My pointing out that the Fed has raised their rate more in the two years of Trump's presidency than in the eight years of Obama's presidency isn't attacking anyone....it's simply pointing out a HUGE difference between the two administrations! The Fed raises rates to "cool down" economies that it's worried might be growing too fast. Obama's handling of the economy caused the Fed to keep interest rates near zero for the longest time in Fed history! Trump's handling of the economy has caused the Fed to raise interest rates. It makes it much harder for Trump to maintain the growth he's already provided.
The U.S. economy grew 2.9% in 2018
- Thread starter McRocket
- Start date
My pointing out that the Fed has raised their rate more in the two years of Trump's presidency than in the eight years of Obama's presidency isn't attacking anyone....it's simply pointing out a HUGE difference between the two administrations! The Fed raises rates to "cool down" economies that it's worried might be growing too fast. Obama's handling of the economy caused the Fed to keep interest rates near zero for the longest time in Fed history! Trump's handling of the economy has caused the Fed to raise interest rates. It makes it much harder for Trump to maintain the growth he's already provided.
And even though those rate hikes RAISE the cost to service the debt, Trump's still keeping debt growth flat even while he increases the real GDP growth rate by 50%.
Something tells me that's too complex for Eddie or the Caddo Kid to grasp, Zorro! It's like trying to explain quantum physics to a four year old. Sooner or later they get frustrated and start throwing a tantrum.
Grasp this Zorro
Growth in the first quarter smashed expectations, fueled in part by strong inventory building. According to the government, $32 billion of goods were added to inventories this quarter, or $128 billion annualized.
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This stockpiling of goods boosted first-quarter GDP growth by about 70 basis points and helped propel growth to a 3.2% annual rate, well above forecasts.
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The problem is that it is not at all obvious where these inventories came from. Goods have to come from somewhere, either produced by domestic firms or imported from abroad.
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The mystery is that both production and imports fell in the first three months of the year, according to government data.
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“You can’t stockpile what you do not import or do not produce,” said Robert Brusca, chief economist at FAO Economics.
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The Fed reported last week that industrial output slipped at a 0.3% annual rate in the first quarter.
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And the government’s GDP report estimates that imports fell 3.7% in the first three months of the year.
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The one other explanation — that consumption fell sharply enough to leave businesses with unexpected unsold goods — also doesn’t fit the evidence, Brusca said.
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Consumption did not fall faster than industrial production or imports to generate any surplus, he said. To be sure, spending on consumer durable goods fell 5.3%, the biggest drop in 10 years. Business spending on equipment was also weak.
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“Any way you slice it, this GDP report...is an apparent mess,” he said.
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Another possibility is that the government tinkered with the report to try to solve an ongoing problem of “residual seasonality” that tended to push down first-quarter growth estimates, Brusca said.
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The White House had a few different explanations for the discrepancy -> Top White House economic adviser Larry Kudlow said the inventory build was mainly in autos, and wouldn’t be a problem because consumers would be opening their wallets.
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Another White House economist, Kevin Hassett, seemed to suggest that the extra production wasn’t picked up in the Fed’s report on industrial production.
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The inventory mystery has key implications for the outlook. If the inventory build is real and unwanted, it might slow production.
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On the other hand, if it is somehow revised away, growth in the second quarter might not be as weak as some expect. All this when Fed officials have stressed they are going to be more dependent on the data in setting interest rates.
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Wow, I smell a rat...!!!
He did thump on the Fed, and once again Trump was right. We are enjoying strong growth without any real inflation issues.
Like trump called everything phony I see a rat, a scam in this 3.2 % bullshitHe did thump on the Fed, and once again Trump was right. We are enjoying strong growth without any real inflation issues.
And that improved the trade deficit, which improved GDP.
Probably not, you didn't include a link so I can't tell who your source is, but these guys have been consistently missing to the low side during the Trump Expansion.
old ,there are 3 kinds of people,,those who are good at math ,and those who aren't ,,,keep it simple
Andylusion
Platinum Member
Democrats didn't think it was bad under Obama.
So I guess you convicted yourself in that statement, huh?
I just asked a simple question. Why so defensive?
Keeping it simple is kind of your mantra...isn't it, Eddie! If you get confused...just ask for help!
Thanks old Good to know you have my LOL back
Andylusion
Platinum Member
I responded with a simple fact. Why so defensive?
I personally am open to the idea that Trump's trade war is having a negative effect. I would be perfectly happy if he dumped the trade war crap, and stuck with tax cuts and deregulation.
However, the method of your attack, is hypocritical. Saying that the economy is terrible under Trump, because 3% growth is what we had under Obama and you said nothing about it... just means you are a hypocrite.
Our problem with Obama and his 3% growth, was because he claimed that by spending multiple trillions of dollars, that he would fix the economy, and keep unemployment under 6%. Instead spending tons of money, did what it has always done in the past, and made the economy worse. Instead of 6%, or 8%, it was almost 11%.
That was our issue. If he had spent no money, and said we were just going to plow through this tough time..... I personally would have accepted that. But instead he claimed he was going to fix everything, and then spent trillions of dollars paying back political supporters like the Unions, and giving 'green energy' money to Solyndra, and others.... and then we're all supposed to act shocked the economy didn't bounce back, but got worse than we ever expected?
Now here you are, complaining about 3% growth, when Obama's 3% growth was perfectly fine?
Nah, you are just a hypocritical snot, just like all the other evil left-wing democraps. You are all the same. All garbage.
ANDY you need a little fact checking
The numbers are nearly all in now. What they show about what really happened during the eight years that Barack Obama was president is sometimes different from what politicians claimed.
- The economy gained a net 11.6 million jobs. The unemployment rate dropped to below the historical norm.
- Average weekly earnings for all workers were up 4.0 percent after inflation. The gain was 3.7 percent for just production and nonsupervisory employees.
- After-tax corporate profits also set records, as did stock prices. The S&P 500 index rose 166 percent.
- The number of people lacking health insurance dropped by 15 million. Premiums rose, but more slowly than before.
- The federal debt owed to the public rose 128 percent. Deficits were rising as Obama departed.
- Home prices rose 20 percent. But the home ownership rate hit the lowest point in half a century.
- Illegal immigration declined: The Border Patrol caught 35 percent fewer people trying to get into the U.S. from Mexico.
- Wind and solar power increased 369 percent. Coal production declined 38 percent. Carbon emissions from burning fossil fuel dropped 11 percent.
- Production of handguns rose 192 percent, to a record level.
- The murder rate dropped to the lowest on record in 2014, then rose and finished at the same rate as when Obama took office.
Andylusion
Platinum Member
The economy gained a net 11.6 million jobs. The unemployment rate dropped to below the historical norm.
No it did not. The economy only gained a net 11.6 million jobs, because the economy crashed in 2008, thanks to Obama's pro-sub-prime mortgage policies he'd been pushing before he got into office.
Do tell, how many companies that you know of, where Obama showed up, and told them to hire people? Answer: None.
Point being, the economy would recover if Obama had done nothing. If the entire Federal Government had done nothing, the economy would have recovered on it's own.
Average weekly earnings for all workers were up 4.0 percent after inflation. The gain was 3.7 percent for just production and nonsupervisory employees.
Yeah, after the crash, things recover. Again, nothing to do with Obama. No indication at all that his policies did anything to help. Tons that they made things worse. Slowest recovery in American history.
After-tax corporate profits also set records, as did stock prices. The S&P 500 index rose 166 percent.
Yeah, after the crash, things recover. If Obama had never been elected, the same would have happened. This is normal, without government intervention. Go look at the stock price history. After a massive crash, there is usually a massive rebound.
Dow Jones sees biggest day ever as stock market rebounds
The number of people lacking health insurance dropped by 15 million. Premiums rose, but more slowly than before.
This is not true.
It is only true that premiums rose slower from 2009 to 2014, because certain expensive and costly aspects of Obama-Care only came into effect after 2014. However, even then, you have to ignore the fact that insurance companies were drastically increasing deductibles during that time. Yeah, the premium itself rose only so much, but the deductible is a hidden expense. Basically you are paying higher premiums for less coverage.
So, no, your BS crap about premiums rose slower, is just flat wrong.
The federal debt owed to the public rose 128 percent. Deficits were rising as Obama departed.
Yes. We know. Spent a ton of money, accomplished very little.
Home prices rose 20 percent. But the home ownership rate hit the lowest point in half a century.
Yes. We know. After a housing price crash, they tend to go up. No kidding.
Illegal immigration declined: The Border Patrol caught 35 percent fewer people trying to get into the U.S. from Mexico.
Really? After an economic crash, fewer people try to get here? No way. Who'da thunk it?
Interestingly, it was Obama who started mass separation of children from parents. Yet people seem to want to blame Trump for that....
Wind and solar power increased 369 percent. Coal production declined 38 percent. Carbon emissions from burning fossil fuel dropped 11 percent.
The coal is being shipped to other countries like China, which have drastically increased coal burning emissions. The shift from coal to natural gas, was going on long before Obama showed up. But to say emissions have gone down, is only true locally.
Even then, I don't agree with the CO2 non-sense anyway. That's not a positive. It's just waste of time and money.
Regardless of if you think reducing CO2 is good or not, wind and solar power are crap. The high deficits and national debt we have now, is due in part to these money sink holes of green-energy. We should stop subsidizing them. If they are half as good as you claim they are, then they should be profitable without government taxing the poor to pay the rich. But we both know that they are garbage, and the moment you stop subsidizing them, the entire wind and solar industry will implode.
Production of handguns rose 192 percent, to a record level.
Ok? So? Maybe if Obama didn't incite violence everywhere, we wouldn't have to defend ourselves as much.
The murder rate dropped to the lowest on record in 2014, then rose and finished at the same rate as when Obama took office.
Yes, he reversed a declining trend. Exactly my point. Violence rate had been dropping for decades. Obama reversed that.
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