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Your Wednesday Afternoon Dose of Doom & Gloom

July 31st, 2013 - 12:42 pm

I really didn’t want to write about today’s GDP report and revision, but I wouldn’t be much of an internet jerk pundit if I didn’t. Also I had Melissa hide all the razor blades and sleeping pills. So let’s get to the beef, or what there is of it. WSJ makes nice with the headline:

U.S. Economy Grows Faster Than Expected

Woo-hoo! Happy days are here again! Only not really, because the expectation was for a crap sandwich and what we got instead was a crap sandwich with a small Diet Coke. That is, until the Q2 revision comes in three months from now. But let’s get to the actual numbers:

The nation’s gross domestic product, the broadest measure of goods and services produced across the economy, expanded at an annualized 1.7% pace from April to June, beating expectations for a 0.9% increase. The second quarter reading follows a downwardly revised 1.1% for the first quarter of 2013.

Pretty gloomy stuff, since 1.7% is barely treading water. To recover from this “recovery,” we need 3% growth, but 4% would be even better — and there’s nothing not doable about 4% growth; we just have policies that are all wrong. But WSJ has plenty of spin for you:

Broad revisions to GDP figures also showed that the U.S. economy expanded at a stronger pace in 2012 than was previously thought. GDP last year expanded at a 2.8% pace versus a previous estimate of 2.2%, according to the revised figures released by the Commerce Department. The change comes as part of a comprehensive overhaul of gross domestic product data dating from 1929 through the first quarter of 2013.

Do you feel any richer because Commerce rejiggered the math? Yeah, me neither. Also left unsaid: 2.8% growth was “purchased” if you will, by borrowing a trillion dollars directly from our kids, and by the Fed conjuring up $85,000,000,000 every month to prop up the twin bubbles of housing and equities. If you don’t feel like doing the math, that’s two trillion in one form or another of stimulus just last year.

That’s two trillion out of a 16-trillion-dollar economy. In other words, we borrowed or printed more than 12% of last year’s GDP, just to generate sub-3% growth.

If you think that’s sustainable, there’s probably an administration job available to you.

Comments are closed.

Top Rated Comments   
Steve, you pointed out the massive borrowing and subsequent government spending which gets counted towards GDP growth. So 12% increased spending to get less than 3% growth? That is just "hiding the decline", to borrow a phrase. That means we are seeing a massive 9% decline, which explains the decline in the total number of people working. 9% decline! Holy Mother of God!
1 year ago
1 year ago Link To Comment
These idiots, and I'm being exceptionally nice here, count "presumed pension payouts" today based on employee contributions to pension funds as part of today's economy. Really? Do you idiots ever consider Detroit, et al? Do you actually think those pension plans will be paid as designed? Oh, I see, you expect that the funds will be paid but by the Feds not the city or state which made the obligation. They also count today the assumed "profit" from entertainment [movies, CDs, DVDs, etc.] and R&D expenditures. If you think all movies make a profit I have a very nice piece of land in Florida I'd like to offer you. Ask any corporation how much profit they think they make from direct R&D investments.
1 year ago
1 year ago Link To Comment
You said the word "black"! #RASCISTOMGWTFBBQ!!11!!

Also, you're an optimist. We'll have to rejigger things all the way back to the cretaceous.

I can't wait for Jay Carney to explain that Obama's record on manufacturing looks very positive compared to large, ravenous, land-roving reptiles.
1 year ago
1 year ago Link To Comment
All Comments   (15)
All Comments   (15)
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like Fred replied I'm surprised that anyone can make $9041 in a few weeks on the computer. did you see this web sitehttp://www.wep6.com
1 year ago
1 year ago Link To Comment
before I saw the receipt which was of $5221, I didnt believe ...that...my friend woz realie earning money in their spare time on their computer.. there sisters roommate haz done this less than six months and at present paid the dept on their cottage and got a top of the range Jaguar E-type. we looked here......http://www.wep6.com
1 year ago
1 year ago Link To Comment
Steve, you pointed out the massive borrowing and subsequent government spending which gets counted towards GDP growth. So 12% increased spending to get less than 3% growth? That is just "hiding the decline", to borrow a phrase. That means we are seeing a massive 9% decline, which explains the decline in the total number of people working. 9% decline! Holy Mother of God!
1 year ago
1 year ago Link To Comment
Democrats Plan For America - Get Rid Of The Rich, Institute A National Healthcare System—Then We Will Have Complete Control

http://www.youtube.com/watch?v=_xENTzsarZg&feature=c4-overview-vl&list=PL3CAC89DA0FEA9045
1 year ago
1 year ago Link To Comment
Obama is killing America. But you all knew that. Here's the bad news. He's going to go on killing America without consequence to him, his minions or his party because the GOP is AFRAID. It's that simple. The GOP is terrified that to oppose this murderous thug and his regime would make them racisss. And so it will continue. To the end. There is nothing, literally nothing worse in this world than cowardice. Cowardice will kill us.
1 year ago
1 year ago Link To Comment
These idiots, and I'm being exceptionally nice here, count "presumed pension payouts" today based on employee contributions to pension funds as part of today's economy. Really? Do you idiots ever consider Detroit, et al? Do you actually think those pension plans will be paid as designed? Oh, I see, you expect that the funds will be paid but by the Feds not the city or state which made the obligation. They also count today the assumed "profit" from entertainment [movies, CDs, DVDs, etc.] and R&D expenditures. If you think all movies make a profit I have a very nice piece of land in Florida I'd like to offer you. Ask any corporation how much profit they think they make from direct R&D investments.
1 year ago
1 year ago Link To Comment
Geez, Obama's America sucks. We should all move to Canada. At least then we'd have healthcare. But then we'd all have to eat poutine - maybe not a bad thing!
1 year ago
1 year ago Link To Comment
I wonder if poutine is made from real poot?
1 year ago
1 year ago Link To Comment
Don't forget Tim horton's coffee and donuts.
1 year ago
1 year ago Link To Comment
Plus, isn't this the GDP report that uses the newer, larger, and "Improved" GDP calculation methodology that added in new and duplicative "product"?
1 year ago
1 year ago Link To Comment
I don't even think that 1.7% is a crap sandwich with Diet Coke. Its just a crap sandwich without the crusts being cut off.

That is among the more abusive uses of the word "unexpectedly", since the "expected" GDP report would have been a clear signal of another recession.
1 year ago
1 year ago Link To Comment
dude, 1.7% is only half a crap sandwich, served with one of those miserable little bags of potato chips with like chips in them...
1 year ago
1 year ago Link To Comment
May have to rejigger things all the way back to the height of the Black Death.
1 year ago
1 year ago Link To Comment
You said the word "black"! #RASCISTOMGWTFBBQ!!11!!

Also, you're an optimist. We'll have to rejigger things all the way back to the cretaceous.

I can't wait for Jay Carney to explain that Obama's record on manufacturing looks very positive compared to large, ravenous, land-roving reptiles.
1 year ago
1 year ago Link To Comment
Ironically, the cretaceous was the last time airlines were profitable.
1 year ago
1 year ago Link To Comment
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