Skip to comments.US Economy GDP Even Worse Than It Looks, Again
Posted on 05/30/2014 2:23:28 PM PDT by blam
May 30, 2014 - 10:21 AM
As expected, the US revised the most recent quarters GDP from barely positive to sharply negative today. But once again the true extent of the problem was hidden by some statistical sleight of hand, in this case wildly-optimistic inflation assumptions.
Heres an excerpt from the Consumer Metrics Institutes just-published analysis:
May 29, 2014 BEA Revises 1st Quarter 2014 GDP Sharply Downward to Outright Contraction at Nearly a 1% Annual Rate:
In their second estimate of the US GDP for the first quarter of 2014, the Bureau of Economic Analysis (BEA) reported that the economy was contracting at a -0.99% annualized rate. When compared to prior quarters, the new measurement is down over 3.6% from the 2.64% growth rate reported for the 4th quarter of 2013, and it is now more than 5% lower than the 4.19% reported for the 3rd quarter of 2013.
The previously reported quarterly growth in real annualized per-capita disposable income was revised downward to $95 (and that disposable income figure is now $227 per year lower than it was during the fourth quarter of 2012), while the household savings rate shrank again to 4.0% (down -0.9% from the 4.9% in the prior quarter and down -2.6% from the fourth quarter of 2012).
And lastly, for this report the BEA assumed annualized net aggregate inflation of 1.28%. During the first quarter (i.e., from January through March) the growth rate of the seasonally adjusted CPI-U index published by the Bureau of Labor Statistics (BLS) was over a half percent higher at a 1.80% (annualized) rate, and the price index reported by the Billion Prices Project
(Excerpt) Read more at marketoracle.co.uk ...
Isnt it interesting that of all the available inflation indicators, the BEA always seems to choose the one that makes GDP look most favorable? What a fascinating coincidence."
Nothing that can’t be fixed with a pen and a phone.
I saw a three letter broadcast with this obligatory, muffled news. It was explained away by the trumpeting of the ONLY 314,000 people that filed for unemployment insurance this WEEK! The best number in years, even back before Obama!.
All that pesky GDP news ain’t so bad because CONSUMER SPENDING IS UP! Yayyyyyy! That’s a good sign and this negative GDP thing is a passing fluke, onwards and upwards.
Our consumers are spending us out of this recession that really isn’t ‘is’. Trouble is that all this ‘consumer spending’ is on credit, because they don’t have a job, or haven’t gotten a raise since Obama’s immaculation, or just have given up and running up the cards before they declare bankruptcy....
Lying frigging abetting media sycophants. Anything for Obama.
"The big news Thursday was that America's economy shrank during the first quarter of 2014, its worst performance in three years -- but reporting that news apparently didn't sit well with several major media outlets."
Be sure to thank all your liberal friends who vote Democrat!
I think they should be lined up, secured to posts in front of an adobe wall and offered a cigarette.
This despite B0’s best efforts to destroy domestic energy production.
Fracking is propping up his numbers the way the tech bubble propped up Clinton’s.
We are now Venezuela. Hide the toilet paper,
This is all planned and on purpose.
According to Alinsky’s handbook, the best method of leading a country into communism or socialism is to destroy the economy first.
I read today that 1 out of 6 American males between age of 25 - 59 do not have a job.