Billions of dollars blown into bailing out the top Banks of US and the country’s gross domestic product, grew at a meagre annual rate of 1.3 percent in the second quarter, after having grown at an annual rate of 0.4 percent in the first quarter between January and June. To make matters worse, total loss of economic output in the 2007-2009 recession was revised to 5.1% from a previous estimate of 4.1%. The data comes at a time when the White House and Congress are locked in a battle over how to raise the debt ceiling to allow the government to borrow more money. If they cannot agree, the government will soon run out of money, leaving it unable to pay items such as social security payments, military pay and interest payments.
So much for all the quantitative easing and so much for not taking over the banks, cleaning them and handing over back to the market force
...and third world is busy fighting inflation!!! Raising rates killing domestic businesses dependent on domestic consumption- thanks to unaccountability of US government to the globalization and to the globe.
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