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Obama and the Press Pretend There’s ‘Clearly’ a Recovery

Magical thinking from Obama and his spellbound MSM.

by
Tom Blumer

Bio

June 6, 2013 - 12:05 am
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As the Benghazi, IRS, press surveillance, and other scandals creep inexorably closer to the doors of the Oval Office and ever more deeply into the president’s inner circle, a key component of Team Obama’s scandal exhaustion predicament or strategy, depending on how craven you believe they are — namely that we shouldn’t obsess over such things because the economy, in the words of leading Associated Press lapdog 0, is “clearly, if slowly” recovering — is showing serious signs of crumbling.

Economic reports during most of May trended slightly positive. But since Memorial Day, the news has gone decidedly downbeat:

  • That Thursday, first quarter growth in gross domestic product (GDP) was revised down from an annualized 2.5 percent to 2.4 percent. That would appear to be no big deal, but the component changes from the original estimate in April were. Personal consumption’s contribution to GDP growth increased by 0.24 points to 2.48 points. In other words, everything else besides the consumer spending which Keynesians still erroneously believe drives sustainable growth was a wash. Within that wash, reported growth in exports of goods virtually disappeared, contributing only 0.03 points instead of an originally estimated 0.34, indicating that the rest of the world is rapidly losing interest in buying more of our manufactured stuff, while the private investment components which really generate long-term growth made tepid contributions.
  • Also that Thursday, seasonally adjusted initial unemployment claims, which had been trending slowly downward, increased for the second straight week to 354,000, just above the largely mythical threshold of 350,000 which supposedly drives the unemployment rate down.
  • Friday’s key report was on consumer spending and income, both of which fell during April for the first time in a year — “unexpectedly,” of course.
  • On Monday, the Institute for Supply Management’s Manufacturing Index fell into contraction for the first time in six months to its lowest level since June 2009, the official final month of the recession.
  • On Wednesday, ADP reported disappointing private-sector job growth for the second straight month. The payroll, HR and benefits giant shows a combined total of 248,000 such jobs added in April and May. That’s not going to get a job-market recovery done.

As of when this column was submitted, it appeared that the government’s May report on job growth to be released on June 7 might come showing seasonally adjusted growth of 170,000. Given ADP’s precursor, that seems optimistic. But even if the report hits that number, there’s a good chance, thanks to ObamaCare’s 30-hour definition of a “full-time employee” requiring coverage under an employer’s existing health plan, that the total number of hours worked will come down, as was the case in April. Additionally, and as usual, the numbers before seasonal adjustment will be the ones to really watch.

Even the AP’s Christopher Rugaber, who inexplicably wrote ”gone are the fears that the economy could fall into another recession” in early April, appears to be getting nervous, calling Friday’s personal spending drop “a sign that economic growth may be slowing.” You don’t say?

In what has to considered the height of irony given their recent solidarity with Occupy Wall Street — support which was never withdrawn despite the movement’s murders, rapes, attempted terrorist acts, and other crimes, all spiced with boorish incivility, an undeserved sense of entitlement, and unspeakable filth — the one thing about which Obama and the left can crow is the performance of the stock market, which continues to hover near all-time highs. But, building on the irony, it’s bad news for everyone else which drives the markets upward, while good news pushes them down.

Comments are closed.

Top Rated Comments   
everything is "unexpected," isn't it, even those things that totally predictable. Up is down, bad is good, freedom is slavery; or is the latter the other way around? Hard to keep up anymore with an administration that does whatever it wishes and a president who knows nothing about anything.

The media was momentarily upset when some of its own wound up in the crosshairs of the very bunch it has helped escape accountability. But I guess the appropriate "we're sorry" was said and a nice lunch was served and it's back to status quo. Meanwhile, the Repubs hope someone will look to them simply because they're not Dems and the likes of Lindsay Graham have no issue with the Verizon/NSA story. Lather, rinse, repeat.
45 weeks ago
45 weeks ago Link To Comment
Why does this article remind me of Germany?
Seriously; Obama thinks "growth" is the Democrat bank account showing more deposits from donors that "like" their performance. The same way Obama's personal account magically show deposits every month because he is so well liked.
And the Boston Bomber gets donations because he is liked, too.
When America's economy is completely in shambles, Obama's bank account will explode with contributions. He and his media apparatchiks will have their own private beach in Venezuela to bask in the sun and drink pina coladas with their manna from heaven.
45 weeks ago
45 weeks ago Link To Comment
In the Soviet Union there was a saying, "We pretend to work, and they pretend to pay us."
In the US under Obama it can be adjusted to "They pretend there's a recovery and we pretend we have money."
Just wait until the coming collapse occurs, it's going to make the 1930's look like a boom.
45 weeks ago
45 weeks ago Link To Comment
All Comments   (33)
All Comments   (33)
Sort: Newest Oldest Top Rated
Well after all the president is a fraud and almost half of the voting population voted for him,twice! Why should he change now? What has he to lose? The left only gets 'progressively ' worse as they get away with their deception and the size of the government dependent, benefits over freedom, population grows!
45 weeks ago
45 weeks ago Link To Comment
We have in full view (except for the he/she/it behind the curtain) the Great Pretender's of the O regime. As an entity, the fine art of lying and pretense has been taken to new heights. Don't think I've seen anything to compare to this charade.
45 weeks ago
45 weeks ago Link To Comment
I remember when 3% GDP growth was "anemic". Of course that was during the Bush years, amazing the changes that can occur with stats !
45 weeks ago
45 weeks ago Link To Comment
We're tired of eating cake paid for with counterfeit money, we need red meat.
45 weeks ago
45 weeks ago Link To Comment
IF there is a recovery...someone please tell me why replacement tire sales are 53% of what they were a couple of years ago and oil recovery from shops that do oil changes is less than 50% of what it was a year ago...!
45 weeks ago
45 weeks ago Link To Comment
I wonder when people will realize that Bernanke's bond binge is the only keeping the US in positive GDP territory. In that case, one can argue that deflation on a global scale is a terrible possibility.

Ben has to keep QE going in light of the President's and Congress's fiscal and regulatory policies. It's a lose-lose situation out there.
45 weeks ago
45 weeks ago Link To Comment
The Bernanke Bubble:
Stocks dropped on Tuesday, and Wednesday, and are down right now (6/6-1130PT).
So much for Great Expectations.
45 weeks ago
45 weeks ago Link To Comment
everything is "unexpected," isn't it, even those things that totally predictable. Up is down, bad is good, freedom is slavery; or is the latter the other way around? Hard to keep up anymore with an administration that does whatever it wishes and a president who knows nothing about anything.

The media was momentarily upset when some of its own wound up in the crosshairs of the very bunch it has helped escape accountability. But I guess the appropriate "we're sorry" was said and a nice lunch was served and it's back to status quo. Meanwhile, the Repubs hope someone will look to them simply because they're not Dems and the likes of Lindsay Graham have no issue with the Verizon/NSA story. Lather, rinse, repeat.
45 weeks ago
45 weeks ago Link To Comment
The socialist, communist, progressive, liberal, democrats have been "selling" Recovery ever since the New Deal. All the while, they are going back behind the "Recovery" destroying our Constitutional, Rule of Law Republic. We need to rid ourselves of these America haters and get back to our Constitutional roots.
45 weeks ago
45 weeks ago Link To Comment
Apparently the anointed one is still choomin heavily at the White House (is that name politically incorrect?). How else to take his read on the economy?
45 weeks ago
45 weeks ago Link To Comment
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