This is actually a contraction. American economy has over-extended itself by about 30% during the last 30 years. European Union economy is over-extended probably by 20% and Chinese economy is dependent on American market for 25% of its GDP (Gross Domestic Product) and so it goes around the world. It is time this anomaly is corrected. The architect of this over-extension is Former Fed Chairman, Paul Volcker who faced an unacceptable rate of inflation at 13.5% and then a stagflation. He used the monetary policy to curb the money supply and by 1983 he was able to get a handle over the US economy. President Ronald Reagan reappointed him to the Fed and then took all the credit for the subsequent economy. This all began in August 1979.
Filed under: American, International Tagged: | American economy, Chinese Economy, European Union economy, Former Fed Chairman, GDP (gross domestic product), neither a recession nor a depression, Paul Volcker, President Ronald Reagan, This is actually a contraction
