Skip to comments.Oops! Economic Growth Wasn't So Great After All
Posted on 04/26/2013 5:42:42 AM PDT by Perdogg
U.S. economic growth regained speed in the first quarter, but not as much as expected, which could heighten fears the already weakening economy could struggle to handle deep government spending cuts and higher taxes.
(Excerpt) Read more at cnbc.com ...
Stand by for Recovery Summer 4.0!
Amazing, since the majority of earnings reports show losses in the top line (revenue). Only continuing cost cutting made it possible for companies to meet estimates on the bottom line (earnings per share), which means they cut employment and did not invest in new equipment etc. No economy grows with that burden, and ObamaCare hasn’t kicked in yet.
What a disaster Obama has brought on our economy!
Hang on tight everyone!
The media yawns.
DEEP GOVERNMENT SPENDING CUTS ARE WHAT IS NEEDED - not the pitiful, miniscule, Washington-style “cuts” (a smaller increase)
No, no, it clearly states: “not as much as expected”.
They’re working hard not to use the word they always use!
...deep government spending cuts... DEEP?
Government lingo translated for the low info voters:
Spending cuts = INCREASES in Govt spending this year will not be as much as we once planned.
Deep Cuts = Reduction of spending increases that we will make sure you notice as punishment for making us plan to reduce the amount of increase in our spending of your tax dollars.
The biggest problem with that is: the velocity of money, which the Fed is dumping into the markets combined with the Govt's deficit spending is enough to generate a 3 to 4% growth rate on its own. So, absent this money, the economy is actually contracting at an alarming rate.
1Q13 GDP was up +2.5% though that was well below the 3.0% consensus estimate.
1% of that was replenishing inventories.
Real personal consumption expenditures increased 3.2 percent in the first quarter, compared with an increase of 1.8 percent in the fourth. Durable goods increased 8.1 percent, compared with an increase of 13.6 percent. Nondurable goods increased 1.0 percent, compared with an increase of 0.1 percent. Services increased 3.1 percent, compared with an increase of 0.6 percent.
Real federal government consumption expenditures and gross investment decreased 8.4 percent in the first quarter, compared with a decrease of 14.8 percent in the fourth. National defense decreased 11.5 percent, compared with a decrease of 22.1 percent. Nondefense decreased 2.0 percent, in contrast to an increase of 1.7 percent. Real state and local government consumption expenditures and gross investment decreased 1.2 percent, compared with a decrease of 1.5 percent.
Any truth to this?
That's true, but it's not skewing this number since they backed the info into the old numbers for a more fair comparison.
How far back?
A little known bit, however, is WHY this change is taking place. Well, I can tell you: The U.N. Yes, that U.N. They developed a new UNIVERSAL system that all nations are to convert to, with the US being one of the first. Link Here
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