Friday, June 27, 2014

Nearly 3% contraction in U.S. economy...another HISTORIC milestone for Obama

Well, it was the weather or something, don't you know? I don't think those in the know are buy that...
ZeroHedge: Remember when in January 2014, Q1 GDP was expected to rise 2.6%? Well, here comes the final Q1 GDP revision and it's a doozy: at -2.9%, far below the -1.8% expected and well below the -1.0% second revision, it is an absolute disaster, and is the worst print since Q1 2009.

And while a bad GDP print was largely expected, the driver wasn't: personal consumption expenditures somehow crashed from 3.1% to just 1.0%, far below the 2.4% expected, meaning that all hope of a consumer recovery is dead. Finally, as a reminder, US GDP has never fallen more than 1.5% except during or just before an NBER-defined recession since quarterly GDP records began in 1947. Good luck department of truth propaganda machine, because even assuming 3% growth every other quarter in 2014 means 2014 GDP will be 1.5% at best!
Rush commented yesterday that perhaps the shrinking American economy should be the only news!
"Now, this just doesn’t jibe. In the first place, she’s talking about the 3% contraction of the economy in the first quarter. It didn’t happen in 2009. It’s the first time it’s happened since they started keeping such data. This is historic. There hasn’t ever been a 3% contraction. The truth of the matter is, ladies and gentlemen, we never got out of the recession. They might be able to have a formulaic way of measuring recession versus growth and depression, the number of quarters in a row where the economy doesn’t grow.

The fact of the matter is, we’re not producing the kind of jobs that lead people into the job market with vigor. They’re not the kind of jobs that lead to careers. Entrepreneurism is taking a hit. There really isn’t any significant, quality job creation going on. And it’s getting even worse because of the influx of illegals crossing the border now. There hasn’t been any serious reaction from serious economists, so this is a one-off. “The economy, I mean, you look at recent numbers, the economy is actually doing quite well right now.” The economy hasn’t been doing well in six years."

Remember too that the Obama administration changed how we measure GDP growth out of thin air! I think ZeroHedge hit that 'department of truth propaganda machine' SPOT ON!'

So, I guess we could revise another assumption: Maybe Obamacare didn't save the U.S. economy after all...

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