Posted on 01/28/2012 9:17:05 AM PST by 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
(Excerpt) Read more at finance.townhall.com ...
Subtract the deficit spending and GDP is at negative 8 percent.
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?
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