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US 2011 GDP 1.7%, Cuba’s 2010 GDP 2.1%

From an always compliant Reuters:

U.S. growth quickens in Q4, but speed-bumps ahead

By Lucia Mutikani
January 27, 2012

WASHINGTON (Reuters) – The U.S. economy grew at its fastest pace in 1-1/2 years in the fourth quarter of 2011, but a strong rebuilding of stocks by businesses and a slower pace of spending on capital goods hinted at softer growth early this year.

U.S. gross domestic product expanded at a 2.8 percent annual rate, the Commerce Department said on Friday, a sharp acceleration from the 1.8 percent clip of the prior three months and the quickest pace since the second quarter of 2010.


It was, however, a touch below economists’ expectations in a Reuters poll for a 3 percent rate, and nearly 2 percentage points was due to the build-up in business inventories

The experts were overly optimistic? How can that be?

And note that this minor fourth quarter bump is probably artificial

U.S. stock index futures turned negative after the data, while government debt prices pared losses. The euro held gains against the dollar

What does that tell you, when the Euro gains on the dollar?

Growth in the fourth quarter got a temporary boost from the rebuilding of business inventories, which was the fastest since the third quarter of 2010, after they declined in the third-quarter for the first time since late 2009…

The robust stock accumulation suggests the recovery will lose a step in early 2012.

Also pointing to slower growth, business spending on capital goods was the slowest since 2009, a sign the debt crisis in Europe was starting to take its toll.

Expectations of soft growth led the Fed on Wednesday to say it expected to keep interest rates at rock bottom levels at least through late 2014.

Fed Chairman Ben Bernanke said the central bank, which forecast growth this year in a 2.2 percent to 2.7 percent range, was mulling further asset purchases to speed up the recovery.

Translation: QE3.

The Fed warned the economy still faced big risks, a suggestion the euro zone debt crisis could still hit hard.

The economy grew 1.7 percent in 2011 after expanding 3 percent the prior year

Notice how Reuters buried this detail in the 14th paragraph of their (unexcerpted) article. That is what is known as advocacy journalism. Which, of course, is the only kind of journalism there is any more.

The real news here is that last year’s GDP is half the rate from last year. When we were told by all the experts that it would be far better.

For the record, according to the US State Department, Cuba’s GPD was in 2010 was 2.1%. Which was considered to be so low it has caused Cuba’s dictators to begin to undertake radical economic reforms, which effectively amount to undoing their socialist system.

Meanwhile, back here at home, Mr. Obama is taking us in exactly the opposite direction.

This article was posted by Steve on Friday, January 27th, 2012. Comments are currently closed.

8 Responses to “US 2011 GDP 1.7%, Cuba’s 2010 GDP 2.1%”

  1. BannedbytheTaliban says:

    What do you suppose the over/under is for the 2.8% Q4 GDP growth to be revised down? I’m going to throw out an official prediction that when the real numbers come in growth will be around 1.9% which the MSM will round up to 2%.

    • River0 says:

      The Ruling Classes of all nations are meeting in Davos, Switzerland, right now, and they’re refining their game plan.

      Massive co-mingling of funds from the most hard-working and productive taxpayers continues apace, financing the great casino game they run. It’s Monte Carlo and Las Vegas on steroids. They are the House. Nobody beats the House. They’re discussing all the possible means for manipulating the world economy to keep themselves, their families, and their cronies in power.

      They’ve publicly stated that capitalism is being re-evaluated for its viability; that is, what’s lest of free-market capitalism. Translation: Get ready for a Chinese-style world politburo and a one-world currency.

  2. proreason says:

    Well, to be honest, the 1.7% annual growth is funded by gubamint borrowing.

    Unemployment compensation, welfare, medicare, SS and medicare payments, and other gubamint spending all count in GDP. What fantasist imagines that those grew at only 1.7% annually in 2011? Of course they didn’t. They grew at least by 9% since that is the “baseline” invented by our overseers to trick us when they publish the economic stats designed to persuade us to vote for them.

    So growth in the private sector HAS to be considerably less than 1.7%. And private sector growth is the only growth that really counts, since all gubamit growth is dependent on what happens in the private sector.

    Oh wait, that’s not right. Our masters have discovered they can just run the printing presses and / or borrow money without limit.

    For a while.

    • tranquil.night says:

      Oh what tangled webs they weave.

      And the fall-out of their utopian failure always fall on the innocent and responsible to fix. It can take generations if the Utopians aren’t stopped quickly enough. Funny how whether or not that’s “fair” never dawns on the social justice league.

      A lot of people in politics forget too quickly why there’s so much outrage or, worse, they have contempt for it.

    • Petronius says:

      Nerobama’s ten-step winning formula :

      1. Manipulate the economic statistics.
      2. Don’t talk about stimulus or Obama-Care.
      3. Talk a lot about Wall Street fat cats, bankers, the Cayman Islands, fairness, fair share, and Buffett’s secretary.
      4. Blame Bush for the mess he inherited.
      5. Talk about investment in education, green energy, green jobs, and other cool stuff.
      6. Blame Republican obstructionists; also blame his “enemies” and racists.
      7. Funnel taxpayer money to labor unions and corporate cronies.
      8. Receive re-election campaign donations from labor unions and corporate cronies.
      9. Tabulate votes (documented and undocumented).
      10. Win second term.

      Stage Two : Clamp down real hard on America. (Boys, you ain’t seen nuttin’ yet.)

    • proreason says:

      Good recap, but you missed one of the most important points: demonize his opponent

  3. canary says:

    Update on massive immigration of Cubans into U.S.

    Panama is swamped with Cubans as they make the way over Mexican border into the U.S.

    Would this mean Obama lied in state of union speech when he said less immigrants are crossing the border.

    And why aren’t Republican Presidential candidates pointing out Obama’s lies in his campaign state of union speech.

    That’s what people need to hear attacks on the sitting moron Obama.
    Time to quit their slogans of change, rebuild America, make America great, believe in America; same old rhetoric.

    Under the Cuban Adjustment Act of 1966, virtually all Cuban nationals who land upon U.S. soil are legally entitled to remain in the country and to seek permanent resident status (i.e., a “Green Card”) upon fulfilling 366 days of continuous physical presence in the United States. On the basis of U.S. Homeland Security data on new legal permanent residents by country of origin each fiscal year rather than the more typically consulted U.S. Coast Guard statistics on intercepted Cuban migrants, Table II reveals that emigration from the island into the U.S. has reached levels not seen since the peak years of the late 1960s and early 1970s.

    In fact, more Cubans are now entering the United States – legally and otherwise – than at any other time since the Freedom Flights of the mid-1960s through the early 1970s. Contrary to conventional opinion about the historic magnitude of the Balsero exodus (~40,000) and the Mariel Boatlift (~125,000), since FY 2000 upwards of 191,000 Cubans have started new lives in the U.S., eclipsing the combined migrations of 1980 and 1994. At the current average annual inflow (since FY 2005) of approximately 38,000 new migrants per year, the U.S. will have received 267,000 new Cuban immigrants by the end of FY 2009. Should the projections hold, the present era will surpass both the 1960s and 1970s (see Table II) in terms of total Cuban migration to the U.S. in any decade since the triumph of the revolution in 1959.

    If we include total post-Soviet immigration from the island (FY 1990 through projected FY 2009), more than 426,000 Cubans will have resettled in the United States, a figure that rivals the 458,000-strong generation of historic (pre-1980) exiles.

    Seemingly unnoticed by the media and policymakers alike, the U.S. is witnessing a deluge of migration from Cuba. Moreover, the trend appears to be escalating rather than declining. Cubans now account for 3.6 percent (45,614 in FY 2006) of all new permanent residents, up from 2.1 percent in FY 2004 (20,488), and now behind only Mexico, China, the Philippines, and India.[1] Considering that Cubans have every incentive to acquire permanent resident status as soon as possible, the Homeland Security data essentially captures the size of annual Cuban migration flows into the U.S. Moreover, the data in Tables I and II are lagging indicators since Homeland Security statistics refer to the number of Green Cards issued in a given year. Assuming a one to two-year processing time for permanent resident applications, the FY 2006 data (FY 2007 data are preliminary figures based on known arrivals, [2]) more likely represent those Cubans who physically arrived in the U.S. sometime between 2004 and 2005.

    Consequently, it is probable that the slow pace of post-Special Period socio-economic recovery and a lack of hope, especially among younger Cubans, for substantive political and economic change under Raul Castro will be reflected in even higher statistics in the coming years. It is also evident that Cuban authorities are doing little to curb the doubling of emigration since FY 2004. Tacitly if not overtly, the Castro regime once again appears to be turning to mass migration as its policy of choice to both deflate mounting dissatisfaction at home and arguably set the stage for more favorable negotiating terms in its relations with Washington.

    Table I
    A New Exodus: Cuban Migrants, 2004-2007*
    FY 2004 FY 2005 FY 2006 FY 2007** Total
    20,488 36,261 45,614 31,312 133,675
    Source: *Kelley Jefferys, “U.S. Legal Permanent Residents: 2006,” Annual Flow Report (U.S. Department of Homeland Security, March 2007). The data represent legal permanent resident status granted to Cuban citizens and their dependents per U.S. government fiscal year (October 1-September 30), not calendar year. **For FY 2007, the figure represents a conservative estimate based only on publicly disclosed data, including authorized immigration visas granted within Cuba by the U.S. Interests Section in Havana, Cubans taken into custody upon entering U.S. territory, and Cubans requesting asylum at the U.S.-Mexico border. However, the actual number of Cubans who entered the U.S. in 2006-2007 may be significantly larger. Cf. Reuters, “Illegal flow of Cubans to U.S. on the rise,” October 1, 2007.

    Table II
    Cuban Migration to the United States, 1950-2006*
    1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 2000-2006 Total
    73,221 202,030 256,497 132,552 159,037 160,133 983,470
    Source: U.S. Department of Homeland Security, Yearbook of Immigration Statistics, 2006. *Note: The data represent Cuban citizens and their dependents who obtained legal permanent resident status (i.e., were issued a “Green Card”) per the U.S. government’s fiscal calendar (FY). Annual figures have been grouped into decades.

    1. See Kelley Jefferys, “U.S. Legal Permanent Residents: 2006,” Annual Flow Report (U.S. Department of Homeland Security, March 2007), p. 3.
    2. Anthony Boadle, “Illegal flow of Cubans to U.S. on the rise,” Reuters, Havana, October 1 , 2007.

    • canary says:

      oops. I didn’t mean to post that piece off a Cuban study I found on a Cuban news site .

      Just the first 6 lines for an update Cuban’s pouring into U.S. through Mexico.
      Forget Florida coast, now other states will have Obama’s Union Thugs paying for commercials.

      Now if Mitt and Newt were smart they’d get their own Spanish speaking commercials right and promise every Mexican and Cuban free citizenship, free homes, and food for life. They can hire me to make the commercials and I’ll take the blame that I really had China make the commercials so I can’t get sued.

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