Friday, July 25, 2008

U.S. June Durable Goods Orders Up 0.8%

It continues to be a housing and banking crisis, not a full fledged recession.

Orders for U.S.-made durable goods surged in June, rising 0.8% on stronger demand for primary metals, machinery and electronics, the Commerce Department reported Friday. Excluding the 2.6% decrease in transportation goods, orders rose 2.0%, the sharpest gain since last December.

What happens from here will depend on Federal Reserve monetary policy. If the Fed adopts the stance of double digit money printing, as they did earlier this year, the economy will turn strong and inflation will soar. If the Fed continues on its no growth policy of the last two months, we are headed towards a depression.

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