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AP: GDP Shows ‘Surprising Drop’ In 4th Quarter

From a gobsmacked Associated Press:

GDP Shows Surprise Drop for U.S. in Fourth Quarter

January 30, 2013

The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.

Er, there isn’t much more the Federal Reserve can do, since it is already shoveling $85 billion dollars a month into the financial markets. (Hence the artificial rise in the stock market.)

Anyway, for comparison, China’s current GDP is 7.9%. And Cuba’s was 2.1% in the first half of 2012, which are the latest figures we have.

The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

Gee, whatever happened in the fall that would have made the economy go south like that? Could it have been the elections in November?

Apparently not, since Obama’s name is never mentioned in this entire article. And his policies are never blamed for any of our economic problems. Things just happen.

The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter.

And given that the inflation rate is at least 2% (and probably higher) we are already in a real recession, for all intents and purposes. We certainly would be in an official recession if there was a Republican in the White House.

That’s a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.

The surprise contraction could raise fears about the economy’s ability to handle tax increases that took effect in January and looming spending cuts…

What nonsense. Tax increases are great for the economy.

Already, a key measure of consumer confidence plummeted this month after Americans noticed the reduction in their paychecks, the Conference Board reported Tuesday…

Apparently, this is the only thing that ever reaches the low information voter.

This article was posted by Steve Gilbert on Wednesday, January 30th, 2013. Comments are currently closed.

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