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Econometer: Will we be better off in 2014?

Consensus among U-T's 16 economists and CEOs is yes

Roger Showley, U-T SAN DIEGO

Friday, January 3, 2014

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Kelly Cunningham, National University System

Answer: No

With the U.S. staying on course to overspend and borrow from the future, not for investment but continuing to consume, the economy grows ever more vulnerable and subject to much greater and eventual inevitable correction. With the Fed continuing quantitative easing and maintaining low interest rates, the dollar will eventually collapse causing even more damage to the U.S. economy. Creditors will eventually force necessary financial discipline that elected leaders refuse to face. That discipline will result in a sovereign debt and currency crisis sending consumer prices soaring, pushing the economy deeper into recession, and exerting massive upward pressure on interest rates.