GDP tomorrow will be positive. I wonder how much will be from Federal Spending.

Discussion in 'Economy' started by Neubarth, Jan 28, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    We saw the Third Quarter 2.2 percent positive GDP. The Federal Government spend thirty percent more money in 2009 and GDP only went up 2.2 percent. The reality is that GDP was down over ten percent if it were not for the increased Federal spending.

    So what will it be this quarter?

    Federal Spending will be up way more than 30 percent, so I expect that the actual economy will be down about 7 percent but will be reported as up five percent or more.

    So the real question is, Is GDP a valid indicator of the economy if it can be bought with one time Federal Spending increases?
     
    Last edited: Jan 28, 2010
  2. pinqy
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    pinqy Gold Member

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    GDP was up 5.7% and the government spending contribution to that was -0.02%%. Source: BEA
     
  3. Truthmatters
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    Truthmatters BANNED

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    Yeap thanks for recognizing the stimulus did work guys
     
  4. The Rabbi
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    The Rabbi Diamond Member

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    Bullshit.
    What we're seeing is businesses rebuilding inventories after slashing them to unprecedented levels. That can't last forever without demand down the road.
    And with increasing unemployment that won't happen.
    I've talked to several people who sell industrial goods and the story is the same: businesses are holding off hiring and expanding, waiting to see what will happen to laws.
    This won't get better before Nov when teh Dums get spanked real hard.
     
  5. mascale
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    mascale VIP Member

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    So in fact it is widely noted that the private sector did inventory accumulation, subsequent depletion, with both consumer and government acquisition tepid.

    "Real federal government consumption expenditures and gross investment increased 0.1 percent in the fourth quarter, compared with an increase of 8.0 percent in the third. National defense decreased 3.5 percent, in contrast to an increase of 8.4 percent. Nondefense increased 8.1 percent, compared with an increase of 7.0 percent. Real state and local government consumption expenditures and gross investment decreased 0.3 percent, compared with a decrease of 0.6 percent."

    So again the question, "Where is the Stimulus" being spent: Is likely in the future. And further Notice that state and local government: Likely gobbled up what can easily be labled: "The Preservative Part Of the Stimulus," aka the "Bail-out" of state and local governments. The famous, Conservative, "Axis of Evil-doers" can easily be said now to include police and teachers(?)! Any Conservative would clearly regard these saved jobs, "waste and fraud in the Obama Administration Stimulus." These are government, socialist, employees. They are even taking money from the Chinese government socialists.

    On "Fantacize Along With FoxTV," the also easily, now infamous, Senator-Elect from Masschusetts: Will be leading the Conservative, Tea-Party, mantra of "Let's Cut the Taxes of the people who don't pay any! It's that simple A Way To Get people with no money spending! JFK even did that(?)!"

    But enough of authentic objectivity in reporting: With the studio execs raking it all in, on the Coast, out in Hollywood!

    Mainly, The increase of Consumer Confidence, reported during January, and the increase of income tax refunds--including from the refundable tax credit of the GOP Conservative Opposed, Obama Administration, Democratic Party, Stimulus Program: Will likely be found in Q1 and Q2, with effects of that felt in the second half.

    There will be customers, actually purchasing: The Inventory!

    Central Planning does that, with economies!

    "Crow, James Crow: Shaken, Not Stirred!"
    (Hmmm. Great Half-Wit Father in Washington make monkeys out of. . . .Fittest(?) of Darwinian Evolution! People go now back to basics. . . .and Writer's Guild. . . .Medicine Lodge!"
     
    Last edited: Jan 29, 2010

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