[Obama's economy] US GDP shrinks in Q4 2012, despite $165 B Fed stimulus

Obama has been saying it's all Bush's fault; you agree that's utter stupidity?

 

sure, or replace, in this case, utter stupidity with ineffectual governance.

 

we agree!

/drink

 

if only congress could agree so easily...

acid, booze, and ass
needles, guns, and grass
lots of laughs lots of laughs/

 

Sam, do you think you could post a link to the actual chart you posted?

And thanks again for your kind words.

 

hell's the hippest way to go.

 

There is something I can agree with.

 

right click much brah?

 

Any of what? We've had it all - except that the Fed has kept interest rates down for now. And no, I don't think we will have hyperinflation since we have world's reserve currency - just regular inflation.

Huge government spending won't solve our problems now - it will just create more debt. According to the government's own numbers, the stimulus created 1 job for every $300,000 dollars spent.

Our debt is a problem we have now and will be a problem in the future. We already pay approximately $300 Billion dollars just on the interest.

I never predicted hyperinflation. You must be confusing me with people like Peter Schiff whose business is to exaggerate inflation to help sell more of his gold. I do say we are experiencing inflation higher than the CPI is telling us. Anyone who believes that inflation is just 1-2% is fooling themselves...

 

Why say you this, and why/how am I fooling myself?

 

No I'm not confusing you at all. You exhibit the same baseline morality play on debt that is depressingly all to common: that debt is malum in se. Its continually amazing to me how so many proclaimed market devotees want to toss the market out the windows because debt is evil evil evil! Lack of growth and promotion of general welfare is my main concern and is the correct answer here.

 

A ten dollar Tip Jar bet that this "decline" will be revised in 2 or 3 months, and it will be clear that we actually had a growing economy during that quarter. A taker, anyone? Texxx?

 

Your prescriptions don't work - all they do is add more debt. And who is trying to "toss the market out the windows"? I guess you suscribe to the crazy Keynesian idea that the whole economy will crater if government cuts spending just a little (or doesn't go up as fast you want it).

And btw, I think Republicans are crazy for not willing to raise some taxes to balance the budget. It could be done without raising taxes on the middle class or cutting SS/Medicare. Simply raise the cap on FICA taxes to $250,000 and have significant cuts to Defense spending and other areas of government so that the budget balances over time...

 

About 60% of China's reserve holdings are dollars - equal to about 21% of US M2 money supply. The more asset reflation there is, the more dollars the Chinese can invest because they have large bond and securities holdings. This will help China overinvest further, causing more harmful domestic inflation for the Chinese; whereas deflation is the concern in the US.

The high domestic saving rate of China (and other exporting nations) lead to a low borrowing rate in the US; the same was true in the Euro countries, like Greece. The international banking rules clearly favor the developed countries over the developing countries.

To me, it is clear that "overcapacity" develops from the need to acquire foreign currency; but it seems that there must be a balance in the flow of currency. Balance can be achieved through trade or deflation in one country and inflation in another.

 

LOL - and this just underscores how big the cup of crazy you're drinking is.

You're in a thread that exists because of last week's news that the lack of government spending over a given period was entirely responsible for the net decline in GDP growth,, and making it your big coming out party for arguing that such a thing could never, ever, ever, ever, ever happen....because MAGIC AMERICA DEBT BAD BAD !!11!.

Go back to page 1, do not pass go, have a nice life with your paulista alternate reality.

In the real world, actions have consequence. It's not Keynsianism, it's arithmetic.

 

If you think the decine in the GDP was entirely due to a lack of government spending, then you are in your own little bubble - have fun playing in it....

I live in the real world where I don't try to solve the problems associated with a housing bubble by attempting to blow up another one. Or to solve our debt problem by going deeper into debt. Or believe we need a made up alien invasion to get the economy back on track. It is time for Keynesians to stop living in a fantasy land...

It is you and your ilk that have been successful in convincing gullible people that war is good for the economy. The result has been an overbloated defense department whose defenders say "we will lose jobs if we cut defense!" Those actions have had consequences - it has promoted the death and destruction by the thousands...

 

Net decline in gross national product? I think you mean negative rate of change in real GDP. In nominal terms, there was no negative rate of change but the rate of change did decline. Furthermore, real gross private domestic investment in 2012 4Q was less than 2012 3Q.

What do you think will be responsible for the positive revision?

 

Like all the revisions, it will be because there are more accurate numbers available.

 

I don't think the net decline was because of this, I know this to be true.

The net decline was 0.1. Now in order to salvage your position, please go ahead and prove that 0.1 > 1.3.

As I said before you live in the world where debt is EVIL and must be punished - no matter if it actually is or not - to you, a world with less debt is a better world simply because there is no debt - you have made that overwhelmingly clear again and again.