Contraction Q211

Tony Pallota believes that the economy will contract in the second quarter. First quarter data showed that consumers were still spending despite food and fuel increases and flat wages, investments were still making progress but export trade was down as import trade was up. Government spending contributions were slowing down GDP growth
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Banks weren't lending so the government was the bank. As the government spending slows, so does the economy. Tony says that if the government further cuts spending, "the level of contraction will be unprecedented".

The national debt can will be kicked down the road until 2012 ...then until the Ponzi scheme collapses.