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U.S. GDP Contracts for First Time Since 2009
Reuters ^ | Published January 30, 2013 | Reuters

Posted on 01/30/2013 8:04:57 AM PST by Mr. K

The U.S. economy unexpectedly contracted in the fourth quarter, suffering its first decline since the 2007-09 recession as businesses scaled back on restocking and government spending plunged.

Gross domestic product fell at a 0.1 percent annual rate after growing at a 3.1 percent clip in the third quarter, the Commerce Department said on Wednesday.

That was the worst performance since the second quarter of 2009, when the recession ended, and showed the economy entering the new year with no momentum.

The contraction, coming against a backdrop of tightening fiscal policy, could spur fears of a new recession and create an urgency for policymakers to deal with outstanding budget issues

Read more: http://www.foxbusiness.com/economy/2013/01/30/us-gdp-contracts-for-first-time-since-200/#ixzz2JTVQQEGl

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


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS:
Sustained growth of 3% is what they need for healthy economy.

Now it is actually shrinking. So tax revenue to the government will go down, but spending will still be going up, so deficit will grow even more than $1.6 TRILLION PER YEAR!

Our grandchildren are going to hate us

1 posted on 01/30/2013 8:05:04 AM PST by Mr. K
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To: Mr. K

Surprise, surprise, surprise!


2 posted on 01/30/2013 8:10:35 AM PST by Empireoftheatom48 (God help the Republic but will he?)
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To: Mr. K

unexpected....except by all of us out here in the real world


3 posted on 01/30/2013 8:15:30 AM PST by BookmanTheJanitor
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To: Mr. K

Zimbabwe has $217 we can still borrow.


4 posted on 01/30/2013 8:16:48 AM PST by blackdog (There is no such thing as healing, only a balance between destructive and constructive forces.)
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To: Mr. K

It has been suggested that the only thing holding up the GDP number has been the runaway deficit spending by the federal government. That’s why deficit spending is so important to Obama and the Democrats/Media.


5 posted on 01/30/2013 8:18:05 AM PST by Senator_Blutarski
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To: Mr. K
...could spur fears of a new recession and create an urgency for policymakers to deal with outstanding budget issues.

Gee, here's an idea, how about Senate Democrats create a budget in the first place!

6 posted on 01/30/2013 8:20:47 AM PST by Obadiah (We must commit to remove every Senate Blue-dog Democrat from office in 2014!)
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To: Mr. K
Keynesian economics is that the government spends to replace contraction in the economy. 22% less in defense spending but a fourth quarter increase is spending.
1st: 966,188

2nd: 884,957

3rd: 809,969

4th: 907,912

7 posted on 01/30/2013 8:23:45 AM PST by wmap
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To: Mr. K

Employment is down 3.3% since BHO took office, i.e. roughly 6 million less people have jobs now than at any time under George W. Bush. GDP growth has been anemic. New housing sales are still down. Family income is down.

The worst part of the Bush recession was better than the BHO recovery. But the press will continue to sing their ‘Messiah’s’ praise. To do otherwise would reveal the utter bankruptcy of their godless beliefs.


8 posted on 01/30/2013 8:38:12 AM PST by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
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