[kabar]

From Tyler Durden:

Because as the next chart below shows, between the second and final revision of Q1 GDP something dramatic happened: instead of contributing $40 billion to real GDP in Q1, Obamacare magically ended up subtracting $6.4 billion from GDP. This, in turn, resulted in a collapse in Personal Consumption Expenditures as a percentage of GDP to just 0.7%, the lowest since 2009!

Don't worry thought: this is actually great news! Because the brilliant propaganda minds at the Dept of Commerce figured out something banks also realized with the stub "kitchen sink" quarter in November 2008. Namely, since Q1 is a total loss in GDP terms, let's just remove Obamacare spending as a contributor to Q1 GDP and just shove it in Q2.

Stated otherwise, some $40 billion in PCE that was supposed to boost Q1 GDP will now be added to Q2-Q4.

And now, we all await as the US department of truth says, with a straight face, that in Q2 the US GDP "grew" by over 5% (no really: you'll see).

[Wyatt's Torch]

:-)

“In response to today’s data, we have revised up our forecast of real GDP growth in Q2 2014 to 4.0% from 3.0%,” writes Barclays’ Dean Maki. “We have raised our forecast of real consumer spending to 3.5% from 3.0%, as we expect that some of the anticipated health care spending originally expected in Q1 2014 will now occur in Q2 2014. We have also modestly changed our assumptions for net exports and inventories to be a bit more favorable in Q2 2014 than previously expected.”