Household spending grows at the same time as our household debt is the highest on Earth. Meanwhile, our exports are down over 10% in Q3.
Amid the latest “great” economic report, the establishment media has been singing the praises of the economy, and talking about how wonderful everything seems to be going.
Yet as always, the truth about the economy can be seen under the surface – and it raises serious doubts about how “strong” the economy actually is.
For example, economic growth in Q3 was driven by household spending. Yet even with that spending, growth slowed to 1.7% – which is rather anemic.
Yet, that growth itself is more vulnerable than is being reported, since it’s based upon our country having the highest household debt levels on Earth.
Any economy can “grow” based on massive debt, but much of that growth is inevitably lost in a recession down the road.
Even worse, exports fell by a full 10.2%. That drop was in large part due to weakness in the automobile sector, while with jobs and production being shipped out of Canada to the U.S. and Mexico.
So, we have weaker exports, and growth fuelled by what is literally the worst household debt burden on Earth.
That doesn’t sound “great” to me.