There are all sorts of bad signs now coming out of the US economy.
The Economist reports that the US housing market is in freefall, wiping out household wealth. Sales fell 33% from April to May, home prices have plummeted over the last six months and millions of homeowners are underwater while the unemployment rate remains near 10%.
Over in cash-strapped California, state workers are being put on a slave wage of $7.25 an hour, personal savings are in decline and The Telegraph reports that the US Treasury is looking to print lots more money to stop the country spinning into a deflationary spiral with US interest rates close to zero and the US government spending itself into near bankruptcy. Meanwhile, the United Nations says it's time to dump the US dollar because it's unreliable and no longer stable.
All this seems to fly in the face of forecasts by the International Monetary Fund which says the US economy will grow at 3.3% but has warned the Obama administration to cut its debt. Obama has pumped nearly one trillion dollars into the economy to get it going again.
But so far, all the signs say it's not working.
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