The ghost of David Ricardo must be sending chills up the
spines of the economists of Europe and Japan. They may not understand what
causes those chills because of the poverty of their education. The US may soon
experience a similar visit. Here is how the Wall Street Journal put it in email
newsletter:
Can the U.S. go it alone? All of a sudden, economic data from around the world is looking decidedly worrisome. China on Thursday showed stark, sudden slowdown in lending and home buying in July, while Europe’s second-quarter results confirmed everyone’s worst fears, with Germany registering a contraction for the quarter and the euro zone as a whole failing to grow. This comes after a very big slowdown in the same quarter for Japan, the world’s second-biggest economy.
