Bonner on weak US data, the Chinese economy and summer travel
from Boom Bust The US Commerce Department announced that the US economy shrank 0.7% in the first quarter, revising down their initial estimate that the economy grew by 0.2%. A smaller accumulation of business inventories and a larger trade deficit were responsible for much of the downward revision along with the strong dollar and plunging investment in oil exploration. There was also a modest downward revision to consumer spending as well. Boom Bust Host Erin Ade weighs in. Then, Boom Bust guest host Ameera David is joined by Bill Bonner – founder of The Daily Reckoning. Bill gives us his take on why the US economy is not improving. And Bonner also tells us what role he expects alternative currencies to play in the next cyclical downturn. After the break, Bianca Facchinei takes a look at how the stigma of traveling with children, rowdy or not, has affected the travel business – specifically airlines – as summer travel chaos approaches. Afterwards, Erin is joined by Wang Guan – chief political correspondent at CCTV America. Guan gives us the Chinese perspective on proprietorship of the islands that make up the South China Sea and gives us his take on if China will hit their growth target. And in The Big Deal, Erin and Edward Harrison continue the discussion on travel.