GDP on Recession Track

Townhall.com ^ | January 28, 2012 | Mike Shedlock

[Kaslin]

The headline real GDP number of 2.8% does not sound too bad until you dig beneath the surface. A full 1.9 percentages points of that 2.8% was inventory replenishment. Real GDP vs. a year ago is +1.6% and that is on a recession track as well.

Five-Year Treasury Yield Hits Record Low

[Kaslin]

The SRM (State Run Media) is in the pocket of the administration and does not want anyone to see the real facts

[central_va]

Subtract the deficit spending and GDP is at negative 8 percent.

[blam]

U.S. Economy Waist Deep In The Big Muddy (Peter Schiff)

[!1776!]

The SRM (State Run Media) is in the pocket of the administration and does not want anyone to see the real facts

Agreed, but I don't understand how subtracting "inventory replenishment" makes sense as a qualifier used to detract from the braod GDP results?

If all economic cylinders were firing, inventory replenishment would be one key factor regardless. While I do think economic growth is being surpressed by current policies, I guess I'm a little confused as to why ineventory replenishment should be subtracted from a gross economic number like the GDP?