Posted on 04/27/2023 6:20:08 AM PDT by Diana in Wisconsin
WASHINGTON — The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced inventories.
Thursday’s estimate from the Commerce Department showed that the nation’s gross domestic product — the broadest gauge of economic output — weakened after growing 3.2% from July through September and 2.6% from October through November.
The slowdown reflects the impact of the Federal Reserve’s aggressive drive to tame inflation, with nine interest rate hikes over the past year. The surge in borrowing costs is expected to send the economy into a recession sometime this year. Though inflation has steadily eased from the four-decade high it reached last year, it remains far above the Fed’s 2% target.
The housing market, which is especially vulnerable to higher loan rates, has been battered. Consumer spending, which fuels roughly 70% of the entire economy, has softened. And many banks have tightened their lending standards since the failure last month of two major U.S. banks, making it even harder to borrow to buy a house or a car or to expand a business.
(Excerpt) Read more at channel3000.com ...
Depressing charts & graphs at link.
How do you slow down when you are already stopped?
Like 0bama said when he was in office that this is the new norm.
Lying statistics.
Rush called it managing the decline.
Higher rates are supposed to lead to a slowdown. That’s how you battle inflation. Unfortunately, massive deficit spending is just going to keep fueling inflation, which will lead to more rate hikes. The government will be reluctant to cut spending, fearing that it will lead to an even deeper recession. Round and round it goes. We have painted ourselves into an economic corner.
How ‘bout that Biden economy?!? Happy days are here again.
They can’t allow a statistic proving a recession is happening. Not now. There is a “very important election” coming up. And even though the election fraud mechanisms of 2020 and 2022 remain largely undisturbed by disinterested RINOs, they don’t need any subversive anti-regime economic headlines coming out that might awaken the sleepers.
The feedback loop you just described is well known.
But recall in this case, there is a control operator that is actually causing it: Biden’s restriction of oil production, which led to the big jump in inflation in the first month of his illegitimate takeover of the Presidency.
Nothing will actually change until that is fixed. Which it will not, because the murder of the American economy is a principal goal of the transnational fascists known as “globalists” who control everything the dessicated husk known as Biden does.
Feels like we’re already in a depression - I know I am depressed every time I look at my grocery, utility bills and every time I fill up my car.
I see no end in sight, yet the Biden admin continually claim the “dollar is healthy” and the “economy is doing great.”
5% of GDP is defict (fiat) spending. So the calulation is really 5% - 1.1% = -3.9% GDP ( negative ).
The price of food and gas has plummeted less than a fraction of a %. Not sure where to spend all that extra cash.
“So the calculation is really 5% - 1.1% = -3.9% GDP (negative).”
Exactly.
I’ve totally changed my shopping habits. I hit three different stores now to get the lowest prices on everything I can. It’s a PITA, but it’s the least I can do to put as little money back into Brandon’s disaster of an economy.
I can just imagine what prices are like out by you. The Midwest, and Wisconsin in particular, is still doing OK economically, for some reason. It’s sure not our Governor doing anything. *SNORT*
And, yes. I know it’s on purpose. And here I thought I was hunkered down during the 0bama Reign of Error! Glad I kept those skills. ;)
And things won’t be getting any better anytime soon, until President in Exile Trump is back at the helm. ;)
Unless GDP growth exceeds deficit spending then GDP is negative yr over yr.
This was unexpected!
Fortunately, grocery prices aren’t any higher here than I’ve seen anywhere else in my travels. They’re just high all over from what I can see.
There is SO much competition here - when I venture out to get groceries I have many many nearby choices - three local Ralphs, Sprouts, Whole Foods, Grocery Outlet - plus a nearby Walmart and Target, both with good, large grocery sections.
I usually go to Ralphs on Fridays because they have 4X gas points on that day and I can easily rack up 1,000 points - I love coupons too and often there are gas coupons for even more points. This adds up to $1.00 off/gallon at Shell, which really helps offset the $5.00/gallon gas price.
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