It’s almost as if the GDP numbers are wrong.
Perhaps the reason why nothing makes sense is because someone is cooking the books.
The GDP figures are artificially high because of the money we borrowed to fund deficit spending by 0bama and friends.
FORTUNE`s lie by omission- Obama/Soetoro rigged, er, revised, GDP numbers to include “ intangibles” such as films, books,R&D, magazines and iTunes songs !
VOILA ! GDP goes up, economy is roaring, Obama/Soetoro`s neo-marxist economics is genius:
FINANCIAL TIMES:
“
The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.
Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output.
Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.
“We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.
At present, R&D counts as a cost of doing business, so the final output of Apple iPads is included in GDP but the research done to create them is not. R&D will now count as an investment, adding a bit more than 2 per cent to the measured size of the economy.” “
Apple products are made in China , so remove the new definition of GDP, remove the Trillions being printed by the Fed, the borrowing of the Treasury and most likely the REAL GDP is in negative territory.
When they added government spending to the GDP, any net increase in that spending is a rise in GDP.
The fact that that money they are spending is a net drain on real growth in GDP never crosses their minds. Or if it does, they bury it deep and smile big...
How about this..... (for part of the growth)
If we assume the economy has plateaued and companies have adapted and learned to operate at the new level, It is not unreasonable to assume that managers can tinker with what they have and develop operating efficiencies.
That tinkering results in positive change at the plateaued level. More output at the current or slightly reduced employment level is growth.