Guest Post: Can We Please Stop Pretending the GDP Is "Growing"?

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Thu, 06/02/2011 - 10:25 | 1332167 postban
postban's picture

The only thing growing in this country is the size of Michelles ass

Thu, 06/02/2011 - 10:32 | 1332180 SheepDog-One
SheepDog-One's picture

Whole country has too much junk in the trunk! 

Thu, 06/02/2011 - 10:35 | 1332201 TheTmfreak
TheTmfreak's picture

I'd rather have junk in the trunk so when shit hits the fan you might be able to miss quite a few meals and still be ok.

Thu, 06/02/2011 - 11:47 | 1332504 nonclaim
nonclaim's picture

Unless your body is able to burn fat efficiently the extra weight you have to carry around while "gathering" will actually speed up your demise. The thing is most people can't burn fat efficiently; it is good to keep at least a routine of one long walk once a week.

Thu, 06/02/2011 - 10:41 | 1332230 2DollarBill
2DollarBill's picture

the trunk don't pack itself.

Thu, 06/02/2011 - 10:37 | 1332186 Conrad Murray
Conrad Murray's picture

That gorilla faced bitch is one disgusting waste of oxygen. But that Barack...he's so eloquent, a great speechist. I mean, it totally changed what I thought about black people. I'm so glad I voted for him. And no, it wasn't to prove I'm not racist: I have lots of black friends! I don't care how much money he has to spend to pull this ditch out of the car! We need our unions and you mega wealthy yacht owners need to pay your fair share. Spread that wealth around like jam on lamb.

I never had any hope there would be real change until I saw what that poor Kenyan/Indonesian/Muslim/Christian-American had done with himself. It was the first time in my life I was proud to be an American. My only regret is that I can't send my kids to a school where they sing songs of praise to our dear leader all day long. I sure hope little Jenny finds a stud of a fella like Barry O. He's really a game changer on the race-mixing front going forward.

http://www.youtube.com/watch?v=_LA4xEDw7mY

Thu, 06/02/2011 - 10:40 | 1332224 theopco
theopco's picture

Hey- fuck off, okay?

Thu, 06/02/2011 - 10:51 | 1332250 DaveyJones
DaveyJones's picture

you do realize you're complimenting him by giving him the cause. He's just another crooked pawn.  

Thu, 06/02/2011 - 11:25 | 1332313 ElvisDog
ElvisDog's picture

Anyone who says or writes "I'm not racist: I have lots of black friends!" has proven that he is in fact racist. But if your post was a parody, then, well, never mind.

Thu, 06/02/2011 - 11:57 | 1332538 malek
malek's picture

Anybody bringing up such crap as reasoning to claim the moral highground for himself is just otally ucked.

Edit: oh ford, I am one myself as I didn't write himself/herself

Thu, 06/02/2011 - 11:04 | 1332316 Montgomery Burns
Montgomery Burns's picture

Maybe zerohedge needs some kind of a basic intelligence test before people are allowed to post or junk comments. Hope this helps.

sar·casm

[sahr-kaz-uhm] Show IPA –noun
1.
harsh or bitter derision or irony. 2.
a sharply ironical taunt; sneering or cutting remark: a review full of sarcasms.

Thu, 06/02/2011 - 11:27 | 1332396 theopco
theopco's picture

too bad you couldn't see the sarcasm in what I wrote.

 

j/k

Thu, 06/02/2011 - 13:48 | 1333083 Montgomery Burns
Montgomery Burns's picture

You're brilliant. OUCH!  (I didn't junk you though)

Thu, 06/02/2011 - 11:18 | 1332352 JR
JR's picture

"I never had any hope there would be real change until I saw what that poor Kenyan/Indonesian/Muslim/Christian-American had done with himself."

Now that's change you can believe in! I mean, that's change you can see!

Thanks for the tongue-in-cheek, Conrad. Priceless!

Thu, 06/02/2011 - 10:58 | 1332278 SoNH80
SoNH80's picture

Long grape soda and fried chicken

Thu, 06/02/2011 - 11:05 | 1332305 ElvisDog
ElvisDog's picture

Oh come on. Include links to before and after pictures so we can compare.

Thu, 06/02/2011 - 11:11 | 1332328 JR
JR's picture

By the looks of it, it appears that when Michelle proclaimed that in order to get the things she wants “someone is going to have to give up a piece of their pie (that’s you) so that someone else can have more,” she took most of the pie.

Reminds me of Charlie Rangel’s philosophy in that old joke when he got a call from his banker telling him his account was overdrawn. Yelled Charlie: “Whaddya mean, I’m overdrawn?  I still have my checkbook!”

Nothing like lining up for “your share” of a pie someone else baked.

Thu, 06/02/2011 - 18:03 | 1334116 Sam Clemons
Sam Clemons's picture

And the awareness that the Federal Reserve "system" is a cartel and primarily exists for the benefit of government "solvency" and the already wealthy.

I'm glad someone else finally put this type of article out there.  GDP "growth" is a really silly measure of how good life is getting for people when it is measured in currency units that are worth less in real terms on a daily basis. 

How about real wealth growth per capita?  Or purchasing power growth per capita?

 

Thu, 06/02/2011 - 10:26 | 1332170 the not so migh...
the not so mighty maximiza's picture

good article

Thu, 06/02/2011 - 10:51 | 1332265 trav7777
trav7777's picture

When facing unacceptable reality, all you have left is pretend, isn't it?

We can go down a list of "truths" people in this country cling to, just think about what's politically correct versus what is real.  Things which people emotionally react to, etc.  Just go down and list them; it's huge.

Thu, 06/02/2011 - 10:31 | 1332173 Problem Is
Problem Is's picture

I like John Williams' analysis at Shadow Stats...

2% GDP growth = 0% Real Growth
Massively understating inflation by manipulating the CPI overstates GDP on the PCE side by about 2%...

Thu, 06/02/2011 - 10:40 | 1332212 breezer1
breezer1's picture

lets not forget the importance of manipulating the price of PMs to hide inflation.

Thu, 06/02/2011 - 11:42 | 1332492 AbandonShip
AbandonShip's picture

I just automatically subtract 3% from the headline GDP number.  The first 3% is the NBER "gimme" which doesn't count. Like my first 90 strokes on an 18-hole course.

Thu, 06/02/2011 - 10:31 | 1332174 SheepDog-One
SheepDog-One's picture

Just a freakin nightmare someone let me off this stupid cheap carnival ride!!

Thu, 06/02/2011 - 16:01 | 1333721 DaveyJones
DaveyJones's picture

and the best part of the analogy is that the operators are low class criminals.

Thu, 06/02/2011 - 10:31 | 1332175 Hedgetard55
Hedgetard55's picture

Hilarious. Hitler rants about Anthony Weiner.

 

http://www.youtube.com/watch?v=aQVwsS0fKiE

Thu, 06/02/2011 - 10:35 | 1332188 Problem Is
Problem Is's picture

His name is WEINER!
Wasn't it only a matter of time before he posted a picture of his Johnson (albeit, a Photoshopped enlargement) on the internet???

Thu, 06/02/2011 - 10:47 | 1332240 baby_BLYTHE
baby_BLYTHE's picture

I saw the pic. He ain't packin' much.

Thu, 06/02/2011 - 11:09 | 1332333 Clowns on Acid
Clowns on Acid's picture

b_Blythe - Apparently Weiner sent the pic to the coed and asked, "Do you know what this is?"

Coed replied, "It looks like a penis, only smaller".

I think she will have a good chance to sue in Small Claims court.

Thu, 06/02/2011 - 11:24 | 1332371 baby_BLYTHE
baby_BLYTHE's picture

wonder what his wife thinks about this:

http://www.thelmagazine.com/images/blogimages/2009/07/13/1247497642-huma...

Traveling the world with Hilary must give her a 'smaller' perspective on things

Thu, 06/02/2011 - 11:42 | 1332480 FreeNewEnergy
FreeNewEnergy's picture

"Don't worry, Barney Frank has begun tweeting him."

ROTFLMAO

Thu, 06/02/2011 - 10:33 | 1332178 Chuck Bone
Thu, 06/02/2011 - 10:30 | 1332183 hugovanderbubble
hugovanderbubble's picture

THanks Charles H.S.

 

Im expecting a sp between 1220-1250

Thu, 06/02/2011 - 10:34 | 1332197 hugovanderbubble
hugovanderbubble's picture

Tyler, look at last 2 days decorrelation between Uprising EURUSD and bearish Silver... (VERY STRANGE)

Thu, 06/02/2011 - 10:56 | 1332285 espirit
espirit's picture

I noticed that also, but am unable to pattern any FX pairs - and that is strange.

It's like removing any traces of intention.

Thu, 06/02/2011 - 10:55 | 1332185 TruthInSunshine
TruthInSunshine's picture

We could pretend, but there's a super election cycle coming up in 2012.

Of course the real GDP of the United States is shrinking, given that a larger share of it is comprised of services which derive their value, in large part, from wages paid, and these wages will be under continuing pressure in both real and even nominal terms.

And then there's the big fact that more of the U.S. GDP is a function of deficit spending by government (adding to our heaping national debt year after year) than at any time since the core years of WWII, which when viewed in proper context, is a wasteful and counterproductive exercise that only subtracts from future GDP, as it will only create higher costs and a higher drag on growth in the private, real, organic economy.

One private business owner's miserable experience in a banana republic is some governmental employee's, or especially, government contractor's banana split sundae.

Thu, 06/02/2011 - 10:35 | 1332200 A Man without Q...
A Man without Qualities's picture

It's astonishing how much bullshit backs up the GDP data - hedonics, substitutions, price deflators.  My gut tells me that the productive economy has been in contraction since at least 1999, hidden by public and private debt growth and dodgy adjustments..

 

The importance of the price deflater used by the BEA cannot be overstated. In calculating the "real" GDP the BEA continued to use an overall 1.9% annualized inflation rate, which is substantially lower than the inflation rates being reported by any of the BEA's sister agencies. The mathematical implications of the deflater are simple: a lower deflater creates a higher ‘real’ GDP reading. If April's CPI-U (as reported by the Bureau of Labor Statistics) of 3.2% year-over-year inflation is used as the deflater, the reported 1.84% annualized growth rate shrinks to a 0.56% annualized rate, and the ‘real final sales of domestic products’ is actually contracting at a 0.63% rate. If instead of the year-over-year CPI-U we were to use the annualized CPI-U from just the first quarter (5.7%), the ‘real’ GDP would be shrinking at a 1.82% annualized rate, and the ‘real final sales of domestic products’ would be contracting at a recession-like 3.01%.


http://www.consumerindexes.com/

Thu, 06/02/2011 - 10:35 | 1332202 topcallingtroll
topcallingtroll's picture

So far the script is following classic austrian economic theory that krugman derides so much.

It is requiring increasing levels of debt to generate each marginal dollar of gdp growth.

If growth is not self sustaining by now then a double dip is in our future.

Bennie has no intention of qe3 by the way. The market has yet to price it in.

Thu, 06/02/2011 - 11:08 | 1332213 topcallingtroll
topcallingtroll's picture

The market has yet to price in that there is no qe3 contemplated for now. To clarify.

Thu, 06/02/2011 - 10:51 | 1332264 A Man without Q...
A Man without Qualities's picture

"Bennie has no intention of qe3 by the way."

I wonder if this is part of the reason for the dramatic and sudden deterioration in the data releases.  Has the Treasury has been trying to push the Fed to keep monetizing their borrowings, but Bennie's been resisting? Once you get addicted to something like printing money, politicians find it very hard to break the habit, which is one of the most powerful arguments for an independent central bank..

Thu, 06/02/2011 - 11:03 | 1332309 SheepDog-One
SheepDog-One's picture

Yes good point.

Thu, 06/02/2011 - 11:22 | 1332367 WonderDawg
WonderDawg's picture

Bennie doesn't make the decisions, he's merely the public face for the cartel. Never forget, he works for the cartel, not the other way around. The cartel OWNS the Fed, remember?

Thu, 06/02/2011 - 11:20 | 1332364 downwiththebanks
downwiththebanks's picture

The Austrian's prescription - liquidate everything! - is an equally hopeless failure.  

So it's fine to rip on Bennie, Turbotax Timmy, and Krugman.  But to suggest genocidal deflation as a serious alternative rather than a deranged one is more than problematic.

Fri, 06/03/2011 - 11:36 | 1336187 wngoju
wngoju's picture

What the...  @down - what are you doing here?  This blog is only for Tea's, etc.  

Thu, 06/02/2011 - 12:04 | 1332587 OldTrooper
OldTrooper's picture

Bennie has no intention of qe3 by the way.

So, you're a mind reader now?  I doubt very much that you actually know what goes on inside Ben's bankster-programed head.  Wait, you're not sleeping with him, are you?

Ok, you could easily be right (hell, the odds are 50/50 aren't they).  However, when the withdrawls from removal of easy money start we will find out for certain.  I'd wager that we see some kind of fed action to prop up things no latter than Labor Day - regardless of Ben's current intentions or desires.

Thu, 06/02/2011 - 12:47 | 1332763 TruthInSunshine
TruthInSunshine's picture

You're correct in that it's a guessing game.

Some feel confident that the trend and the economic math and political calculations make it more certain than not.

The real questions that should be asked by more people, and given a deeper analysis, is whether it will matter, and if so, in what ways? What about the law of diminishing and even negative returns? What about the size, scope and type of collateral damage resulting from such distortion and suppression of free market forces?

These are the better questions.

Thu, 06/02/2011 - 14:02 | 1333175 OldTrooper
OldTrooper's picture

No doubt, Sunshine.  Those are better questions.

Even asking questions like that requires a state of mind that I doubt exists in the circles that will make the decisions.  But, for those of us on the outside, how we answer will suggest some obvious courses of action.

Thu, 06/02/2011 - 10:36 | 1332204 GFORCE
GFORCE's picture

World GDP isn't growing. UK, Australia, Japan, Europe.

Thu, 06/02/2011 - 11:22 | 1332385 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

World oil production is also not growing.  Guess which way the causation goes.

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