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5 Big Reasons For You To Doubt The GDP Growth
The Daily Reckoning ^ | 10/31/09 | Rocky Vega

Posted on 10/31/2009 6:10:45 PM PDT by peeps36

It's true, the 3.5 percent third quarter GDP growth could be a good sign of good things to come...but most likely that's not the case. Brian Sullivan of FBN has put together five reasons why the US is not recovering.

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


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS:

1 posted on 10/31/2009 6:10:46 PM PDT by peeps36
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To: peeps36

In October the total number of people filing for some kind of unemployment rose to over 10 million for the first time in history, and no new jobs are replacing the ones that are lost.


Where’s the media? Telling us of ‘green shoots’ , recovery just around the corner, GDP is up.....


2 posted on 10/31/2009 6:16:51 PM PDT by Freddd (CNN is not credible.)
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To: peeps36

printing 10 trillion dollars and spending it, can contributes to increase in GDP. Zimabawee GDP growth is like $2109830924803284023 Zimbawae dollars, but it doesn’t mean anything


3 posted on 10/31/2009 6:20:29 PM PDT by 4rcane
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To: peeps36

Inflation is not factored into GDP so maybe inflation is taking off.


4 posted on 10/31/2009 6:25:42 PM PDT by RDasher ("El Nino is climate, La Nina is weather")
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To: peeps36

You only need ONE reason: the entire GDP growth was due to Cash for Clunkers and First Time Homeowners gimmee programs, e.g. Gov’t spending. Wait and see when the next report comes out.


5 posted on 10/31/2009 6:26:06 PM PDT by bigbob
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To: peeps36

It’s all smoke and mirrors like the during the previous administration, but we’ve run out of bubbles, except for the government bubble.


6 posted on 10/31/2009 6:27:26 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Freddd

If a lie is told enough times eventually the listener will believe it.


7 posted on 10/31/2009 6:31:15 PM PDT by refuse2lose
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To: RDasher
Inflation is not factored into GDP so maybe inflation is taking off.

Since when?

8 posted on 10/31/2009 6:31:29 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: bigbob
You only need ONE reason: the entire GDP growth was due to Cash for Clunkers and First Time Homeowners gimmee programs, e.g. Gov’t spending. Wait and see when the next report comes out.

By then they will have revised these numbers downward, making the new numbers look better when they come out. They do that with all the other data that comes out these days.

9 posted on 10/31/2009 6:34:19 PM PDT by Cementjungle
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To: peeps36

Ya, it is a job loss recovery. The manufacturing jobs are still leaving the country. If a factory opened here wanting a thousand people they would have 10,000 applications just like the Target distribution center had in Lincoln County, NC. The country is being deliberately ruined and the chronies are still ticks using the public treasuries. How can things get better when planning is about controlling a demolition?


10 posted on 10/31/2009 6:35:37 PM PDT by poodle
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To: peeps36
The 3.5 percent growth in GDP is roughly equal to an additional $112 billion dollars in output quarter-over-quarter, but we spent $173 billion on stimulus over that same period. Basically, GDP gained about 65 cents for every dollar spent on stimulus, not exactly a win.

A plausible criticism, sounds like.

11 posted on 10/31/2009 6:55:26 PM PDT by secretagent
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To: peeps36

Greetings from Olympia, WA

12 posted on 10/31/2009 6:58:23 PM PDT by They'reGone2000 (I regret having to report THEY'RE BACK.)
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To: They'reGone2000

I’d call that “Portrait of a Loser”


13 posted on 10/31/2009 7:02:58 PM PDT by Finny ("Raise hell. Vote smart." -- Ted Nugent.)
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To: They'reGone2000

Millionaires picking thje pockets of the poor?

Riiiiight ...


14 posted on 10/31/2009 7:03:38 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: peeps36

“3.5 percent third quarter GDP growth”

Hmmm ...

Components of GDP

GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M).

Which one (which component) grew again?


15 posted on 10/31/2009 7:07:14 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: peeps36

“3.5 percent third quarter GDP growth”

Hmmm ...

Components of GDP

GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M).

Which one (which component) grew again?


16 posted on 10/31/2009 7:07:18 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: peeps36

Bump for a morning read.


17 posted on 10/31/2009 7:08:15 PM PDT by LuvFreeRepublic (Support our military or leave. I will help you pack BO!)
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To: peeps36
Do you like your cooked books medium are well done.
18 posted on 10/31/2009 7:08:54 PM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: Finny
I’d call that “Portrait of a Loser”
But, to listen to the Libs, those are the guys WE need to go to for a job, not the rich b*stards who could actually pay one of us ...
19 posted on 10/31/2009 7:09:14 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: _Jim
Components of GDP

GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M).

Which one (which component) grew again?

The first 3 grew.

20 posted on 10/31/2009 7:23:11 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: peeps36

Summary of the five reasons for those joining us...

1. O
2. B
3. A
4. M
5. A

Any questions?


21 posted on 10/31/2009 7:27:53 PM PDT by PugetSoundSoldier (Indignation over the sting of truth is the defense of the indefensible.)
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To: Toddsterpatriot

“The first 3 grew.”

Come again?


22 posted on 10/31/2009 7:30:46 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: refuse2lose

“If a lie is told enough times eventually the listener will believe it.”

The government and media have been lying to you for decades. The correct answer is right in front of you but as you said the government (through the state controlled media) controls what you think. Here’s the answer to the biggest lie in history but if you’re a typical American, you’ll wait for the media to tell you what’s the right answer even though you can see it, people heard it, and the audio recording proves it.

http://www.youtube.com/watch?v=cwjM2wVwFQs


23 posted on 10/31/2009 7:36:34 PM PDT by scgator
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To: peeps36

3.5 GDP should make us feel good, like taking a cash advance on a credit card to improve our financial status.


24 posted on 10/31/2009 7:39:01 PM PDT by Thrownatbirth (.....Iraq Invasion fan since '91.)
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To: _Jim

The first 3 added to GDP growth, the last one subtracted from GDP growth. Clear?


25 posted on 10/31/2009 7:43:41 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot
Force multipier; Rush can put it better than I can:

RUSH: They're not. Look, you can try to cover up 10% unemployment all you want with a phony GDP number of 3.5%, you can go out there and say you saved the economy, but there are no jobs. Obama is gratified, but by his own benchmark his economy is still failing. Now, let me see if I can put this GDP number into context for you, 'cause it's phony. It is a fake number. Gross domestic product needs to be understood as the sum of three things: consumption by consumers, investment by business, and spending by government, CIG. Consumption, investment, spending by government. So they say the total GDP went up 3.5%. But was there any new consumption by consumers? No. Was there any new investment by business? No. Was there spending by government? Yes. That's the G. The increase is in G, spending by government.

There was no investment in business. There was no consumption by consumers. You've seen all the numbers. Home sales down; consumer spending down. There was no economic growth. What happened here, you had the Clash for Clunkers fiasco and now the Edmunds.com bunch estimates that that program cost taxpayers $24,000 for every car sold, and then there was that first time home buyers fraud, all kinds of government spending which was government borrowing. So the government spending sector goes up, and they, oh, the economy grew by 3.5%. It did not. Government grew. All that's happened here is that money has been shifted from taxpayers today and tomorrow into Obama approval ratings today.


26 posted on 10/31/2009 7:46:20 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: _Jim
Force multipier; Rush can put it better than I can:

Was this supposed to refute my post?

27 posted on 10/31/2009 7:54:56 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: RDasher
Inflation is not factored into GDP so maybe inflation is taking off.

Every figure of GDP growth I've ever seen has included inflation, otherwise the late 1970s would have been our most prosperous time ever. Now whether inflation is calculated correctly is another matter entirely.

28 posted on 10/31/2009 7:56:52 PM PDT by KarlInOhio (Soon everyone will win a Nobel Peace Prize for not being George Bush...well, except for George Bush.)
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To: Toddsterpatriot

Forget it. I give up. Probably a first (for me), but we’re all forced to do so sooner or later.


29 posted on 10/31/2009 7:57:46 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: Thrownatbirth
3.5% GDP growth should make us feel good. Like taking a cash advance on a credit card to improve our financial status.

Even better. We borrowed our kid's and grandkid's credit cards. Whoopee!!! Let's go to town!!

30 posted on 10/31/2009 7:59:38 PM PDT by ProtectOurFreedom
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To: _Jim
Forget it. I give up.

I understand, you're confused and don't want to admit it. Don't let it get you down.

31 posted on 10/31/2009 8:00:28 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot
I understand, you're confused and don't want to admit it. Don't let it get you down.
No, I find myself responding to a very thick individual who answered my first question with a stupid reply.

Any body with a portion of a working mind could see I was asking a rhetorical question about the make-up of that 3.5% figure.

Furthermore, your answer was wrong.

A correct answer has not yet been made (hint: the excerpted text from Rush's site can get you there).

But, as I said, I give up; you're too thick ...

Geez.

32 posted on 10/31/2009 8:07:56 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: _Jim
GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M).

Which one (which component) grew again?

The first 3 grew.

This was a stupid reply? How's that?

Any body with a portion of a working mind could see I was asking a rhetorical question about the make-up of that 3.5% figure.

So you didn't want to know what components of GDP grew.....okay.

Furthermore, your answer was wrong.

Really? Could you show me?

33 posted on 10/31/2009 8:13:43 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

End


34 posted on 10/31/2009 8:14:30 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: _Jim

Run away. LOL!


35 posted on 10/31/2009 8:17:23 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

End


36 posted on 10/31/2009 8:21:53 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: _Jim
Yeah, like I said, run away.

If someone without their head up their ass wants to see the real components, they can look here.

Pages 8 and 10 have some good, non-rhetorical numbers.

37 posted on 10/31/2009 8:26:25 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

End


38 posted on 10/31/2009 8:27:19 PM PDT by _Jim (Conspiracy theories are the tools of the weak-minded.)
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To: _Jim

LOL!


39 posted on 10/31/2009 8:27:44 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: RDasher

It’s all borrowed and printed money. They lie.


40 posted on 10/31/2009 9:08:45 PM PDT by VRWC For Truth (Throw the bums out who vote yes on the bail out)
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To: Toddsterpatriot

Consumption grew? Well yes, but only because of government subsidies like Cash for Clunkers and first time homeowners giveaway.

Investment grew? Well yes, through $1.4 trillion newly printed or borrowed dollars from the government.

Government spending grew? Well, I certainly would expect that what with $787 billion in Porkulus spending.

Those who believe real GDP grew in the 3rd quarter probably also believe there were 600,000 jobs created or saved so far this year.
This is all cooked and fabricated information as I can tell.


41 posted on 10/31/2009 9:28:35 PM PDT by Newtoidaho (Liberals are nothing more than drooling buffoons. Spread the word.)
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To: Newtoidaho
Consumption grew?

Yes it did.

Well yes, but only because of government subsidies like Cash for Clunkers and first time homeowners giveaway.

And unemployment benefits.

Investment grew?

Yes.

Well yes, through $1.4 trillion newly printed or borrowed dollars from the government.

You bet.

Government spending grew?

Absolutely.

Well, I certainly would expect that what with $787 billion in Porkulus spending.

You got it.

Those who believe real GDP grew in the 3rd quarter

You mean the people who believed your post? The post where you spelled out the 3 areas of GDP growth?

42 posted on 10/31/2009 9:50:20 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

I guess we have a difference of opinion over what “real” means. What I see is fake.

This government has no credibility, I don’t believe anything they report.


43 posted on 10/31/2009 10:00:34 PM PDT by Newtoidaho (Liberals are nothing more than drooling buffoons. Spread the word.)
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To: Newtoidaho
I guess we have a difference of opinion over what “real” means. What I see is fake.

Consumer spending was fake? Investment was fake? Government spending was fake?

I wish all the government borrowing and spending was fake, but I live in the real world.

This government has no credibility, I don’t believe anything they report.

The numbers you report have more credibility?

44 posted on 11/01/2009 7:03:59 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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