Durable goods orders fall off a cliff

The U.S. economy is behaving more and more like Europe as 2012 unfolds. According to a report by the Commerce Department this morning, durable goods orders, a measure of demand for capital equipment and machinery, fell a staggering 13 percent in August. A broader measure of economic performance showed even worse news. Previous estimates of second quarter GDP growth were reduced again. The latest tally suggests the U.S. economy grew at just 1.25 percent in the second quarter. This figure is dramatically less than the anemic rate of 1.7% that was previously forecast.
Commentary by Jim Spence - Whether or not these dismal figures will affect the upcoming November elections is anyone’s guess. Some polls suggest voters do not realize or do not care that President Obama has been steering U.S. policies towards mirroring those of Europe where economies are also imploding. An example of this type of Obama voter is captured on this recent video. Other polls suggest that Americans have a strong sense that the nation’s economic woes are being damaged by public policies that have resulted in an 8% drop in median household income over the last twelve months while an additional fifteen million U.S. citizens have been added to the food stamp rolls since 2009.

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