U.S. and UK GDP Fall Heralds Recession – ZIRP to Continue
By: GoldCore
GoldSeek.com
Thursday, 30 April 2015
– U.S. first quarter GDP grew 0.2%, down from 2.2% last quarter
– U.K. GDP for first quarter was 0.3%, last than half the previous quarter’s figure
– Large inventory build up in the U.S. may mask deep recession
– Zero percent interest policies (ZIRP) to continue despite suggestions to contrary
– Global economy vulnerable to recession and depression
U.S. and U.K. GDP slowed very sharply in first quarter of 2015. Latest data confirms the rapid slowdown despite stock markets booming in the UK, U.S. and globally.
This highlights the major disconnect between the real economy and a financial sector intoxified by easy money.
U.S. GDP figures fell sharply from last quarter when the economy grew at 2.2%. GDP for the first three months of this year fell to 0.2% with some analysts suggesting the real figure should be in negative territory.
The news of a slowing U.S. economy had a negative impact on sentiment in the export dependent Asian economies and indeed on vulnerable EU economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.1 percent with South Korean, Australian, Chinese and Hong Kong shares suffering losses as did European indices.
The abysmal U.S. GDP figure was buoyed by the biggest inventory build in history. GDP grew by $6.3 billion in Q1 2015 whereas unsold inventories increased by a phenomenal $121.9 billion.
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