Posted on 01/30/2013 5:46:18 AM PST by Perdogg
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
(Excerpt) Read more at cnbc.com ...
Sorry to disagree with you but a 3% drop in GDP is not based upon a cut in government spending...that would be a huge huge cut in spending that simply did not occur.
I went to the Treasury Department and checked expenditures for the third quarter and the fourth quarter...I saw expenditures were up by over ten percent. Small increases in consumer spending which has been low is perhaps some improvement...but is not something to write home about.
Those defense contractors are laying people off now, the “savings” from government not investing in private sector that has been established for a long time is going to cost in GDP exponentially the first quarter. Not to say that we should not cut spending, but defense is the one industry sector for the government that actually has a probable good velocity of the dollars spent cause it is entered into an established private sector...
You aren’t disagreeing with me. You are disagreeing with facts in the report from the BEA:
“Real federal government consumption expenditures and gross investment decreased 15.0 percent
in the fourth quarter, in contrast to an increase of 9.5 percent in the third. National defense decreased
22.2 percent, in contrast to an increase of 12.9 percent. Nondefense increased 1.4 percent, compared
with an increase of 3.0 percent. Real state and local government consumption expenditures and gross
investment decreased 0.7 percent, in contrast to an increase of 0.3 percent.”
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
Here’s the table with the data: http://www.bea.gov/newsreleases/national/gdp/2013/txt/gdp4q12_adv.txt
If you have issues with their reported data I suggest you take it up with them.
That’s the old joke at GM. A friend of mine was the Chief Risk Officer there.
At senior exec meetings they would note that “we are losing $2,000 per car.”
“yeah, but we make it up on volume!”
Bookmark
Who cares...The Mexican illegals work for cheap and think company benefits mean a 10 minute break and don't bitch.
When they're all awarded with legitimacy and given a pass after breaking our laws, they'll want more money. At that point we'll just roll out the red carpet for millions more low wage illegals...
These people need jobs...Who gives a damn what Americans want! Why should the government care that tens of millions of Americans are unemployed or under employed?
Tough luck Americans...
And never mind others who break the laws...You just keep paying those taxes or else!
If the economy shrank, the recession is back on. It’s amusing because the reporter cannot bring himself to say that.
You can find actual expenditures here: http://www.fms.treas.gov/mts/mts.pdf
If you look, you will find expenditures were greater in the fourth quarter than the third...perhaps there is different accounting used?
you will have to scroll down to the appropriate time frames. In any event a 3% drop in GDP cannot be explained by their analysis...that is truly a huge drop!
GDP dropped 0.1% not 3%. Could be the annualization by he BEA and each quarter is on a Seqsonally Adjusted Annualized Rate (SAAR). This allows for every quarter to be compared to another quarter taking seasonality into account. This is similar to the Housing Starts numbers. For example December starts were reported at 954,000. There were not 954,000 starts in December there were only 61,500 but the seasonal factor applied gets it to 954,000 seasonally adjusted annualized rate. The GDP data is also SAAR. That could account for the difference but I’m guessing a bit.
The comparison could also have a difference between cash and accrual based accounting. Also guessing...
GDP did drop more that 3%...third quarter gdp growth rate was 3.1%...fourth quarter was -.1%. That is a huge drop...please go study gdp numbers by quarters for the past thirty years or so and you will see what I am talking about.
Yes, these are seasonally adjusted rates, most of the stats you see reported will be seasonally adjusted...otherwise question their relevance.
So.....
We are printing 85 BILLION A MONTH = ONE TRILLION A YEAR
and we are borrowing through budget deficits ONE TRILLION A YEAR PLUS
So....we are pulling 2 trillion out of our fiscal butt and
THE ECONOMY IS SHRINKING?
and the dems say its because of less Defense Spending? So that means that our economy is, despite 2 trillion dollars a year pumping into it, STILL dependent on Government Defense Spending?
But the Dow is over 14000?
Splain.
and the Dow keeps climbing......is that because its the only game in town? A Ponzi scheme that will come tumbling down, but when?
It’s a reflection of the printing press, all that hot money needs to go somewhere. Zimbabawe was the #1 stock market for a while for that very reason too.
With that said, the drop in Apple and others suggests to me we might be in for a huge drop.
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