Skip to comments.US economy grows at 1.7 pct. pace in 2nd quarter
Posted on 07/31/2013 5:57:57 AM PDT by Mad Dawgg
WASHINGTON (AP) -- The U.S. economy grew from April through June at a seasonally adjusted annual rate of 1.7 percent, as businesses spent more and the federal government cut less.
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"Bull" and "S**T"
AP puts lipstick on a pig.
Wait for it...
Wait for it...
Wait for it...
DOWN... to 1.1%
Minitrue is working overtime!
1.7% annual “bu!!$hit”
The inflation rate is somewhere around 10-15%!
Corrupt insidious tyranny! Wake up froggie, you’re boiling!
How much again are they understating inflation in those statistics?
And how much growth is required just to keep pace with our growing population?
So 1Q was revised from 1.8 to 1.1.
And we are supposed to have any confidence in the 2Q number?
Or is this like the weekly unemployment - the revised is always worse than initial and then that makes new announcement that much ‘better’ even though is purely an apples and oranges headline?
So 1.7 is greatly improved and has momentum? Is that the headline? Um, no. It should not be it. It should be 1.7 as compared to 1.8 (both initial reports). The ‘revised’ will likely be around 1.0 with the track record. Of course then a 1.5 in 3Q will still read as a positive.
The manipulation of headlines is getting so, so tiresome.
The entire GDP model/calculation was revised back to 1929. The comparison between the 1.8% and 1.1% is apples and oranges.
Now ANY growth is hailed as proof that the Messiah's economic prowess is greater than any President in history, and that the "recovery" is in full swing.
From the BEA release:
Comprehensive Revision of the National Income and Product Accounts
The estimates released today reflect the results of the 14th comprehensive (or benchmark) revision of the national income and product accounts (NIPAs) in conjunction with the second quarter 2013 “advance” estimate. More information on the revision is available on BEAs Web site at www.bea.gov/gdp-revisions.
Qtr 1 GDP Growth:
2.4% - Initial estimate
1.8% - First Revision
1.1% - Second Revision
Qtr 2 GDP Growth:
1.7% - Initial Estimate
The initial estimates are just phony numbers made up to generate headlines. 1.7% is bad in any way you look at it, and far below the 3% growth needed to drive hiring and really reduce unemployment.
They had to revise it down, otherwise this last quarter would be lower than the first quarter and we’d be half way to an official recession.
Oh what the hell, they can make up better numbers than this. Why not tell us the economy grew one billion percent? I mean, if you’re going to lie, make it worth while.
Impeachment File on Benghazi Coward B. Hussein Obama, formerly known as Barry Soetoro, currently a Legal Citizen of the Sovereign Nation of Indonesia.
Summer of Recovery V5.0 (tm)
With growth like this, we’ll be back to full employment in 2027!
Absolutely right! The economic ledgerdemain of this administration knows no bounds. They will continue to distort and "revise" the basis for any problematic numbers that show the economy in a bad light.
Their greatest fear is a slide back into recesssion before the next election. They will never let that happen and will cook the numbers anyway they can to avoid the perception that things are going downhill.
This deceitful manipulation has become pervasive and systemic. But the eocnomy is so weak that even with this blatent maniplation, the numbers are STILL BAD!
HOWEVER, GDP(1) was revised from +1.8% down to +1.1%.
That’s a downward revision of nearly 40%. If a similar revision occurs with Q2 it will be revised down to just 1% growth — even after redefining how the GDP is calculated (i.e., using a more generous method).
A clear and excellent post. Great summary.
EXACTLY! See my similar post #18.
That's an interesting mathematical point. Are they calculating the Q2 improvement from the "revised down" number from the previous quarter? If that's the case, it would be more mathematically accurate to not revise up or down, but just compare the new number with the one that was given for the previous quarter.
We're now in wonderland, where the economy always goes up because it's lowered to something it can go up from.
And right now the Fed needs good headlines to raise rates.
We’re now in wonderland, where the economy always goes up because it’s lowered to something it can go up from.
That’s true, except in the case of the weekly unemployment reporting where the previous week’s number is always revised up, so that the current week’s number will tend to look like a drop.
Regardless of how they do it, this economic ledgerdemain reduces the impact of political bad news. Right now, Yahoo Finance is touting “Better US Economic Growth” as one of their headlines. This is the type of “wonderland” headline they wanted from their friends in the media.
there are large scale revisions done all the time so it’s not just this administration. Here is a list of them back to 1997:
Thank you, that’s good objective feedback and I respect that. Facts and accuracy are always good to get into the conversation.
Having said that, this administration has cleary been bending and distorting facts for political ends. It’s not just economics; there are numerous scandals and constant dissembling that have characterized this administration from day one. Just yesterday Art Laffer was actually laughing out loud at some of the new and obviously absurd ways of calculating the GDP that were introduced. So while other administrations have allowed revisions to economic calculations, I doubt that they were so conveniently blatent as the ones Obama has been fostering.
Take away quantitative easing, and what does it look like?
I'll go with "the 1930s"...