Final GDP number out this week for 2nd-Qrt, it is going to around 1.8%.
The economy is growing at 1.8%. The federal debt is growing at close to 5%. Sooner or later you have to get the growth of debt lower than the growth of the economy. Good luck doing that with this bunch.
Remember that about 8 weeks ago they started adding about 3.5 % to the gdp bottom line by adding in government spending and hollyweird future receipts to the bottom line. I guess hollywerd’s big losses this summer will not be figured into the formula, as it would remove some of the benefit of cooking the numbers in the first place.
If the number is 1.8% then the US economy is in actuality contracting. With total US GDP at about $16 trillion and with the FED pumping in $1 trillion/yr via ‘liquidity(QE3&4)’ this $1 trillion amounts to around 6% of total GDP. If every dollar injected is spent, by theory the US should be seeing ‘growth’ of close to 6%/yr. What happened to that 4.2%? I maintain this liquidity injection is masking contraction.