soybeans to South America during that quarter, which probably won't happen again soon. Consumer spending has slowed since last quarter as well. They are saying that the economy is at a "fragile equilibrium." Although the growth in the third quarter was significant, economists predict the total growth rate for the year will only be about 1.6 because of the low rate of the first rate.

I'm glad that our economy is expanding, but it's too bad that the economists have little faith in the economy in the future. I think it's interesting really how much exports really effect how well our economy does. So it makes you wonder why we really don't have as much agriculture and stuff here in America. We are almost entirely a service industry, which is good, it's proof of a developed country, and I don't know much about how much agriculture costs, but it seems beneficial for us to not have to import everything.

http://www.nytimes.com/aponline/2016/10/28/us/politics/ap-us-economy-gdp.html

Tuesday, October 25, 2016

"As China's Economy Slows, a Look at What Could Happen"

As China's Economy Slows, a Look at What Could Happen

By NEIL GOUGHOCT. 18, 2016 NY Times

China's growth rate of their economy has been slowing down year by year. Although it has been a fairly steady decline each quarter, this year's growth rate is slower than last years, which was already China's slowest growth rate in the last 25 years. Most economists say there could be three outcomes of this decline. The first is a financial meltdown, as China has a whole lot of credit piling up. The second is an increase in state spending to try to increase the growth rate. The third is the Japan outcome: tolerating economic stagnation for a time.

I did not know that this was happening in China, it's very interesting, I need to read more on why the growth rate is slowing. I really don't think that this will cause any sort of major financial crisis for China. Although the growth rate is slowing, at least there still is a growth rate, and it is fairly stable. I definitely don't think this will be a huge problem for other countries either, nothing like Europe struggling with the UK. I really am not sure which outcome China will face but hopefully it won't be for a while. I think I agree the the Japan outcome is probably the best for China. You just have to stick it out sometimes!

http://www.nytimes.com/2016/10/19/business/international/china-economy-slows-impact.html?_r=0
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Tuesday, October 18, 2016

"UK's September Inflation Surge Likely a Taste of More to Come"

UK's September Inflation Surge Likely a Taste of More to Come

By REUTERSOCT. 18, 2016, 8:21 A.M. E.D.T.

Post Brexit, the UK is facing the largest inflation jump they've had in two years. This is probably

only the beginning for their economy. It's the highest it's been since November 2014. Prices are

rising, which also means wages are falling for consumers. It is likely that this latest fall

could push inflation to 3% within the next year. A lot of the inflation is due to the sudden jump

in clothing prices (biggest since 2010), and rising fuel costs.

Okay! This makes me kind of mad because we all knew it was coming. When Brexit was being

voted on, person after person was pointing out how weak the pound would become, and here

we are. It's interesting that so many people voted for Brexit without properly examining all of

the consequences that would follow (which kind of reminds me of a certain presidential

election with a certain orange candidate). The economy is going downhill, prices are rising yet

people still need the same stuff. Wages are going down so it's going to get continually harder

to be able to purchase things! What I do wonder is why the economy was so bad back in 2014?

And is the economy really going to get a lot worse? Maybe the economists are wrong. Hopefully

this is the worst of the storm. All of this reminds me of the year that school districts had to lay

off hundreds of teachers from their staff. Something like that could very well happen soon.

http://www.nytimes.com/reuters/2016/10/18/business/18reuters-britain-inflation.html?_r=0

Tuesday, September 27, 2016

"China Industrial Profits Rise Most in Three Years as Economy Stabilises"

China Industrial Profits Rise Most in Three Years as Economy Stabilises

NY TIMES by: REUTERSSEPT. 27, 2016, 1:57 A.M. E.D.T.

In China's industrial market this past August, profits rose at the fastest rate in three years. Could it be that the

second largest economy in the world is finally stabilizing? Steel, oil and auto industries were the driving force in this

jump. The growth in the market has stabilized, but it is hard to say if it will stay that way. The property market,

for example, is a "double-edged sword." Although sales improve growth, it also can cause financial risk. The economy is

way up, especially since last year. Seeing how they do in the fourth quarter will really tell if the economy will remain stable

or not.

I'm glad to see that China's profits are on the rise. I think it's very interesting that suddenly they are up in August

without much of an explanation. I think that does make it kind of hard to say whether the economy will stabilize or

not because there are still major fluctuations like these. They could still run into some major problems. I think the author did

a very good job covering all the possibilities of what could happen and why, while keeping it very informational.

The use of facts and statistics really makes it impossible to disagree with them.

http://www.nytimes.com/reuters/2016/09/27/business/27reuters-china-economy-industrial-profits.html?_r=0