Looks as though the US economy is not growing as fast as the economies in Europe or Japan, the UN is prepared to say.
I’m not sure why this is such big news, as it happened in 2001 as well, and happens from time to time, usually when the US is in a recession. But right now it’s a mix of housing market troubles and a booming world economy which is propping up everyone who isn’t the US.
The fact the UN is making a big hub-bub about it is rather odd. I guess it’s their way of saying, “Socialism rules, Bushitler!”
And don’t be surprised if housing drags the US into a mini-recession. Combined with a Fed that’s not really paying attention to indicator markets, I’m sure we’ll see the US economic growth stagnate in 2008-2009 (bad news for whoever gets elected President, I’m sure). But once the housing market hits equilibrium again and the Fed cuts interest rates, we’ll see the economy pick up steam.
And mark my words– $3.00 gas is here to stay, but unless we have another Katrina-like storm wreck output and refining capabilities along the gulf coast, don’t expect to see any major gas price jumps this winter, but don’t expect a major decline in prices. I’ll go out on a limb and say that the mean price of gas will hover around $2.70-2.80 a gallon, about where it is now, through the winter, and we can expect heating oil prices to remain steady.
If you want to see a decrease in the price, get a local refinery built, as that’s one of the reasons prices have been so high lately.