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Shrinkage: US Economy Declined By -0.1% In Q4

ZeroHedge: A stunner out of the BEA which just reported a Q4 GDP of -0.1% that was leaps and bounds below the 1.1% estimate, and a plunge from Q3's 3.1%.

The factors: Private Inventories, Exports and Government Expenditures all of which contracted, by -1.27%, -0.81%, and -1.33%. The silver lining was in Personal Consumption Expenditures which added 1.52% to the negative print, most of it however driven by a surge in spending ahead of the fiscal cliff.

Ironically, this was the biggest government-driven detraction from growth since Q1 2011, when GDP led to a -1.49% cut in the GDP, same in Q4 when government spending on defense fell the most since 1972.

The solution is simple: print moar drones. Enter Mali. And since everything is now AMZN-ing, we can't wait for the spin that the GDP's margins were actually better than expected, leading to a 200 point surge in the DJIA.


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I hate shrinkage.

I hate shrinkage.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Lol I was thinking the same thing

Could totally see bernake saying "we need to discuss shrinkage today" and very one snickering at him

Um, how do you decline by

Um, how do you decline by negative percent? Shouldn't it read, Economy declined by 0.1%?

Southern Agrarian

Lol don't confuse them. It's

Lol don't confuse them. It's not their fault they passed school without learning math.

Read Mish's column today to understand this

Here (hopefully is a link to his take:


Explains a lot.

How can it explain anything?

Federal Reserve Act of 1913

An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency,

US Dollar Priced in Gold.

A Dollar is defined as 371 4/16 grains of Silver. That's about 56x10^20 Silver atoms.

I use an elastic tape measure on all my building projects. Would you hire me?

When the butcher puts is thumb on the scale, how can I explain that my purchase doesn't measure up?

Until the fraud is admitted, silly analyses will prevail.

The Fiat bubble popped in 2000, Priced in Gold:
GDP has lost 79% since 2001
DJI has lost 92% since 1999

Wages are at 1939 levels.
Household Net Worth at 1957 levels.
House prices are below 1890 levels.


Free includes debt-free!

Paying folk to produce

Paying folk to produce nothing, in industry that ain't, gets a lot of nothing produced.

The "Nothing account" ... Statistical Discrepancy account... (Error of the estimate) of Gross Domestic Product (GDP) is oft larger than increases touted in that gross measure (measured w/ an elastic tape measure).

Cannot believe it. Statistically grotesque.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

SteveMT's picture

"Unexpectedly' and "suddenly"

They had no idea that this contraction would happen. The stock market hardly reacted, but metals did, and I see that oil just hit $98/barrel.

Obama says we are recovering.

You can trust that fella.. He has an honest face.


Patriot Cell #345,168
I don't respond to emails or pm's.
Those who make peaceful revolution impossible will make violent revolution, inevitable.

Analysis with an elastic measuring stick reveals little.

The Fiat bubble popped in 2000, Priced in Gold:
GDP has lost 79% since 2001
DJI has lost 92% since 1999

Wages are at 1939 levels.
Household Net Worth at 1957 levels.
House prices are below 1890 levels.

Household Net Worth:
House Prices:

All the commodities paint a similar picture.

Our Currency(money) Supply roughly equals our National Debt. The Federal Reserve has created on average 9% phoney fiat money per year for 99 years. Doubling the money supply every 8 year or so. One has to give the Boyz credit for the greatest and longest swindle in history.

Four times they blew up a fiat bubble that popped: 1921, 1929, 1971 and 2000. Each time they gathered profits on the way up and assets on the way down. They are protected by Congressional regulations which created the perfect BORG creature for their patrons.

Or if you are a Fan of the original Star Trek, The Doomsday Machine.

Either way the message is the same. "All your base belong to us."

Free includes debt-free!

TwelveOhOne's picture

All Your Base song!


Thanks for the trip down memory lane. I especially liked the cigarette pack "SURGEON GENERAL'S WARNING: All your base are belong to us." I used to hang out on Slashdot and lived through this meme. :)

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

mmm zig mmm zig you know what

mmm zig mmm zig you know what you do zig...

Southern Agrarian

dacharlie's picture

Read the comments under the article

It was hilarious fun to read the responses to the comment made by MillionDollarBonus guy. The Libertarians on that site went to town on him. Priceless..