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Shocker: 1st Quarter GDP Revised Down

From an unfazed Reuters:

Economic growth trimmed on business and consumer spending

June 25, 2010

WASHINGTON (Reuters) – Economic growth was slower than previously reported in the first quarter as estimates of business and consumer spending were cut.

In its final estimate on the first quarter on Friday, the Commerce Department said gross domestic product expanded at a 2.7 percent annual rate instead of the 3 percent pace it reported last month.

Although the growth pace was below market expectations for a 3 percent rate, it still marked three straight quarters of expansion as the economy digs out of its most brutal downturn since the 1930s…

U.S. stock index futures cut gains on the report, while government debt prices rose. The U.S. dollar extended declines against the yen

Who are these stock analysts who are so easily and regularly O-bamboozled?

Growth in the January-March period was held back by business spending, which only rose at a 2.2 percent rate instead of 3.1 percent as reported last month…

So the non-government spending was even smaller than reported.

Growth in consumer spending was also revised down to a 3 percent rate

Once again, during the dark days of the Bush administration these GDP estimates seems to be regularly revised up. But, just like now, the revisions were seldom front page news.

And, speaking of those evil times, back under President Bush even a 3.3% GDP growth was widely reported by our media masters as a sure sign of a recession. But a measly 2.7% growth somehow means ‘happy days are here again.’

Meanwhile, with all of the massive tax increases slated to kick in come January, we only have the six months between then and now to grow the economy and create new jobs. And there aren’t any signs that anything like that is going to happen.

Instead, we will probably get a new recession, beginning in January (or sooner), that not even the Democrats or our one party media will be able to blame on President Bush.

This article was posted by Steve on Friday, June 25th, 2010. Comments are currently closed.

11 Responses to “Shocker: 1st Quarter GDP Revised Down”

  1. GetBackJack says:

    Article forgets to use the Obama term “unexpectedly”.

    I think he owns a patent on it, or something.

  2. proreason says:

    Let’s not lose track of the fact that the way they measure GDP includes government spending.

    And since the entire “stimulus” is simply borrowing from the future to payoff political cronies today, the real economic growth is zero or less.

    What they are doing is the equivalent of you withdrawing from your retirement savings, spending it today on drugs, and telling your family that you got a raise.

    It’s not even as benign as a white lie…..it’s a malignant lie designed to obscure the criminality of what they are doing. It’s criminal because much of it isn’t even spent on the people. It’s used as payola to keep their thugs in line.

  3. RightWinger says:

    The big problem here, as mentioned, is these tax cuts expiring at the end of the year. That will produce a momentary blip of growth due to all the Capital gains due for with everybody selling off stocks/bonds etc for the lower tax rate. Of course Barry and his MSM propogandists will hail this growth as proof the economy is turning around (for the 157th time this year). Then 2011 is the toilet for us all unless something can be pulled out of the hat.

  4. Petronius says:

    Steve : “Instead, we will probably get a new recession, beginning in January (or sooner) . . . .”

    Currently we are living through an unprecedented period of massive government spending and a Fed monetary policy of reinflation via low interest rates. These two are demand shocks.

    These demand shocks are coupled with widespread unemployment, and rising oil prices (a price shock). Increased oil prices were practically guaranteed by the regime’s moratorium on deepwater drilling. Oil price shocks have always been followed by recessions and unemployment. They lead to stagflation. They cause long-term interest rates to rise and GDP to fall.

    This combination of massive deficit spending, low Fed interest rates, and oil price shocks is bound to generate great inflationary pressure over time. How much time is anyone’s guess. But a shift by the Fed to disinflation (higher interest rates) will run the risk of deepening the recession. The bigger the inflation, the greater will be the amount of Fed disinflation that is required, and the bigger will be the resulting recession.

    It is going to take a long time for the USA to work its way out of this mess.

    As I write this, gold is setting a new all-time high.

  5. BannedbytheTaliban says:

    “not even the Democrats or our one party media will be able to blame on President Bush.”

    Maybe not Bush, but they will still pin it on the Republicans. Headlines will read: ” Stymied by Republicans, Democrats are at a loss as they struggle to help pump up the economy ” oh wait….

    • Right of the People says:

      That’s what happens when their only concerned with pumping up their own bank accounts.

      Our Dear Leader doesn’t play violin by the way, does he?

  6. fallingpianos says:

    …we will probably get a new recession…that not even the Democrats or our one party media will be able to blame on President Bush.

    Not that they won’t try.

  7. Mithrandir says:

    I just saw an old episode of Family Guy, and Lois was drooling over Bill Clinton because he was in charge of a successful economy.

    ~~~~~~~~WAIT A MINUTE?~~~~~~~~~~~~~

    ~So, a responsible Republican Congress gets Bill Clinton (a tax and spend communist) credit?

    ~But a horrific DEMOCRAT tax and spend Congress, a nose-dive economy, –Bush get’s blamed?

    Seems like the Democrats win no matter what, and Republicans lose no matter what….

  8. jackal40 says:

    Unfortunately, this will spiral into a full blown depression. Once the tax cuts expiration is felt in the home pocket books of those still employed, coupled with rising inflation, exorbitant price increases because of higher fuel prices, a rise in interest rates, the effects of the health care legislation, and the devaluation of the United States dollar against ALL foreign currencies.

    The dems will have achieved their goal of reducing the United States of America to a second world country – if we’re lucky, we won’t descend to third-world status although I won’t place any money on that one.

    While it’s possible the 2010 elections may see enough liberals replaced by conservatives, I do not expect them to fix this mess. He!!, I don’t even expect them to successfully repeal Heath Care. None of our elected representatives seem to understand the mess we’re in and how much worse it will get. And this congress continues to pass multi-thousand page bills that they haven’t read, don’t understand, and can’t gauge the effect of.

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