Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The Deteriorating Economic Outlook
Paulcraigroberts.com ^ | 7/8/2014 | Craig Roberts

Posted on 07/08/2014 11:56:14 AM PDT by GilGil

The first quarter contraction, especially our corrected number, implies a second quarter negative real GDP. In other words, the years of Quantitative Easing (money printing) by the Federal Reserve has not resulted in economic recovery from the 2008 downturn and has not prevented further contraction.

(Excerpt) Read more at paulcraigroberts.org ...


TOPICS: Business/Economy; Government
KEYWORDS: depression; employment; gdp; recession
I am told that the markets will correct 60-70% by the time Obama leaves and that unemployment will reach 30 million people. It seems the wheels are spinning in that direction. Nothing will stop this.
1 posted on 07/08/2014 11:56:14 AM PDT by GilGil
[ Post Reply | Private Reply | View Replies]

To: GilGil

I agree on all points.


2 posted on 07/08/2014 11:59:44 AM PDT by laplata (Liberals don't get it .... their minds are diseased.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GilGil

When PCR limits himself to commenting on the US economic scene, he deserves to be listened to.


3 posted on 07/08/2014 12:00:16 PM PDT by skeeter
[ Post Reply | Private Reply | To 1 | View Replies]

To: skeeter

When PCR limits himself to commenting on the US economic scene, he deserves to be listened to.


PCR’s last sentence confirms what you say:

“If Washington is this unaware of its budget constraints and its financial predicament, it cannot be long before Americans experience economic catastrophe”.


4 posted on 07/08/2014 12:04:58 PM PDT by laplata (Liberals don't get it .... their minds are diseased.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: laplata
IMO Obama and this administration not only know exactly what kind of catastrophe their policies will bring down on us; it has been their goal all along.

They hate us.

5 posted on 07/08/2014 12:08:56 PM PDT by skeeter
[ Post Reply | Private Reply | To 4 | View Replies]

To: GilGil

All right on plan of the radical left. It has been this way for over six years. We warned and the fools did not listen, and now we face this.


6 posted on 07/08/2014 12:11:27 PM PDT by EagleUSA
[ Post Reply | Private Reply | To 1 | View Replies]

To: GilGil

“Quantitive Easing” was never intended to “stimulate” the economy. It was necessary to paper over the giant trillion dollar annual deficits racked up by the 0bama regime. Deficits so large there wasn’t enough capital in the world’s markets to absorb it by traditional means.


7 posted on 07/08/2014 12:11:42 PM PDT by henkster (Do I really need a sarc tag?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: henkster

“..“Quantitive Easing” was never intended to “stimulate” the economy.”

:::::::::

Yes, and all it is doing is holding Wall Street together. And the world knows it. With the exception of the American low-information voter...


8 posted on 07/08/2014 12:16:24 PM PDT by EagleUSA
[ Post Reply | Private Reply | To 7 | View Replies]

To: skeeter

That’s been the opinion of many from the start. He’s going to become more and more obstinate and destructive.


9 posted on 07/08/2014 12:54:57 PM PDT by laplata (Liberals don't get it .... their minds are diseased.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: GilGil

You don’t think it’s going to happen sooner?


10 posted on 07/08/2014 3:18:00 PM PDT by GOPJ (Remember the oath is to "support and defend the Constitution" not the President.FRrfreedom4u)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GilGil

Well with that knowledge, we can both become the next John Paulson!


11 posted on 07/08/2014 3:19:36 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
[ Post Reply | Private Reply | To 1 | View Replies]

To: henkster

Well it worked.
The 40% fake money routed to the Entitlement Army purchased a re-election for Caliph Baraq.


12 posted on 07/08/2014 3:20:36 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
[ Post Reply | Private Reply | To 7 | View Replies]

To: GilGil

Things on the ground are just terrible. I just got back from grocery shopping at Walmart . Couldn’t believe the price of all meats. 8 bucks a pound for ground chuck!


13 posted on 07/08/2014 3:22:32 PM PDT by uncitizen (Buckle up! We're on the Facism Fast Track!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: uncitizen

Substitute it for cat food, ergo no inflation.


14 posted on 07/08/2014 6:04:58 PM PDT by sunrise_sunset
[ Post Reply | Private Reply | To 13 | View Replies]

To: sunrise_sunset

Or corn on the cob which is cheap this year. Cheaper than I remember it being for years.


15 posted on 07/08/2014 6:33:01 PM PDT by uncitizen (Buckle up! We're on the Facism Fast Track!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: uncitizen

Well I started eating vegan to beat prostate cancer about 2 years ago. Got much better and my food bill went down 60%. Blessing in disguise in more ways than one.


16 posted on 07/09/2014 7:13:19 AM PDT by GilGil
[ Post Reply | Private Reply | To 15 | View Replies]

To: EagleUSA; henkster
Yes, and all it is doing is holding Wall Street together. And the world knows it.

QE was also to prop up hard assets, i.e. real estate. Combine that with loan modification programs like HAMP, and you have government controlling the housing market. It worked so well, the Feds took over student loans.

We all know how that will end.

If Mark Twain were blogging today, he'd say there are 3 kinds of lies: lies, damn lies, and HAMP modifications.

17 posted on 07/09/2014 7:27:04 AM PDT by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Mississippi!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Night Hides Not; EagleUSA
Propping up the hard asset (real estate) market was one side-effect of QE 1-∞. I believe the main intended result was that the Fed knew the creation of all this “money” out of thin air would drive up inflationary pressures. And when you look at the size of the QE issuances, and the size of the debt that’s been papered over, you would think there would be a significant amount of inflation. I’m not saying there hasn’t been price inflation; there certainly has been and the government continues to lie about how much has taken place. I’m saying there would have been a lot more, but for the fact that the Fed decided to try to “hide” the money in the hard asset markets, and use those markets as a reservoir instead of releasing it into circulation. Of course some of it is leaking out and fueling the inflation we have, but without storing it there inflation would have been much worse.

I think the Fed may actually be hoping for another “correction” to burst the hard asset bubble they’ve inflated. In that way, they can “destroy” all the money they “created,” and it never goes into circulation. Of course, this is just another “rob Peter to pay Paul” fiscal strategy, and is obviously fraught with economic peril. But on the other hand, given the senseless fiscal strategy of the current regime, I don’t know what other options the Fed has.

18 posted on 07/09/2014 8:22:21 AM PDT by henkster (Do I really need a sarc tag?)
[ Post Reply | Private Reply | To 17 | View Replies]

To: henkster

Yes, and I certainly agree. But as you note, it is “leaking” and we do have significant increases over the past two years in the cost of living, goods, and services.

We still have a “fake” economy. This administration is doing everything it can to hurt/squash our economy and so far, they continue to get away with it. The electorate carries a huge responsibility for Obama’s second term and the still untold damage to our nation. Until the private sector again becomes the major source of economic growth and wealth creation (and the priority of a pro-American administration) will we again have a healthy, self-supporting economy. Obvious stuff, but worth repeating.


19 posted on 07/09/2014 8:39:03 AM PDT by EagleUSA (()
[ Post Reply | Private Reply | To 18 | View Replies]

To: EagleUSA
The electorate carries a huge responsibility for Obama’s second term and the still untold damage to our nation.

The electorate got the regime it wanted. Otherwise, the revolution would have already begun.

20 posted on 07/09/2014 9:02:30 AM PDT by henkster (Do I really need a sarc tag?)
[ Post Reply | Private Reply | To 19 | View Replies]

To: GilGil

It went down 2.9 plus another 3 from the new method of calculating last year....so it went to NEGATIVE 6 PERCENT GDP......IF THIS NEXT QUARTER IS NOT AT LEAST PLUS 3 PERCENT....WE ARE IN A RECESSION ACCORDING TO THE DEFINITION....2 CONSECUTIVE NEGATIVE QUARTERS.


21 posted on 07/21/2014 11:26:00 PM PDT by TomasUSMC (FIGHT LIKE WW2, WIN LIKE WW2. FIGHT LIKE NAM, FINISH LIKE NAM.)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson