The U.S. economy is creating jobs at the fastest rate since the Global Financial Crisis; household debt has fallen from 130 per cent to 104 per cent of income; and the U.S. economy has been growing annually at a healthy 3 per cent – even the 2.9 per cent drop in the nation’s economic output in this year’s first quarter gave economists no cause for concern. But nt everyone is predicting rosy times ahead.

David Levy from the Jerome Levy Forecasting Center. Photo:

David Levy from the Jerome Levy Forecasting Center. Photo:

David Levy, of the Jerome Levy Forecasting Center, believes the U.S.’s dependence on struggling European markets will be enough to drag it into another recession.

Europe still struggles with bad loans from the GFC and high business debt. Low interest rates are turning away investors and contributing to sluggish E.C. growth. All this while the indebtedness of U.S. households reduces demands for European products.

Mr. Levy to suggest Europe may be dragging the U.S. into another Great Depression, rather than the other way around. Globalisation has made the U.S. more vulnerable to the economies of the world; with those economies unable to sell their products to the U.S. the money poured into European and Chinese businesses will evaporate – triggering further financial turmoil.

As we understand Mr Levy, it seems to comes down to this: To avoid defaulting on their loans the U.S. has to reduce its debt. To avoid defaulting on their loans Europe and China need the U.S. to increase its debt. The defaulting of either one will drag down the other.

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