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Chart Of The Quarter: $312 Billion In Debt "Adds" Negative $5 Billion In GDP

Tyler Durden's picture


What was it about the law of diminishing Fed stimulus returns again? But don't worry: "the market is up." Because if $165 billion in Q4 stimulus could not even generate a positive GDP return, at least it sent the Russell 2000 soaring.

Source: BEA, Treasury Direct


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Wed, 01/30/2013 - 10:01 | 3198412 Tijuana Donkey Show
Tijuana Donkey Show's picture

More drones!

Wed, 01/30/2013 - 10:01 | 3198422 Stackers
Stackers's picture

I'm not worried. Silver is up.

Wed, 01/30/2013 - 10:02 | 3198430 dwdollar
dwdollar's picture

Diminishing returns leads to hyperinflation bitchez.

Wed, 01/30/2013 - 10:05 | 3198448 Acet
Acet's picture

Bullish! This just means MOOOAAAR debt is needed.

Mr Scotty, I need 110% speed on the printers!!!


Wed, 01/30/2013 - 10:14 | 3198477 Stackers
Stackers's picture

I'm give'n her all she's got cap'n

Wed, 01/30/2013 - 10:24 | 3198523 Pool Shark
Pool Shark's picture



"Ludicrous Speed!!!"



Wed, 01/30/2013 - 10:32 | 3198558 Shocker
Shocker's picture

Thanks ZH, that simple graph / picture explains everything.

All this stimulus, QE, Bailouts and still can't get this recovery going.

Current Business Layoff/Closing List


Wed, 01/30/2013 - 10:41 | 3198616 trav777
trav777's picture

It's just a vindication for the real world folks.  We've been saying for years that MONEY and DEBT don't MATTER in a real sense.  They are SYMPTOMS, not CAUSES.

What matters to whether you can drive more people more miles is that you have more energy supply.  The debt is just a claim ticket.


Look at the US's history...1970, peak oil, 1970s...collapse, inflation, malaise.  1980s we get Prudhoe, suddenly it is morning in America.  Same debt arc.  If we begin producing again, we'll have the good times rolling.  Everything orbits around our ability to increase aggregate energy rate of production, or to decrease the decline.  The debt just FOLLOWS that.

Bernank and the rest of them really ARE trying to print oil by offering credit at nearly free prices.  But, those in the real world understand that there is NO AMOUNT of debt that can make a negative EROI somehow profitable in any real sense.

Wed, 01/30/2013 - 10:48 | 3198657 Spastica Rex
Spastica Rex's picture

The Real World is for pussies.

Wed, 01/30/2013 - 12:36 | 3199129 ShankyS
ShankyS's picture

Subtraction thru addition or is it addition thru subtraction - shit - they can't even get that right. 

Wed, 01/30/2013 - 15:27 | 3199492 SafelyGraze
SafelyGraze's picture

Acet says "Bullish! This just means MOOOAAAR debt is needed."


but you left out the prefatory phrase the solution is as simple as it is obvious.

Wed, 01/30/2013 - 10:58 | 3198705 economics9698
economics9698's picture

Dr. Krugman, Dr. Krugman, we need your help here.  /sarc

Wed, 01/30/2013 - 10:40 | 3198605 TrumpXVI
TrumpXVI's picture

Captain, the warp motors are gonna' BLOW!

Wed, 01/30/2013 - 10:22 | 3198514 aint no fortuna...
aint no fortunate son's picture

but but what about Sandy? I thought natural disasters INCREASE GDP! whaaaaaa!

Wed, 01/30/2013 - 10:33 | 3198563 wisefool
wisefool's picture

Krugman was on Bloomberg monday. They put mittens on top of kit gloves to make sure he was comfortable. The hosts were careful to mention his credentials and titles without placating him too much. He only had to debate one other person, who was very, very civil.

Even with all that, he only stopped squirming and used his big boy voice for about 10 seconds in the whole two hours. "You know the greatest recovery in economics was WWII. Incredibly destructive spending" smiling from ear to ear.

I have respect for those who sacrified in that war (and all wars). And I am even old enough to start forgetting the evil machinations and false flags behind it. But it would be fantastic if we had scholars incharge of fiscal policy who can reference things that have happened after the 1940s.

Wed, 01/30/2013 - 10:58 | 3198676 Turin Turambar
Turin Turambar's picture

Since WWII was such an economic panacea according to Krugman, then why doesn't he simply advocate:

1.  US, UK, France, Spain, Germany, Japan,  et. al focus on rapidly expanding their navies with unprecedented building programs, kinda like during a war.

2.  After building these enormous fleets, the countries can then pilot them out to some agreed upon location in the Pacific Ocean, off-load all the sailors, and then sink all the ships!

3.  It'll be lots of fun.  Maybe it could be made a PPV event for some extra money, and SHAZAM! All the good stuff - stimulus, economic boom, good times are here again!- with no loss of life!

We'll all be rich, I tell ya!  And for the truly greedy (aren't we all?)  Rinse, repeat!  QD(quantitative destruction) 4eva.  Utopia is so close!

I know.  I know.  It's not nearly as exciting as an alien invasion.

Wed, 01/30/2013 - 11:07 | 3198740 wisefool
wisefool's picture

That was basically mitt romney's plan for a 200 aircraft carrier navy. That way both him and Bush Jr. could get one named after themselves, just like papa smurf!

Problem is, people actually payed taxes for that stuff. Romney don't pay taxes. He gives to charities where he is a bishop.

When the pawn hits the battle, he thinks like a king.

Wed, 01/30/2013 - 15:44 | 3199854 Totentänzerlied
Totentänzerlied's picture

"with no loss of life!"

Well then I guess we'll still have structural high unemployment and awful demographics.

Nothing fixes employment-to-population like killing large numbers of people!

Alien invasion, anyone?

Wed, 01/30/2013 - 10:36 | 3198580 midtowng
midtowng's picture

Even economists expect the economy to be slower in the Q1. That makes two quarters in a row of contraction (i.e. a recession).

Wed, 01/30/2013 - 10:38 | 3198595 smartstrike
smartstrike's picture

No it does not!

Wed, 01/30/2013 - 10:15 | 3198485 malikai
malikai's picture

PM's been looking pretty good since Monday.

Wed, 01/30/2013 - 10:02 | 3198424 MillionDollarBonus_
MillionDollarBonus_'s picture

This is just short term noise. The stock market has shrugged off this insignificant news and will soon be making its way to new all time highs. Professional fund managers recognize that despite this minor set-back, the long term fundamentals for the US economy are overwhelmingly positive. Here are just a few of the endless positive indicators for our economy:

  1. A strong housing recovery
  2. A rising stock market
  3. A plunging VIX
  4. Record low interest rates
  5. Record low inflation
  6. Record number of college-educated Americans

When will masochistic doomer libertarians on this site recognize that they are simply wrong about economic collapse and the impending apocalypse? When will goldbugs, silverbugs and bitcoinbugs realize that their dreams of becoming kings of the universe will never materialize?

Wed, 01/30/2013 - 10:03 | 3198432 EscapeKey
EscapeKey's picture

And think, a net increase in debt means there's MORE CASH ON THE SIDELINES!

Who cares about tomorrow anyway.

Wed, 01/30/2013 - 10:36 | 3198579 Dr. Richard Head
Dr. Richard Head's picture

To me, it is not shocking that the defenders of easy money policies (i.e. the Media talking heads, politicians, corporate welfare babies, et. al.) would shrug off this particular set of facts and still defend the idea that adding debt is good for GDP growth.  No matter how you slice it, the ability for any country to print their way ouf of this mess is showing itself to be a game ender. 

Wed, 01/30/2013 - 10:04 | 3198436 Xibalba
Xibalba's picture

The money faileth -  Gen 47:15


Famine is coming.  And you are a troll.

Wed, 01/30/2013 - 10:14 | 3198484 Hippocratic Oaf
Hippocratic Oaf's picture

He's no troll, he's MDB

Embrace his insanity

Wed, 01/30/2013 - 10:24 | 3198524 ultraticum
ultraticum's picture

Must be at least 9 other trolls to +1 the Mega Douche Bore.

Wed, 01/30/2013 - 10:27 | 3198533 CoolBeans
CoolBeans's picture

MBD is the King O' Sarc here on ZH.


Wed, 01/30/2013 - 10:34 | 3198565 Orly
Orly's picture

Not sarcasm.  Parody.

There is a big difference.


Wed, 01/30/2013 - 10:52 | 3198675 Spastica Rex
Spastica Rex's picture

Not parody. Attention whoring.

There is a big difference.


Wed, 01/30/2013 - 11:44 | 3198923 NoDebt
NoDebt's picture

Not attention whoring.  Whatever the word is that means you don't agree with him, you're not sure he really means it anyway, but he's just entertaining enough you still read his stuff and get a laugh.

There is a big difference.


Wed, 01/30/2013 - 11:47 | 3198941 Pure Evil
Pure Evil's picture

He stopped being funny or entertaining by his third post.

Wed, 01/30/2013 - 11:53 | 3198967 Acet
Acet's picture

Well, humor and attention whoring in general are really in essence just ways to outshine the competition and get the attention of the members of the opposite gender of the species.

That said, proper parody can also be used to make people think. Just a way to show redutio ad absurdum without the elitistic baggage that's often associated with intellectual pursuits in some circles.

Wed, 01/30/2013 - 12:06 | 3199012 Spastica Rex
Spastica Rex's picture

Incessant repetition is boring, not thought provoking. Comedy is an art, and when it's entirely predictable, it just isn't very funny.

I realize, however, that it's a blessing to be counted among the easily entertained.

Wed, 01/30/2013 - 12:27 | 3199100 Overfed
Overfed's picture

Irony, actually.

Wed, 01/30/2013 - 10:05 | 3198443 aka Gil
aka Gil's picture

Even if it's sarcasm, it's so predictably boring. Cut and paste away, MDeltaBravo.

Wed, 01/30/2013 - 10:07 | 3198458 Desert Irish
Desert Irish's picture

Large room....small door - get familier with the phrase.

Wed, 01/30/2013 - 10:17 | 3198493 sampo
sampo's picture

And again, how much was this freshly printed dollar buying in GDP?

Wed, 01/30/2013 - 10:17 | 3198494 yrbmegr
yrbmegr's picture

How many times did you post this?

Wed, 01/30/2013 - 10:28 | 3198538 rogeliokh
rogeliokh's picture

What are you smoking, dude?

Wed, 01/30/2013 - 10:42 | 3198620 Shevva
Shevva's picture

Your sums miss how much debt is needed for +0.1% of GDP? imagine if these economists 8 balls told them that $1500 million million million a month would give them that would they do it?

Wed, 01/30/2013 - 10:45 | 3198638 The Miser
The Miser's picture

I miss Burger King-there I could have it my way with a paper kings hat. 

Wed, 01/30/2013 - 10:46 | 3198644 Village Smithy
Village Smithy's picture

Show me some positive indicators that are not government manipulated propaganda.

Wed, 01/30/2013 - 10:46 | 3198646 bullmarket
bullmarket's picture

It goes up until it doesn't. In the end it's fundamentals which are overseas at best. Keep buying - it will be a better short

Wed, 01/30/2013 - 11:05 | 3198737 Turin Turambar
Turin Turambar's picture

Thanks for the reminder!  After reconsidering the vast increase in production soon to be realized from more underappreciated printed paper (college degrees, NOT fiat money - though they are both worth about the same amount), I feel  much better.

My mouth is salivating at the thought of the next technological revolution to be birthed by the next wave of social workers, teachers, minority/women studies majors... blah, blah, blah

/sarcasm off

Wed, 01/30/2013 - 11:40 | 3198900 GCT
GCT's picture

Welcome back MDB we missed your acurate and succint analysis of the situation.  We always love to have a good laugh.  I will point out the markets have nothing to do with the economy anymore.

Wed, 01/30/2013 - 10:03 | 3198429 Clint Liquor
Clint Liquor's picture

It's called 'debt saturation'. It's an Austrian thing, you wouldn't understand.

Wed, 01/30/2013 - 10:55 | 3198690 Liquid Courage
Liquid Courage's picture

Austrian Asymptote ... Hail the Mighty S-curve all thou Mad Monetarists. Your noxious notions of negative valuation will be rejected by the very fabric of the universe.

It's like ... er ... negative Mass ... philosophically speaking ... no! ... really!

Looks good on the page, but can't be rendered in "the real world", so to speak.

Best not to poke at it, wouldn't you say? But ... Boyz will be Boyz.

Wed, 01/30/2013 - 10:24 | 3198520 prains
prains's picture



more drones

more homes

more phones

more political clones

more kleptooligarchianthievingfuckers

more rope


Wed, 01/30/2013 - 10:40 | 3198604 Super Marco
Super Marco's picture

Q4 negative GDP. Blame Sandy... Hook... Truthers.

Wed, 01/30/2013 - 10:01 | 3198419 Tsar Pointless
Tsar Pointless's picture

That's not "diminishing returns". That's "vanquishing returns".

Chairman Ben, get ready for next year's Nobel Prize in Economics!

Wed, 01/30/2013 - 10:04 | 3198441 TotalCarp
TotalCarp's picture

Some old quote about needing a bigger boat comes to mind...

Wed, 01/30/2013 - 10:15 | 3198481 SamAdams
SamAdams's picture

Not the size of the boat, it's the size of the holes in the boat.  Credit isn't happening as all money is given to banks to secure fraudulent CDS which in turn is dumped in stock market.  This will not create jobs until the big holes (CDS) are patched, and that is an economic collapse from now.  When the bow is in the air, it may be time to jump ship.

Wed, 01/30/2013 - 10:25 | 3198519 SunRise
SunRise's picture

I take it that means to somehow stay away from the stern?  Recommendations?

Wed, 01/30/2013 - 11:47 | 3198939 NoDebt
NoDebt's picture

"Some old quote about needing a bigger boat comes to mind... "  Yeah, that's Roy Scheider in Jaws.

I was thinking more along the lines of a quote from The Titanic.  "She is made of iron, sir.  I assure you, she can and will sink.  The pumps only buy you time, nothing more."

Wed, 01/30/2013 - 10:01 | 3198420 q99x2
q99x2's picture

Bernanke2 isn't priinting enough.

Wed, 01/30/2013 - 10:01 | 3198421 MikeBctech
MikeBctech's picture

I'm bullish for bullshit

Wed, 01/30/2013 - 10:16 | 3198489 SamAdams
SamAdams's picture

never short the shit...

Wed, 01/30/2013 - 10:28 | 3198537 astoriajoe
astoriajoe's picture

There is clearly overcapacity in that market, however margins seem to be holding strong, so until they break, I guess we stay long.

Wed, 01/30/2013 - 11:51 | 3198951 NoDebt
NoDebt's picture

I'm cuckoo for Cocoa Puffs, cuckoo for Cocoa Puffs!

Wed, 01/30/2013 - 10:02 | 3198426 fonzannoon
fonzannoon's picture

SSSSHHHH!!!!! They are going to talk about the blackberry soon.

Wed, 01/30/2013 - 10:27 | 3198532 otto skorzeny
otto skorzeny's picture

BB 10 looks like every other phone out there-unless it can give me a blow job I don't care

Wed, 01/30/2013 - 10:34 | 3198570 centerline
centerline's picture

what's a blackberry?

Wed, 01/30/2013 - 10:02 | 3198427 EscapeKey
EscapeKey's picture

In a few quarters, that'll look like a good quarter.

Wed, 01/30/2013 - 10:10 | 3198470 HD
HD's picture

Who authorized this statement? Retract and spin immediately.


Wed, 01/30/2013 - 10:04 | 3198433 gkumar
gkumar's picture

How would the graph look like if  you add the billions lost due to reduced govt spending?

Wed, 01/30/2013 - 10:03 | 3198434 Rainman
Rainman's picture

Everything was going good until { insert weather event here }

Wed, 01/30/2013 - 10:05 | 3198440 HD
HD's picture

The little engine that couldn't...


Wed, 01/30/2013 - 10:05 | 3198442 Kina
Kina's picture

$312bn from a helicopter would have done much better. But how would that help banks and banksters line their pockets?

Wed, 01/30/2013 - 10:11 | 3198472 kridkrid
kridkrid's picture

that's the hyperinflation moment... if it ever happens.  As it stands now, huge quantities of "money" are providing an illusion of something other than a complete freefall.  It's kind of creating a market for some houses, it's proping up the stock market and it's the market for treasuries and other worthless crap.  This will all end... badly.

Wed, 01/30/2013 - 10:11 | 3198444 Hopium Dealer
Hopium Dealer's picture

I'm bullish food stamps and Newport cigarettes. Bet on Obama's youth.

Wed, 01/30/2013 - 10:27 | 3198534 otto skorzeny
otto skorzeny's picture

that's racist-black guys smoke Kools

Wed, 01/30/2013 - 10:30 | 3198550 Hopium Dealer
Hopium Dealer's picture

Kools?!?! What cardboard Obamaville have you been hanging around at?

Wed, 01/30/2013 - 10:06 | 3198445 PUD
PUD's picture

The magic of debt as money, interest compounding, usury and debt for consumption....the very foundation of the mathematically flawed system they fight like the Taliban to preserve.

Nothing will change, nothing will get addressed. They do not even understand the problem.

Game Set Match

Wed, 01/30/2013 - 10:20 | 3198505 kridkrid
kridkrid's picture

what you say is spot on minus "they do not even understand the problem".  These are not dumb people.  These people are sociopaths.  Our eventual misery is not a problem to them.  Collectively, normal people have a huge blindspot with respect to the sociopaths who run the world.  We project our code of decency onto them... expect that they serve in our interest... assume that assigning horrible motives to their actions is hyperbole or conspiracy theory.  This is a mistake.

Wed, 01/30/2013 - 10:58 | 3198710 Spastica Rex
Spastica Rex's picture

I learned a new word on ZH yesterday: KAKISTOCRACY.

Wed, 01/30/2013 - 11:30 | 3198851 kridkrid
kridkrid's picture


Wed, 01/30/2013 - 10:05 | 3198446 Water Is Wet
Water Is Wet's picture

"The market" is getting crushed on this GDP news.  Dow futures are down 16 now!  I don't remember the last time it was this bad.

Wed, 01/30/2013 - 10:28 | 3198535 otto skorzeny
otto skorzeny's picture

green by close

Wed, 01/30/2013 - 10:42 | 3198617 astoriajoe
astoriajoe's picture

green by open.

fixed it.

Wed, 01/30/2013 - 10:05 | 3198447 fonzannoon
fonzannoon's picture

"the negative print in the 4th qtr proves the fed was right to be doing what it has been doing" Jim Cramer

Wed, 01/30/2013 - 10:17 | 3198492 Dr. Engali
Dr. Engali's picture

I'm ot usually a violent person, but I sure would like to kick that guy in the nuts.

Wed, 01/30/2013 - 10:29 | 3198543 Whiteshadowmovement
Whiteshadowmovement's picture

+1 lol

Cramer is king of double speak:

Jim Cramer on October 10 (lightning round): "There are issues involved in these mortgage REITs. They might not do as well in this environment. The dividend could go down a little bit. But you stick with these kinds of stocks through thick and thin. I'm not backing away from it."
AGNC Price: $33

Jim Cramer on January 15 (lightning round): ""I used to fight this tooth and nail, because the dividend was a red flag. I now believe it can handle this yield. The dividend might not always stay this high, but I would buy it."
AGNC Price: $31

Wed, 01/30/2013 - 10:43 | 3198629 Dr. Engali
Dr. Engali's picture

The very fact that that guy is even on the air kills me, especially after the Bear Stearns fiasco. Even after  that and all of his missed calls I still know people who follow him faithfully. The stupidity of the sheep never ceases to amaze me.

Wed, 01/30/2013 - 10:45 | 3198636 Cognitive Dissonance
Cognitive Dissonance's picture

When one is (trapped) in a cult one must never question the cult leaders.

<Especially those who foam at the mouth.>

Wed, 01/30/2013 - 10:59 | 3198713 fonzannoon
fonzannoon's picture

Cramer gets the boot this year.

His smirkiness behind these statements means he truly enjoys mindscrewing the public. He enjoys it a little too much. Guys like him always need the satisfaction of their victims knowing who assaulted them. He is going to slip.

Don't worry they will replace him with another douchebag.

Wed, 01/30/2013 - 11:15 | 3198797 Whiteshadowmovement
Whiteshadowmovement's picture

Lol, I love that his basic premise is conviction in his opinions!

In all seriousness, the egregiousness of Cramers act is up there with cash4gold

Wed, 01/30/2013 - 11:58 | 3198986 Hippocratic Oaf
Hippocratic Oaf's picture

Same here Dr., I happen to be sitting 15ft. away from a trader that nearly bankrupt a then small firm buying Bear before it shot down to 2$

Wed, 01/30/2013 - 11:00 | 3198717 fonzannoon
fonzannoon's picture

My Dad still bitches that he listened to Cramer and sold Linkedin at $105

I asked my Dad what linked does and he was not sure.

Wed, 01/30/2013 - 11:14 | 3198790 Whiteshadowmovement
Whiteshadowmovement's picture

Haha, that was literally laugh out loud funny! Do you also manage money for him fonz?

Wed, 01/30/2013 - 11:22 | 3198824 fonzannoon
fonzannoon's picture

Nah he is retired and is the one that got me into this racket.

Whiteshadow you ever think of this run up as some slow motion kind of crack up boom for anyone left who actually has two nickels to rub together?

Wed, 01/30/2013 - 11:49 | 3198867 Whiteshadowmovement
Whiteshadowmovement's picture

All the time fonz, but at the end of the day it just seems so counter-intuitive, the Fed has gotten so good at smoothing out its rigging and they are so close to sucking retail back in they can taste it. Why throw it all away on another "crash"? What would it accomplish? I know the market is always set up to inflict as much pain on as many participants as possible but the name of the game is melt up with mild orchestrated volatility from time to time. Plenty of money to be made from all the people trying to fight it.

PS- i posted again on yesterdays discussion thread earlier

Wed, 01/30/2013 - 11:51 | 3198953 fonzannoon
fonzannoon's picture

Okay, I saw what you posted last night but I did not see anything else. I gotta head out for a bit will check again later.

Wed, 01/30/2013 - 12:01 | 3198997 Whiteshadowmovement
Whiteshadowmovement's picture

No worries bro, wouldnt it be nice if the great MMT experiment did work out afterall, that way we could all just go on welfare and wouldnt have to let "work" and "duties" get in the way of hanging here all day!

Wed, 01/30/2013 - 10:07 | 3198449 Cognitive Dissonance
Cognitive Dissonance's picture

"I see nothing, I know nothing." - Sergeant Schultz

Wed, 01/30/2013 - 11:03 | 3198732 Dr. Engali
Dr. Engali's picture

Hey CD when is the second part of your post hitting the Hedge?

Wed, 01/30/2013 - 11:13 | 3198778 Cognitive Dissonance
Cognitive Dissonance's picture

I'm doing the final read thru now so it should be in the next day or two. Chapter Two has gone long, but there is no natural break where I can separate it out into Chapters Two and Three without losing continuity.

So damn the torpedoes full speed ahead.

Wed, 01/30/2013 - 11:19 | 3198809 Dr. Engali
Dr. Engali's picture

Looking forward to it.

Wed, 01/30/2013 - 10:06 | 3198452 Yen Cross
Yen Cross's picture

 Now that dumb ass cramer is trying to blame Sandy on the GDP print. What a brain dead moron.

Wed, 01/30/2013 - 10:07 | 3198454 q99x2
q99x2's picture

Gold and Silver is getting a morning rise out of it.

Wed, 01/30/2013 - 10:09 | 3198463 Cognitive Dissonance
Cognitive Dissonance's picture

Morning wood. Good to see that the PMs still want to play around a little. :)

Wed, 01/30/2013 - 10:09 | 3198462 schatzi
schatzi's picture

Obviously not printing enough Mr. Bernanke. Take a look at Japan's Abe. He can teach you a thing or two how it's really done.

Wed, 01/30/2013 - 10:08 | 3198464 Shizzmoney
Shizzmoney's picture

Don't worry, we just gave $155 million in "humanitarian aid" to Syria yesterday.

Well buy up a ton of guns and grenades to give to the insurgency and BOOM! GDP beat in no time!

Wed, 01/30/2013 - 10:14 | 3198480 djcando
djcando's picture

Firearms stocks!

Wed, 01/30/2013 - 10:28 | 3198542 otto skorzeny
otto skorzeny's picture

assad don't give a shit-he just knocked up his decent-looking old lady

Wed, 01/30/2013 - 10:14 | 3198478 CheapBastard
CheapBastard's picture

Velocity of all that money must be near zero.

Wed, 01/30/2013 - 10:14 | 3198483 Tsunami Wave
Tsunami Wave's picture

Shhhhhhh. Don't tell that to douchebag extraordinare Paul Krugman.

Don't look now, but he's currently live on The Washington Journal on C-SPAN continuing to spew his BS.

Wed, 01/30/2013 - 10:15 | 3198488 Dr. Engali
Dr. Engali's picture

Yeah but just think how bad it would have been if they hadn't spent all that money. Just ask Krugman he will tell you.

Wed, 01/30/2013 - 10:17 | 3198491 Michelle
Michelle's picture


Wed, 01/30/2013 - 10:17 | 3198497 firstdivision
firstdivision's picture

Who's dumping their UST's with with GDP print?  Retracing its gains.

Wed, 01/30/2013 - 10:17 | 3198499 Al Capowned
Al Capowned's picture

They are printing enough money to buy the worlds entire above ground silver supply every 10 days!

Got Silver??

Wed, 01/30/2013 - 10:17 | 3198500 LongSoupLine
LongSoupLine's picture

Holy fuck...futures are red.

Quick, someone throw a middle class fucking taxpayer into a fucking wall and get this piece of shit fucking market up.

Wed, 01/30/2013 - 10:20 | 3198511 astoriajoe
astoriajoe's picture

they've got 11 minutes to ramp things up. Plenty of time. Anyone for coffee?

Wed, 01/30/2013 - 10:18 | 3198502 GMadScientist
GMadScientist's picture

Q4 US GDP added.

Wed, 01/30/2013 - 10:21 | 3198512 Sudden Debt
Sudden Debt's picture


what a nice word..:)

Wed, 01/30/2013 - 10:22 | 3198513 holdbuysell
holdbuysell's picture

So this is what passing the Event Horizon looks like.

Wed, 01/30/2013 - 10:24 | 3198521 madcows
madcows's picture

So much for that "Government Spending Multiplier" crap they keep citing.  F'in morons.  At this rate we'll hit China in no time.

Wed, 01/30/2013 - 10:25 | 3198526 Miss Expectations
Miss Expectations's picture

George Carlin talking about drugs.."wonderful when you try them you increase and keep using what ever it is...the pleasure part decreases and the pain part (the price you pay) increases until the balance is completely the other way and it's almost all pain and there's hardly any pleasure."

Wed, 01/30/2013 - 11:02 | 3198728 Dapper Dan
Dapper Dan's picture

law of non-proportional returns, kinda sorta

Not that I know about it!

Wed, 01/30/2013 - 10:26 | 3198529 yogibear
yogibear's picture

Bubble Bernanke and the Federal Reserve's secret financial plan....


The Federal Reserve cannot exit, the talk is all BS.

A currency crisis is straight ahead. The Federal Reserve is headed full steam ahead to a US dollar collapse. 

Wed, 01/30/2013 - 10:26 | 3198531 centerline
centerline's picture

We crossed the point of macroeconomic debt saturation some time ago.  Look up "Chart of the Century."  In real terms, new debt created now subtracts from GDP.

Hence, organic growth is dead.

At this point we are truly in the Bugs Bunny moment where we have gone off the cliff but haven't yet fallen because we haven't looked down.

On a similar note, heard a radio piece this morning about Credit Unions pushing people to save, systems being overhauled to removed disincentives for savings, etc.  All I could think is how all these actions are deflationary.  Funny.

On a completely different note, heard that BP was charged with manslaughter and lying to Congress among other charges and has to pay a fine.  How the fuck did we come to this place where corporations are "people" but there is no prison time?  Maybe we all need to form trusts, and have ZH create a parent corporation.  All of our trusts can buy into the parent corporation and from there we can rain hell?  Is that how it is done?  Maybe this is how communities should proceed.  And blocks of smalle privately owned companies.  WTF.

Wed, 01/30/2013 - 10:57 | 3198702 Spastica Rex
Spastica Rex's picture

"At this point we are truly in the Bugs Bunny moment where we have gone off the cliff but haven't yet fallen because we haven't looked down."

We'll see. I thought this was the case in 2008.

Wed, 01/30/2013 - 13:05 | 3199217 optimator
optimator's picture

And all those idiots on CNBS are reminding me of what the guy that fell off the Empire State Building said as he passed the 50th floor.  "I'm O.K. so far".

Wed, 01/30/2013 - 10:28 | 3198541 WaEver
WaEver's picture

MDB is Ben. Welcome Ben, now start printing !

Wed, 01/30/2013 - 10:30 | 3198546 Inthemix96
Inthemix96's picture

Listen boys and girls.

You were told last week from Davos, the fine upstanding members of the worlds most acclaimed show-runners, inbetween child molesting and child sacrifice that you dont know what you are talking about.

The King of the Overlords "Dimon" explained in plain English for you that "Banking is like a jet engine, its too complicated for the average grunt, sorry bloke to get his head around".

How more plain do we bitchez need to be told to mind your manners and continue to service their pernicious needs?

Get back on your hamster wheel kids and make sure Dimons bonus this year is more than last year.

Wed, 01/30/2013 - 10:33 | 3198567 Peter Pan
Peter Pan's picture

What do you epect if the billions go towards imports and wars in foreign countries.

Wed, 01/30/2013 - 10:34 | 3198571 yogibear
yogibear's picture

As the US dollar collaspes and the Federal Reserve continues to print like madmen the commodities are going to the unreal numbers because it will be where all the money moves.

Wed, 01/30/2013 - 10:34 | 3198574 Confundido
Confundido's picture

But, but the drop in GDP would have been way worse, had the $312BN not been there, right?

GOLD bitchez! We will torch blow gold at 2:15pm, when we tell the market we discussed the exit strategy for when unemployment (as defined by us) hits 7%.... Be ready for that algo move that takes you back where you belong!


You have no way out. You shall accept all the fiat money we print!

Wed, 01/30/2013 - 10:35 | 3198575 Unprepared
Unprepared's picture

Wait until the red bar is longer than the blue [in absolute terms]

Wed, 01/30/2013 - 10:37 | 3198589 world_debt_slave
world_debt_slave's picture

GDP has never been a true economic indicator, it's just anothe government construct to fool the simple.

Wed, 01/30/2013 - 10:36 | 3198591 Iriestx
Iriestx's picture

Nigga what?

Wed, 01/30/2013 - 10:42 | 3198598 nantucket
nantucket's picture

but just imagine how horrible our lives would have been if they DIDN'T increase the debt that much.  the horror, the horrrrrrrror.  they SAVED us from certain annihilation.  we owe our lives to geitner, et al. 



Wed, 01/30/2013 - 10:40 | 3198599 El
El's picture


Wed, 01/30/2013 - 10:40 | 3198603 Caracalla
Caracalla's picture

Markets are already green.  Wish the 1Q 2013 GDP would come in at -5.0%

Wed, 01/30/2013 - 10:41 | 3198618 SmallerGovNow2
SmallerGovNow2's picture

WTF?  Gold just went verticle...

Wed, 01/30/2013 - 10:42 | 3198624 Uncle Zuzu
Uncle Zuzu's picture

We need an intelligent person in the oval office.  What is George W. doing nowadays?

Wed, 01/30/2013 - 10:56 | 3198700 WTFUD
WTFUD's picture

Bush? Dying painfully,Hopefully!

Wed, 01/30/2013 - 10:42 | 3198626 DUNTHAT
DUNTHAT's picture

Both the Chicago Fed reports and ISM Mfg all pointed to this.

See MacroEconomy Report Link

Wed, 01/30/2013 - 10:42 | 3198627 DUNTHAT
DUNTHAT's picture

Both the Chicago Fed reports and ISM Mfg all pointed to this.

See MacroEconomy Report Link

Wed, 01/30/2013 - 10:46 | 3198642 smartstrike
smartstrike's picture

So now you are Keynesian?

Wed, 01/30/2013 - 11:17 | 3198802 Tyler Durden
Tyler Durden's picture

Did Keynesian logic lead you to that conclusion?

Wed, 01/30/2013 - 10:54 | 3198686 yogibear
yogibear's picture

Bernanke and the Fed are going to print like madmen until the trigger a US dollar collaspe and a currency crisis.

Bernanke, Evans, Dudley, Bullard and Yellen, can you say Zimbabwe?

Wed, 01/30/2013 - 10:55 | 3198693 Spastica Rex
Spastica Rex's picture

Defense Cuts Blamed fo Economic Slowdown, so says CNN.

Uncle Sam stopped borrowing as much?

Wed, 01/30/2013 - 11:08 | 3198752 WTFUD
WTFUD's picture

Ben loves Jamie loves Floyd loves Ben

Ain't no mountain High enough. .
Ain't no river wide enough. . .
Ain't no printer Cheap enough. . .
To keep me from printing to you

you don't have to worry
i'll be there in a hurry

Wed, 01/30/2013 - 11:08 | 3198755 Michelle
Michelle's picture

What can they expect when all the money goes directly to the 1% and the 99%'ers get nada? As blatant as this has become I don't see why they just don't fire up the check printers instead and write PAY TO THE ORDER OF: Hank Paulsen, George Soros, Jamie Dimon....

Wed, 01/30/2013 - 11:34 | 3198870 TonyCoitus
TonyCoitus's picture

OMG, could there be anything more bullish than that?

For fucking fucks sake, BUY THE FUCKING DIP! 

Wed, 01/30/2013 - 12:01 | 3198991 JJ McApe
JJ McApe's picture

Who cares about GDP anyway ;)

BUY Some Blackberrys ;-((((

but tbh thats quite scary, looks like all that money printing will eventually destroy the GDP as well.

and ben is like... WE DIDN'T SEE THAT COMING Q.Q

Wed, 01/30/2013 - 18:20 | 3200472 DowTheorist
DowTheorist's picture

This is why long-term bonds are turning really bearish long term and the vital BLV (long-term bond ETF) / GLD ratio is turning bearish denoting relatively stronger gold. Bearing in mind that GLD is weak of late, bonds must be really weak for the ratio to be bullish for gold. The chart of the ratio (red thick line) says it all:



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