• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About
    • Our Mission
      • Political Islam
    • Areas of Expertise
      • Economic Warfare
        • Cyber Security
      • U.S. Policy
      • Anti-Corruption
      • Foreign Election Observing
      • Supporting Free Speech
        • Legislation
      • Impact of ACD’s Work
      • Free Speech Celebration, U.S. Senate
    • Board of Directors & Advisors
    • Our Team
    • Contact Us
    • Subscribe
  • Our Impact
    • Endorsements
    • Additional Praise
  • Media
    • Recent Interviews
    • Events
      • Coming Events
    • Radio
    • Television
    • Rumble / Youtube
  • Publications
    • All Posts Archive
    • ACD Presentations
    • Articles
    • Books
    • Papers
    • Recommended Readings
  • Free Speech
    • Legislation & Support
    • Impact of ACD’s Work
      • FREE SPEECH Act Celebration, U.S. Senate, September 20, 2010
      • Some Congressional Testimonies
  • Economic warfare
    • The Impact of Purposeful Interference on U.S. Cyber Interests
    • Cyber/Space, EMP Insecurity- Current and Future Threats
    • The Existential EMP Threat
    • New Strategies to Secure U.S. Economy from Cyber Attacks
    • Economic Warfare Subversions July 9, 2012
    • CyberSpace Security – Papers And Articles
    • Cyber Security
    • Da’esh “lite” North America Islamist – Sources
    • The Muslim Brotherhood and Da’esh “Lite” in North America
  • Support ACD
    • Donate
    • Subscribe
    • Contact
American Center for Democracy

American Center for Democracy

  • facebook
  • twitter
  • youtube
  • linkedin
  • Free Speech
  • U.S. Policy
    • U.S. Foreign Policy
  • Political Islam
    • Canada
    • Hamas
    • Iran
    • Islam
    • Muslim Brotherhood
    • Palestinian
    • United States
  • Narco-Terrorism
  • Middle East Conflicts
    • Iran
    • Israel
  • Global Conflicts
    • China
    • North Korea
    • Russia
    • Ukraine
  • Soros
You are here: Home / ACD/EWI Blog / US Risky Economic Recovery*

US Risky Economic Recovery*

June 2, 2015 by Norman Bailey*

Left: U.S. gross domestic product, 1st quarter revised to -0.7% from +0.2%. Source: Commerce Department

The US remains Israel’s most important market, but its economic recovery is stalling.

In recent years the Israeli government and the Israeli private sector have been very busy diversifying export markets and sources of financing and investment. They have concentrated on South Asia and the Far East, especially but not only India, China, Japan, South Korea and Taiwan. These countries and others have proven to be vital resources for the Israeli economy and in the case of China, an eager participant in joint educational projects as well.

This is all to the good and should be encouraged to continue. Nevertheless, Europe and the United States remain the major export markets for Israeli goods and important sources of financing and investment. Consequently, the state of the European and American economies is of fundamental importance to Israel’s economic future, at least in the near term.

The European economic/financial situation is well-known and depressing: relative stagnation in most countries, the eternal Greek debt crisis, the possibility of a British exit from the European Union and so forth. Less attention has been paid to the current situation in The United States. The general impression, with a strong dollar and booming financial markets is that the American economy is recovering nicely from the “Great Recession”.

Would that it were true. The facts are very different and much less positive, as underlined by the 0.7% decline in GDP in the first quarter of this year. Much of the previous growth was centered on investment in the energy sector, especially due to technological developments in oil and gas extraction (“fracking”). In a very short span of years as a result of the applications of these technologies, the US became gas self-sufficient and oil production soared for the first time in four decades, making the US the world’s largest oil producer and consequently the swing producer, a position that was for decades held by Saudi Arabia.

But while that was going on, not much else was. The Federal Reserve’s policies of keeping interest rates at close to zero and buying huge quantities of government and commercial paper (“quantitative easing”) has led to nothing more than a gigantic excess of liquidity in a financial market where savers are not saving because they cannot get a decent return and investors are not investing because of a lack of anything to invest in, partially due to a precipitous fall in economic innovation outside of energy. Capital expenditures never recovered to their pre-2008 level. As a result of all of this productivity has not grown and thus the market for labor has been stagnant, with large numbers leaving the job market.

As a result, real disposable income has stagnated and consumption has been correspondingly weak. With the collapse of the oil price, frackers have cut back on production, wells have been shut down and capital expenditure greatly reduced. Thus the only remaining engine of growth has stalled.

In the meantime, the public debt level continues to increase yearly, leaving little for investment in national infrastructure, which is deteriorating rapidly. Symbolized by the Amtrak derailment in Philadelphia, the country that has led the world in constructing physical infrastructure, from the great canal projects of the late eighteenth and early nineteenth centuries, through the building of the railways in the nineteenth century, and the interstate highway system and gigantic dam projects of the twentieth century, is now watching helplessly as all this infrastructure decays and deteriorates.

Instead of over-liquefying the banking system, the United States should have been engaging in major public works programs, not only aiding productivity growth but putting many people to work. For reasons hard to fathom this was not done. As a result of a dismal outlook for the American economy, Israel cannot expect that essential market to grow anytime soon.

*Norman A. Bailey, Ph.D., is Adjunct Professor of Economic Statecraft at The Institute of World Politics, Washington, DC, and teaches at the Center for National Security Studies and Geostrategy, University of Haifa.

*The original article, Israel Can’t Depend on US Recovery, was  published by Globes Israel business news on June 2, 2015. © Copyright of Globes Publisher Itonut (1983) Ltd. 2015

 

Filed Under: ACD/EWI Blog, Economics, Economy, Europe, Israel, U.S. Tagged With: Norman Bailey

Primary Sidebar

Spotlight

website capture islamist incitement quote by j.woolsey obama signing Rachel's law chemical terrorism transportation terrorism nuclear threats on the rise winning the cyberwar gps concepts and misconceptions libel tourism

Search ACD

Recent Appearances

[5/1/2025] National Talk Radio with Shawn Moore

[3/11/2025] Shaun Thompson Interview

[3/10/2025] Larry Conners Interviews Rachel Ehrenfeld

[2/3/2025] The Truth About George Soros - Grey Matter Podcast

[1/22/2025] Fighting Terrorism Funding - SAM Podcast

[1/8/2025] COUNTER NARRATIVE Interview on PATRIOT.TV

[10/2/2024] The Shaun Thompson Show: Dr. Rachel Ehrenfeld

[9/30/2024] Counter Narrative: Soros Power Grab: Media Takeover & Election Manipulation |

[8/28/2024] SOS Blinken warns U.S. allies that Iran may attack Israel in the next 24-48hrs

[8/9/2024] Purham & Associates Show Special Guest: Rachel Ehrenfeld

[7/26/2024] Dr. Ehrenfeld on The Andy Caldwell Show

[6/12/2024] Dr. Ehrenfeld on The Shaun Thompson Show

[5/29/2024] Interview on Bill Martinez Live

[5/24/2024] CAEF presents "Soros is No Dreyfus: The Soros Agenda to Change America & his Anti-Israel Crusade"

[5/16/2024] Dr. Rachel Ehrenfeld on Jayne Carol Tonight - Portland, OR

[5/9/2024] How deep do the Soros ties go?

[5/6/2024] Dr. Rachel Ehrenfeld: The College Intifada-How Jew Hunting Became a Left Wing Blood Sport On Campus

[4/15/2024] Dr. Rachel Ehrenfeld on The Vic Poricini Show

[4/11/2024] The Andy Caldwell Show

[4/10/2024] Always Right Radio with Bob Frantz

[4/3/2024] Kacee Allen & Rachel Ehrenfeld - The Pelle Neroth Taylor Show

[3/12/2024] Rachel Ehrenfeld | Gunther Rewind - Podcast on iHeart Radio

[2/18/2024] תעלומת ג'ורג' סורוס ותרומתו למאבק נגד ישראל - פוקוס על אמריקה - Podcast on Spotify

תעלומת ג'ורג' סורוס ותרומתו למאבק נגד ישראל - פוקוס על אמריקה | Podcast on Spotify

[2/7/2024] Are We in World War III and Don't Know It? - Laura-Lynn Tyler Thompson

[1/23/2024] The Chris Smith Show - TNTRADIO.LIVE

[1/22/2024] 'Soros Agenda' Author Warns That Global Elites Could Steal '24 Election - One America News

[1/12/2024] Stacy Washington NOW Rachel on from 24:10 – 31:46.

[12/23/2023] Propagaza – Laura-Lynn Tyler Thompson

View ALL

The Soros Agenda

g. soros

Soros: The Man Who Would Be Kingmaker, Part I

Rachel Ehrenfeld & Shawn Macomber

Soros: The Man Who Would Be Kingmaker, Part II

Soros: The Man Who Would be Kingmaker, Part III

Soros: The Man Who Would be Kingmaker, Part IV

More about Soros...
ORDER THE SOROS AGENDA →
Buy The Soros Agenda

Tags

antisemitism Caliphate Canada capital punishment China Christians Daniel Haqiqatjou Dawah Disinformation genocide Hamas Iran ISIS Islam Islamic Party of Ontario Islamic Relief Canada Islamic Relief Worldwide Islamization Islamophobia Israel J. Millard Burr Jews jihad Justin Trudeau LGBT liberalism Muslim Brotherhood Muslims NCCM Norman Bailey Palestine Political Islam Quran Russia Salaheddin Islamic Centre Saudi Arabia Sharia Sol W. Sanders SOROS Syria Terrorism Toronto US USA women's rights

Footer

About ACD

ACD is a New York-based 501(c)(3) not-for-profit organization, which monitors and exposes the enemies of freedom and their modus operandi, and explores pragmatic ways to counteract their methods.

Endorsements

"The ACD/EWI ability to predict future threats is second to none"

- R. James Woolsey, former Director of Central Intelligence

- - - More Endorsements - - -

Follow ACD!

  • facebook
  • twitter
  • youtube
  • linkedin

Copyright © 2025 | The American Center for Democracy is a 501(c)(3) non-profit organization. Your contribution is tax-deductible to the fullest extent of the law.