While the Democrats and their boosters in the mainstream media keep wishing to see the U.S. in recession, inconvenient facts point in the other direction. Second-quarter GDP growth of 3.3% shows a strong recovery gathering force following the collapse of the housing bubble, the ensuing credit lockup and escalation of world oil prices due to a shortage of supply. Federal Reserve Chairman Bernanke and Secretary of the Treasury Paulson, both selected by President Bush, have performed brilliantly to keep the nation from sinking into Japan-style deflation, which is enormously difficult to defeat -- as Japan's decade plus struggle shows.
There is still a lot of work to be done for GDP growth to reach potential, but the trendline seems to indicate that the disaster that could have been has been averted by prompt, skillful and innovative action.
Leave a comment