Suffering from a debt hangover for the past four years, Americans will resort to a time-honored cure -- hair of the dog that bit them. A pickup in borrowing will give the world’s biggest economy a much-needed boost next year as federal government austerity pinches growth.
Unemployment in the U.K. fell to the lowest level since April 2009, China’s economy cooled and U.S. sales of existing homes last year were the strongest since 2006, economic reports are projected to show this week. Elsewhere, price data will dominate, with Brazil likely to show consumer inflation in the month through mid-January rising by the most in a year, while pricing power in Australia also picked up in the fourth quarter.
By this time, anyone with a heartbeat knows that there is some sort of unique financial rock formation posing a threat to the U.S. economy at year-end; that if President Barack Obama and Congress don’t find a way around it -- something at which Washington excels -- bad things will happen to all of us.