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US economy ground to a halt in 3d quarter ---- US looks dead in the water, inflation devouring demand stimulus the government poured into post-Covid economy
asiatimes.com ^ | October 28, 2021 | David P. Goldman

Posted on 10/28/2021 5:06:47 PM PDT by elpadre

Net of inventory accumulation, real GDP for the third quarter was slightly negative, US government data released Thursday morning show. Real GDP grew at an annual rate of 2%, below the forecasters’ consensus of 2.6%, the Commerce Department reported. But a jump in inventories added 2.07 percentage points annualized to GDP. That’s more than the reported growth.

That’s a very odd number, considering that the inventory-to-sales ratio of US business stands at the lowest level on record, due to supply-chain constraints that prevent businesses from restocking. It’s likely that the inventory number was exaggerated. If that’s true, the US economy shrank during the third quarter.

The GDP measure of inflation rose at a 5.7% annual rate during the third quarter, following a 6.2% rate of increase during the second quarter. After inflation, final sales to domestic purchasers rose at an annual rate of just 1%. That’s a textbook portrait of stagflation.

Disposable personal income fell at a 0.7% annual rate, as prices outstripped income growth. By the Labor Department’s measure of prices and average wages, real earnings of US workers have fallen by about 2% over the past year despite nominal pay raises averaging about 4%.

Disposable personal income and fixed investment, including residential fixed investment, both fell slightly. The reported fall in residential investment knocked 0.38 percentage points off 3rd quarter growth, which means that the 20% annual rate of housing price inflation was higher than the rate of increase of home buying in terms of nominal dollars. Business investment also fell (except for the nebulous “intellectual property” category).

There are plenty of inflationary pressures still in the system. Freight volume is unchanged from 2019, according to the authoritative CASS index, while the cost of shipping is up 50%. Home prices continued to rise at a ...(more at link)

(Excerpt) Read more at asiatimes.com ...


TOPICS: Business/Economy; Government; News/Current Events
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1 posted on 10/28/2021 5:06:47 PM PDT by elpadre
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To: elpadre

the concluding paragraph

“...Altogether, the available data show the United States dead in the water, with inflation eating up all the demand stimulus that the government poured into the post-Covid economy. And all the price indicators suggest that it is getting worse”


2 posted on 10/28/2021 5:08:56 PM PDT by elpadre ( ying them.)
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To: elpadre

The Chinese, Ruskies and Iranians are cheering.


3 posted on 10/28/2021 5:09:13 PM PDT by Don Corleone (leave the gun, take the canolis)
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To: elpadre

Somebody supported these stupid Democrat sons of bitches.

Probably the same cowardly idiots who come here and write that the Republicans are in charge.


4 posted on 10/28/2021 5:09:44 PM PDT by blueunicorn6 ("A crack shot and a good dancer”)
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To: elpadre

But, but, he said:

“The Biden Plan is working.”

-Joe Biden


5 posted on 10/28/2021 5:10:28 PM PDT by Nathan _in_Arkansas (Hoist the black flag and begin slitting throats. )
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To: elpadre

...and we’re less than 1 year in to this disaster. Buckle up.


6 posted on 10/28/2021 5:10:48 PM PDT by politicket (Don't remove a Bernie Sanders bumper sticker. It's the only thing holding the car together!)
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To: elpadre

The way to get rid of corrupt and rotten celebrity Democrat culture is to strictly enforce it.


7 posted on 10/28/2021 5:10:58 PM PDT by OttawaFreeper ("The Gardens was founded by men-sportsmen-who fought for their country" Conn Smythe, 1966 )
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To: Don Corleone

This is what Biden is taking to Europe - they will surely keep him at an arms distance - a proven loser!!

Maybe this is why the Pope has canceled all live coverage of his meeting with Biden.


8 posted on 10/28/2021 5:11:47 PM PDT by elpadre ( ying them.)
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To: elpadre

*sigh*

basic econ 101, if you give everyone more money, the price of everything goes up.


9 posted on 10/28/2021 5:13:29 PM PDT by TexasFreeper2009
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To: elpadre

They’re trying to push a string.

L


10 posted on 10/28/2021 5:13:59 PM PDT by Lurker (Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: elpadre
Don't blame it on China Virus.

Blame it on canceling the Keystone Pipeline, canceling the Atlantic Coast Pipeline, canceling fracking, coal, and oil leases.

Cheap energy equals prosperity. No energy equals poverty.

Blame it on Biden.

Brandon did this.

11 posted on 10/28/2021 5:14:20 PM PDT by Governor Dinwiddie (LORD, grant thy people grace to withstand the temptations of the world, the flesh, and the devil.)
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To: elpadre
"It's a big club, and you ain't in it."

Actually , it's a small club...but you still ain't in it.

...but they'll continue to beat you with it.

12 posted on 10/28/2021 5:15:06 PM PDT by RckyRaCoCo (Please Pray For My Brother Ken.)
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To: blueunicorn6
Easy there. It was the gop last year leading the charge in spending. Nothing like sending stimulus checks to the blm looters.
13 posted on 10/28/2021 5:15:19 PM PDT by Theoria
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To: Theoria

Here’s one! Here’s one!


14 posted on 10/28/2021 5:17:14 PM PDT by blueunicorn6 ("A crack shot and a good dancer”)
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To: elpadre

15 posted on 10/28/2021 5:23:59 PM PDT by BipolarBob (I had to change my homepage because it was embellished somewhat. Apologies to all.)
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To: elpadre

Not from me.

Finally got a new p/u delivered.

Bought plenty-o-pure-qas to feed it.

Started stocking up on long term food.

Increased hording of paper products.


16 posted on 10/28/2021 5:31:12 PM PDT by Paladin2 (Critical Marx Theory is The SOLUTION....)
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To: elpadre
The Democrats have their knees on our necks, and business can't breath.

Damn, I'm good.

17 posted on 10/28/2021 5:31:13 PM PDT by Jeff Chandler (THE ISSUE IS NEVER THE ISSUE. THE REVOLUTION IS THE ISSUE.)
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To: elpadre

This is why they are pushing people to buy Christmas gifts now, to try to push up the numbers.


18 posted on 10/28/2021 5:34:27 PM PDT by Aut Pax Aut Bellum (What did Socialists use before candles? Electricity)
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To: Paladin2

I’m amazed how little inventory the local car dealers have. Some of them it’s almost hard to tell if they’re still in business.

And used prices are off the charts. I used to be able to buy decent beaters for 3 grand. Those days are gone.


19 posted on 10/28/2021 5:39:24 PM PDT by nascarnation (Let's Go Brandon!)
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To: OttawaFreeper

Amen to that brother.


20 posted on 10/28/2021 5:40:06 PM PDT by redshawk ( I want my red balloon. ( https://youtu.be/zNLpfEDliV0)
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