U.S. GDP Shrank 3.8% Last Quarter, Most Since 1982
Jan. 30 (Bloomberg) -- The U.S. economy shrank the most since 1982 in the fourth quarter of last year as consumer spending recorded the worst slide in the postwar era, a trajectory that’s likely to continue in coming months.
The 3.8 percent annual pace of contraction in the final three months of last year was less than forecast, with a buildup of unsold goods cushioning the blow. Without the jump in inventories, the contraction would have been 5.1 percent, the Commerce Department said today in Washington.
“It looks like the economy carried a lot of negative momentum into the first quarter,” former Fed Governor Laurence Meyer, said in an interview with Bloomberg Television.
The economy is likely to contract further after retailers and manufacturers from Starbucks Corp. to Boeing Co. this week announced plans to slash payrolls and cut production to get rid of unwanted goods. Today’s report will maintain the pressure on President Barack Obama to win quick congressional approval of a fiscal stimulus package in excess of $800 billion.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aimV_rut...
Three kinds of lies: white lies, black lies, and statistics
I am really skeptical. I believe the GDP is down, that's a given. But whose numbers are correct? When we hear about the rate of inflation, most sane people have stopped listening to the gov't figures altogether, because we can see what a fraud they are committing. It's obvious, too, that they have been manipulating the price of gold and silver.
What I couldn't figure out was how they could manipulate the market and keep it from collapsing, until I saw someone speak about the "Plunge Protection Team". They are the same group that RP referred to in his debate with McCain, the'"President's working group on financial markets". Apparently, they are capable of creating market activity on demand, and that's why we haven't seen a truly epic crash to date. But it is coming and it will wipe out all the artificial wealth, down to the last phony FRN.
You're correct to be skeptical
The GDP records every monetary transactions as positive. (For example, the costs of social decay and natural disasters are actually tallied up as economic advancement.)
One example is how hurricane Andrew was a disaster for Southern Florida, but the GDP recorded it as a boon to the economy of well over $15 billion.
This link ( http://dieoff.org/page11.htm ) talks about the fallacy of using GDP as an indicator:
1) fixing blunders and social decay from the past. 2) borrowing resources from the future, or 3) shifting functions from the community and household realm to that of the monetized economy.
More info here http://dieoff.org/page11.htm
Goverment Sachs get's their lobbyist
as Timmy Geithners chief of staff.
I'd love to see Ron Paul call out Goldman Sachs & the community go after these crooks.
NOBODY has robbed & benefited more than these pri&ks. They ARE the Treasury department & the FED.
http://foxforum.blogs.foxnews.com/2009/01/29/pinkerton_treas...
the truth is GDP contracted at a 5.1% pace
the decline would have been worse except that the government counts an unwanted buildup of goods on store shelves as growth. Excluding the inventory buildup, GDP contracted at a 5.1% pace.
http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
http://www.flickr.com/photos/57925480@N00/2660779139/sizes/l/
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"How can we justify to the unemployed and underemployed in the United States the incredible cost of maintaining a global empire?" - Dr. Ron Paul
DING
All that inventory will not count 1 st Q. Inventory is in the process of trying to shrink to meet the market, that is alot of GDP lost.
lol
*buildup of unsold goods cushioning the blow*
had to laugh at that...
http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
http://www.flickr.com/photos/57925480@N00/2660779139/sizes/l/
Website:
http://www.libertypoet.com/
Twitter:
http://twitter.com/LibertyPoet
"How can we justify to the unemployed and underemployed in the United States the incredible cost of maintaining a global empire?" - Dr. Ron Paul
The spin would be funny if it wasn't so sad
On Druge it says "less than estimated" like it is a good thing.
Click on the story and get the bloomberg article, and it says, "Most since 1982".
Thank you Dr. Paul for making me act on what I already knew was right.
*May the only ones to touch your junk, be the ones you want to touch your junk.*