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US GDP Will Be Revised Higher By $500 Billion Following Addition Of "Intangibles" To Economy

Tyler Durden's picture


Those who have been following the US debt to GDP ratio now that the US officially does not have a debt ceiling indefinitely, may have had the occasional panic attack seeing how this country's leverage ratio is rapidly approaching that of a Troika case study of a PIIG in complete failure. And at 107% debt/GDP no explanations are necessary. Luckily, the official gatekeepers of America's economic growth (with decimal point precision), the Bureau of Economic Analysis have a plan on how to make the US economy, which is now growing at an abysmal 1.5% annualized pace, or about 5 times slower than US debt growing at 7.5% annually, catch up: magically make up a number out of thin air, and add it to the total. And it literally is out of thin air: according to the FT the addition will constitute of a one-time addition of intangibles, amounting to 3% of total US GDP, or more than the size of Belgium at $500 billion, to the US economy.

From FT:

The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.


Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output.


Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.


“We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.

What exactly will constitute GDP growth going forward? In a word, intangibles: films, books, magazines and iTunes songs.

“We’re capitalising research and development and also this category referred to as entertainment, literary and artistic originals, which would be things like motion picture originals, long-lasting television programmes, books and sound recordings,” said Mr Moulton.


At present, R&D counts as a cost of doing business, so the final output of Apple iPads is included in GDP but the research done to create them is not. R&D will now count as an investment, adding a bit more than 2 per cent to the measured size of the economy.

Nothing like adding intangibles in the fluid, ever-changing definition of what constitutes an economy.

Naturally, the only reason for this artificial "boost" to the US economy which apparently can be any old arbitrary number agreed upon by a few accountants, and which always goes up post revision, never down, is to make US debt/GDP under 100% once again, if only very briefly. Surely a few months later something else can be "added" to GDP making the US economy appear better than it is once more.

Finally, all of the above is a distraction for idiots.

As most people should know by know (this logically excludes economists), the only factor leading to economic "growth" is the expansion of liabilities of the financial system, whereby new credit (in a healthy environment, not one centrally-planned by several Princeton real-world rejects, where the central bank is forced to create all credit expansion with money that never leaves the banks and the capital markets closed loop) creates new money, creates demand for products and services, and circulates in the economy.

This can be seen in the chart below which shows the nearly perfect correlation between total bank liabilities in the US, as per the Fed's Flow Of Funds report, and total US GDP.

Bottom line: the BEA can capitalize air consumption if it thinks it will make US GDP soar, but unless new credit and bank liabilities are created not due to forced supply but demand, and unless the private financial sector is finally willing to start lending money (which for the entire duration of QE it has not) US growth will stall and then proceed to decline.

Case in point: total US commerical bank loans are still lower than they were the day Lehman filed.

In other words, all the GDP "growth" since the Lehman failure has come on the back of money "created" by the Fed.

And there are still those who think the Fed will ever unwind...


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Sun, 04/21/2013 - 20:44 | 3481909 ihedgemyhedges
ihedgemyhedges's picture

Intangibles, seasonal adjustments, etc etc.  They'll do whatever it takes.........

Sun, 04/21/2013 - 20:45 | 3481919 SolidSnake961
SolidSnake961's picture

what intangibles? the bullshit ability of the BLS and the Fed?

Sun, 04/21/2013 - 20:49 | 3481939 HD
HD's picture

Intangible: SEE HOPIUM


Sun, 04/21/2013 - 20:51 | 3481949 Cdad
Cdad's picture

Fabulous.  Yet more Banana Tree Republic crap from the failed status quo of America.  Yeah....more of that nonsense, please.  

Sun, 04/21/2013 - 21:08 | 3482025 toys for tits
toys for tits's picture

It must be serious now.  You know what that means.


Funny statement from Tyler: "Finally, all of the above is a distraction for idiots."

Sun, 04/21/2013 - 21:20 | 3482080 MisterMousePotato
MisterMousePotato's picture

This honestly reads like something from The Onion.

I give up.

Sun, 04/21/2013 - 21:33 | 3482126 Pinto Currency
Pinto Currency's picture


Fractional reserve GDP.  Nice.

Sun, 04/21/2013 - 21:37 | 3482134 Stackers
Stackers's picture

And the biggest GDP lie of all are "imputations"

or transactions that never even happened. Like the rent you should have paid yourself if you own your home. Or your free checking, which you should have paid for.

Sun, 04/21/2013 - 21:48 | 3482195 Pool Shark
Pool Shark's picture



Hey! I like that. I think I will lend myself $1 trillion.

I am now an 'imputed' trillionaire!!!


Sun, 04/21/2013 - 22:05 | 3482262 Cognitive Dissonance
Cognitive Dissonance's picture

"Hey Rocky. Watch me pull a rabbit out of my hat."


"Nothing up my sleeve. Presto!........Whoops. Gotta get me another hat."

Sun, 04/21/2013 - 22:07 | 3482269 WmMcK
WmMcK's picture

That trick never works.

Sun, 04/21/2013 - 22:09 | 3482278 Cognitive Dissonance
Cognitive Dissonance's picture


The Bureau of Economic Analysis would have you believe otherwise. :)

Sun, 04/21/2013 - 23:40 | 3482510 knukles
knukles's picture

Next addition coming January 2014 when the latest additions fail to revise Current Abysmal Growth* will be

Joyous Frivolities
Sound Sleep
Wet Doggie Noses
Talking Parrots
Christmas Cheer (to be revised into Kwanza)
Past Advances in Social Justice

What could go wrong?
Yes, no questions about it, considering the quality of records kept since 1929

Fucking Idiocy

*remember, the net long term effect will generally be a one time jump in the accumulated GDP figures and become increasingly less with the passage of time which the BLS, et al will readjust with annual millennial readjustments (no such thing to yet be invented and itself added to the New Shit)


Nothing that any Good Olde Bond Guy can't cope with (as in ignore)

PS.  All my uber-liberal buds are gonna trumpet this as a Miracle of The Messiah, his very own little self, ain't shit grand
Krugman'll have a 4 hour purple throbber.

PSS  By God's Wounds I hate these fucking people.


Sun, 04/21/2013 - 23:47 | 3482539 Richard Chesler
Richard Chesler's picture

In other words, Obozonomics.

Mon, 04/22/2013 - 01:44 | 3482702 Boris Alatovkrap
Boris Alatovkrap's picture

On occasional, Boris is like long hot bath and is make steamy bubble of similar intangible.

Sun, 04/21/2013 - 23:53 | 3482555 AlaricBalth
AlaricBalth's picture

As it stands right now, oil and gas production account for about 1% of GDP. If we add all of the noxious hot air being produced in Washington we can certainly boost GDP by another trillion annually. Then if we can include the bullsh-t manufactured by the MSM we will have our debt/GDP ratio down to under 50%.

Mon, 04/22/2013 - 01:07 | 3482663 Spinelli
Spinelli's picture

Quantifying MSM bullshit would take an einstein like figure and a 50 year period for people to understand the complex equations involved... Ive tried myself but always get NAN or infinity...

Mon, 04/22/2013 - 00:06 | 3482580 A Nanny Moose
A Nanny Moose's picture

I think you for got to add "dropping a deuce" to that list

Mon, 04/22/2013 - 03:55 | 3482852 StychoKiller
StychoKiller's picture

Please to add the "intangilbe" of ignoring Reality (well, until the consequences of said ignoring bites everyone's head off...)

Sun, 04/21/2013 - 22:13 | 3482284 Dr.
Dr.'s picture






.. so the FED's monetizing Bitcoin now? /sarc





Mon, 04/22/2013 - 02:28 | 3482781 Urban Redneck
Urban Redneck's picture

If they simply counted FED UST monetizations they could solve their GDP problem instantly.

Sun, 04/21/2013 - 22:09 | 3482272 butchee
butchee's picture

Does this mean I should buy those DJIA 16k August Calls?

Mon, 04/22/2013 - 01:57 | 3482700 EscapingProgress
EscapingProgress's picture

Economists have just discovered a crucial element in economic growth calculation. It's called the “add a few zeros effect”.  This occurs when there is actually no economic growth which leads to what economists call “reduction in fantastical ideas of DOW 30K and subsequent stampeed out of stawks”.  The economists influence the interdependency of this closed system loop by adjusting the data upwards.

Unfortunately, this engenders an augmentative feedback system so the data requires constant adjustment upwards in order to maintain ever increasing levels of hysterical economic fantasy. The loop then spirals out of control and millions of brainwashed muppets are swept up into the self-perpetuating vortex of absolute insanity.


Mon, 04/22/2013 - 03:56 | 3482855 StychoKiller
StychoKiller's picture

So, in summary, we can count on the support of 90% of the population (#WINNING!)

Sun, 04/21/2013 - 22:06 | 3482263 WmMcK
WmMcK's picture

I've had both of my legs imputed.

Sun, 04/21/2013 - 21:35 | 3482135 akak
akak's picture

No, but I suspect that we will not be hearing anything about "Core GDP" anytime soon.

Sun, 04/21/2013 - 22:11 | 3482288 nmewn
nmewn's picture like retroactive taxation with an infinite accounting Forward matrix

I take it all back, fuck the lawyers, kill the accountants first.

Mon, 04/22/2013 - 01:49 | 3482711 Boris Alatovkrap
Boris Alatovkrap's picture

At first they came for accountant, then they came for lawyer, then they came for banker. When all gone, no one is remain to screw me.

Mon, 04/22/2013 - 03:58 | 3482857 StychoKiller
StychoKiller's picture

Boris is have enjoinment of hot chick from Ukraine, then.  :>D

Mon, 04/22/2013 - 12:18 | 3484077 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is love wife, even if not "hot chick". Boris learn in youth keep kielbasa in trouser.

Mon, 04/22/2013 - 07:56 | 3483084 jerry_theking_lawler
jerry_theking_lawler's picture

I thought intangibles meant all the gold in Ft. Knox.....

Sun, 04/21/2013 - 21:36 | 3482139 NoDebt
NoDebt's picture

Let's add Social Security, Medicare, Medicaid, food stamps and welfare to GDP while we're at it.  The books will always balance then.

Sun, 04/21/2013 - 21:39 | 3482147 Stackers
Stackers's picture

NoDebt: They already do. It's called "redirection"

the GDP accounts redirect certain transactions so that the consumption is attributed to the ultimate recipient of the good or service rather than to the payer.  An important example is health care, which is generally paid for by private health insurance (often provided by the employer), by government insurance plans such as Medicare and Medicaid, or by consumer out-of-pocket payments for deductibles, copayments, and uninsured expenses.  In the GDP, these health-care transactions are redirected so that they are included in personal consumption expenditures, reflecting the role of households as the final consumers of those health goods and services.

Sun, 04/21/2013 - 22:14 | 3482296 NoDebt
NoDebt's picture

Stackers- thanks for the link.  I read it 3 times.  I'm a recovering economist, so it's not like I'm completely illiterate in such things.  But, man, that was a lot weirder than what they taught me back in Macro Econ!

If I can summarize what I think I learned..... GDP is a worthless statistic.  Am I close?

If you own your house, guess what- you are contributing to GDP because your house is paying you a "market housing value" every single month (do you feel richer?).  Government health care counts as GDP even though it's clearly a zero-sum game being taken from those actually producing.  Collecting royalties on a movie are now GDP with the recent revisions, above.

Shit, the whole damned economy could be nothing but rich people (or government) owning everything plus government transfer payments and GDP would still be clicking right along without a blip!

I think I see where this is headed now.  "Passive" activities are given more and more weight in GDP relative to "active" um...... activities.  Ok, ok, stupid way of describing it, but you get what I'm saying.  Since more and more people are getting by via passive sources we just include those passive sources in GDP..... problem solved!  We could all sit on our couches getting government payments (or collecting royalties, rents, etc.), producing nothing.... and GDP is blind to that. 

No wonder it feels like a depression but the "statistics" don't show it.  They're built NOT to show it!

Seriously, thank you for the link.  I need to go reexamine my whole life now.


Sun, 04/21/2013 - 22:54 | 3482416 socalbeach
socalbeach's picture

GDP is the $ amt of domestically produced goods and services.  I'm surprised they're not adding to GDP every time a baby is born in the US.

Mon, 04/22/2013 - 02:17 | 3482766 Boris Alatovkrap
Boris Alatovkrap's picture

But America is kill babies - or import from Mexico. This is to hurtful of GDP, no!?

Mon, 04/22/2013 - 02:25 | 3482777 socalbeach
socalbeach's picture

GDP is only counts domestically produced babies.  Babies imported from Mexico is not count in GDP. Is not help GDP and is not hurt GDP.

Mon, 04/22/2013 - 10:00 | 3483508 GeezerGeek
GeezerGeek's picture

I wonder if the GDP is increased when I cut my own lawn? Or when I cut my neighbor's lawn and she bakes a pie and gives it to me.

Thus far we have not been forced to declare such interactions as income.

Sun, 04/21/2013 - 23:12 | 3482466 Clever Name
Clever Name's picture

Wow, that is unreal.

Another important imputation measures financial services provided by banks and other financial institutions either without charge or for a small fee that does not reflect the entire value of the service

Assumedly this (maybe this is a bad example, actually) 'service' provided without charge is built into the 'cost' of banking, as in the lower interest rate they give you? Assuming that its not built in, the bank offers it for free, but the govt will assign a value to it to add to GDP? How much is a ketchup packet at McD's worth? Is that factored in also? Why not?

Wait, I think I know. Maybe because it will show how important said banks are to GDP? This is why theyre tbtf! If I open a free checking account at every bank that has no minimum with $.01, think of how much I'll be adding to GDP! I am a GDP mulitplying force to be reckoned with! Do your part!

The real question is, what would GDP be without these numbers added in?

If I can summarize what I think I learned..... GDP is a worthless statistic.  Am I close?

No, no, no, of course not. Dont you see the value of a free service? You should be happy to be a valued customer of   (strikethru not working?) serve a TBTF bank!

Sun, 04/21/2013 - 23:49 | 3482547 Pool Shark
Pool Shark's picture




If I'm reading this correctly; we should all steal ketchup packets from McDonalds to help increase GDP?

Wow! What would be the effect if we also broke a window on the way out?


Mon, 04/22/2013 - 12:26 | 3482764 Boris Alatovkrap
Boris Alatovkrap's picture

Now you are get clue. If is work together, can break many shop windows and all is get rich!

Mon, 04/22/2013 - 02:13 | 3482755 SimplePrinciple
SimplePrinciple's picture

Unreal is right.  Take R&D.  Commerically successful R&D produces value in terms of the value it adds to product sales.  R&D is an intermediate service.  If you count the spending as a final service, then you would be double counting as the the full value of the extra sales from the R&D that facilitated that output are already counted.  In that case, you should subtract the R&D expenses from the value of output already sold in prior years.  Don't see em doing that, so double counting!

Mon, 04/22/2013 - 00:09 | 3482584 A Nanny Moose
A Nanny Moose's picture

"The economy" is but an abstraction. It's measurement managed by unproductive bureacrats who work for yet another abtraction (The People), by producing absolutely nothing. Go with that which is real.

Mon, 04/22/2013 - 04:01 | 3482860 StychoKiller
StychoKiller's picture

Mmm, crazee pills (eat 'em by the handful!)

Mon, 04/22/2013 - 08:46 | 3483239 Jake88
Jake88's picture

Yeah. The happy feeling we get when the stock market rises. The wealth effect. Look around. Isn't everyone 500 billion worth of happy.

Mon, 04/22/2013 - 10:36 | 3483655 natronic
natronic's picture

Looks like the Fed's haven't run out of tricks yet.  Funny the stock market is going down today since it's been announced.

Sun, 04/21/2013 - 20:51 | 3481944 LetThemEatRand
LetThemEatRand's picture

They should simply account for the cost of fuel for Ben's helicopter.  And ink.  And cotton and paper.  That would raise GDP by a huge percentage.

Sun, 04/21/2013 - 20:59 | 3482000 YHC-FTSE
YHC-FTSE's picture

They're gonna add that next month, a one-time (honest!) Inclusion to the GDP under "Incidentals". $1 trillion ought to do it.

Sun, 04/21/2013 - 21:08 | 3482028 Stuck on Zero
Stuck on Zero's picture

If they would add in under-the-table payments, graft, shakedowns, extortion, Congressional gratuities, Senatorial kickbacks, House of Reps free corporate travel perks,  benefits for legislation, Vatican Bamk account interest gleaned by staffers, Bahamian stock shorts by Whitehouse staffer insiders, and mysterious foil wrapped refrigerator packages they could boost the GDP by another 5-10%.


Sun, 04/21/2013 - 22:04 | 3482259 max2205
max2205's picture

Yes you can make this up

Now Japan can add breathing t o their CPI

Mon, 04/22/2013 - 06:38 | 3482951 Go Tribe
Go Tribe's picture

Do they still use cotton to make FRNs? I didn't realize they had something physical in them.

Mon, 04/22/2013 - 09:38 | 3483411 Bad Attitude
Bad Attitude's picture

Maybe it's time to distinguish between FRNs - physical pieces of paper with ink smeared on them - and dollars. FRNs are just a claim to dollars, while dollars are just a ledger entry at the Federal Reserve.

FRNs have some intrinsic value. They can be repurposed for use as toilet paper, to help fuel a cooking fire, or held and sold as a novelty (like the Nigerian 2 trillion dollar notes) after the US dollar is replaced by a new monetary unit. The ledger entry is nothing more than some magnetic domains on a disk drive in some data center.

Forward (over the cliff)!

Mon, 04/22/2013 - 07:29 | 3483028 Silverhog
Silverhog's picture

Intangibles? Is that like Hummels and Franklin Mint plates?

Sun, 04/21/2013 - 21:23 | 3482090 freedogger
freedogger's picture

I hope someone gets a Nobel prize for this. Its brilliant. Kinda like a giant red easy button!

Sun, 04/21/2013 - 22:11 | 3482280 toys for tits
toys for tits's picture

I can get behind this intangible calculation.


Sun, 04/21/2013 - 21:39 | 3482146 dcohen
dcohen's picture

Cool, now they have to resort to imaginary numbers (i) hahahaha, one thing is for sure, the US gov are a set of funny Bozos

Sun, 04/21/2013 - 23:09 | 3482460 espirit
espirit's picture

Go ahead and squeeze the wheeze.

Sun, 04/21/2013 - 21:50 | 3482205 rum_runner
rum_runner's picture

I find your lack of faith disturbing.

Sun, 04/21/2013 - 22:01 | 3482247 Go Tribe
Go Tribe's picture

More viagra

Sun, 04/21/2013 - 22:04 | 3482257 Alpo for Granny
Alpo for Granny's picture

Jesus Christ. LawsofPhysics is going to stroke out when he reads this....

Sun, 04/21/2013 - 22:41 | 3482383 Blano
Blano's picture

As long as we're using accounting tricks, how about Goodwill??

I know we've used all ours up, just sayin'.

Sun, 04/21/2013 - 22:48 | 3482395 experimentals
experimentals's picture





Sun, 04/21/2013 - 23:00 | 3482436 Vince Clortho
Vince Clortho's picture

There will never be a shortage of intangibles ...  

so we got that goin' for us.


This insures that GDP figures will continue to look great as the Middle Class Disappears, and the Dollar becomes worthless.

Sun, 04/21/2013 - 23:26 | 3482501 prains
prains's picture

the only intangible left for the Various States of Detroitification is WHEN it will be all DETROITIFIED, it's not IF but WHEN at this point

Sun, 04/21/2013 - 20:50 | 3481914 IamtheREALmario
IamtheREALmario's picture

Yes, lets print intangibles now ... printing dollars does no good.

As a guy I work with says: "If you change the way you measure, then all of the data that preceded the change is worthless".

Sun, 04/21/2013 - 22:03 | 3482251 RafterManFMJ
RafterManFMJ's picture

He's absolutely correct. I used to measure my penis in inches, then switched to centimeters as that number sounds much better, and women have no idea what the metric system is.

Now I measure displacement in a beaker of water, and report size in cubic centimeters.

Mon, 04/22/2013 - 01:34 | 3482686 Spinelli
Spinelli's picture

Thats a brilliant idea! Im going to look up the combined atomic weight of mine straight away!

Sun, 04/21/2013 - 20:45 | 3481917 Silver Garbage Man
Silver Garbage Man's picture

Intangible is bang on.

Sun, 04/21/2013 - 20:51 | 3481956 Hedgetard55
Hedgetard55's picture

"Tangible" is so 2012.

Sun, 04/21/2013 - 20:46 | 3481920 HD
HD's picture

No shame these people.  Change the rules until they are meaningless.

Mon, 04/22/2013 - 00:42 | 3482637 Meat Hammer
Meat Hammer's picture

And now they don't even try to hide it, so you know it's getting really bad.

Won't be long now.    <----- I've been saying that for a long time now.  

Mon, 04/22/2013 - 05:48 | 3482914 cynicalskeptic
cynicalskeptic's picture

'Rules?!?!?!   WHAT Rules?"

Sun, 04/21/2013 - 20:48 | 3481934 Hongcha
Hongcha's picture

... and shorts get roasted again.  Go long materials and miners but don't short, you are pissing against the wind.

Sun, 04/21/2013 - 21:18 | 3482070 toys for tits
toys for tits's picture

If you review miners after 1929, they started rising at about the 5 year mark and then went parabolic.  

But then again they didn't have the etf's nor crazy QE diverting funds away.

Sun, 04/21/2013 - 20:48 | 3481937 fonzannoon
fonzannoon's picture

Itunes. I fucking knew it. I kept saying we were in a depression but all my data was ex itunes.

Sun, 04/21/2013 - 21:15 | 3482060 toys for tits
toys for tits's picture

I bet you left out nail salons as well.

Sun, 04/21/2013 - 21:18 | 3482066 fonzannoon
fonzannoon's picture

Oh just pile on now that all my data is sucpect....

Sun, 04/21/2013 - 21:20 | 3482078 toys for tits
toys for tits's picture

Don't feel bad, the BLS did for about a decade as well.

Sun, 04/21/2013 - 22:46 | 3482401 Blano
Blano's picture

Don't know if "sucpect" was intentional, but I'm stealing it anyways.  : )

Sun, 04/21/2013 - 20:49 | 3481942 Everyman
Everyman's picture

They just keep making shit up!  Unbelievable.  They want an "accurate" version off GDP yet take out energy and food in the less accurate "inflation" and don't get me started on unemployment.

These fucks are not even trying anymore.  They just make shit up, and the more nutty and silly it is, the more they just say, "meh"!

Sun, 04/21/2013 - 20:54 | 3481969 fonzannoon
fonzannoon's picture

"They just keep making shit up! Unbelievable"


Sun, 04/21/2013 - 21:02 | 3482011 Cabreado
Cabreado's picture

Imagine the sycophantic forces in play that enable such things...

Imagine how overwhelmingly stupid-and-chaotic it all has to be, underneath it all...

We are destroying ourselves in high definition, rounded corners and all.

Sun, 04/21/2013 - 21:24 | 3482092 Everyman
Everyman's picture

I am writing that one down:

We are destroying ourselves in high definition, rounded corners and all.


Mon, 04/22/2013 - 06:39 | 3482955 Go Tribe
Go Tribe's picture

The matrix is falling in place rather quickly. Final lockdown will happen before anyone realizes it, and after that it won't matter.

Sun, 04/21/2013 - 21:11 | 3482042 JackT
JackT's picture

This is how it works. Intellects best. And over time it'll be forgotten that all these secret ingredients have been added. When the scaffolding comes crashing down it will be a complete shock to the intellects.

Sun, 04/21/2013 - 21:57 | 3482232 toys for tits
toys for tits's picture

I literally can't put my finger on what they are adding.


Sun, 04/21/2013 - 21:55 | 3482231 yogibear
yogibear's picture

This encourages more people to get on Social Security Disability, Food stamps, free rent, free phone and spending money.

Why work and pay taxes?

Live the good life on printed money and GDP. A good portion doesn't produce anything except debt.


Mon, 04/22/2013 - 03:47 | 3482845 August
August's picture

None of the kids who are really with it heat their apartments anymore.

Mon, 04/22/2013 - 04:09 | 3482865 StychoKiller
StychoKiller's picture

Airplane Pilots can't just add or subtract 5000ft on their altimeter readings, people could get killed, Doctors can't just shave off 10mm/Hg off your blood pressure because the patient might die, yet the Decepticrats and Republicons can make up any measurement they want for the Economy?  Time to crack open a bottle of Absinthe...

Sun, 04/21/2013 - 20:50 | 3481945 Seasmoke
Seasmoke's picture

c'mon this is the USA, our intangibles have to be worth more than a lousy $500 billion !!!

Sun, 04/21/2013 - 21:24 | 3482095 Everyman
Everyman's picture

Yeah, I mean hell, if it is intangible, at least make it worth a cool Trillion!

Mon, 04/22/2013 - 01:40 | 3482691 Spinelli
Spinelli's picture

Yea... Id like to see the numbers on how they quantified the value of art.... Anyone got a link?

Sun, 04/21/2013 - 20:50 | 3481948 Yen Cross
Yen Cross's picture

  i-shit repothetcation is passe'

Sun, 04/21/2013 - 20:51 | 3481950 Irene
Irene's picture

Since we're #1 in the world in illicit drug use, just add all the drugs.  Growth would be off the charts.

Mon, 04/22/2013 - 07:09 | 3482983 onewayticket2
onewayticket2's picture

When they confiscate guns and gold, you don't simply reclassify these assets as "intangibles" on your personal balance sheet.

Sun, 04/21/2013 - 20:51 | 3481953 Freebird
Freebird's picture

No surprises here...what else do ffraudsters do but cook the books?

Sun, 04/21/2013 - 20:51 | 3481955 caimen garou
caimen garou's picture

I had enough when they got to the part"we are rewriting  economic history." why not just build a time machine, assholes! 

Sun, 04/21/2013 - 21:58 | 3482238 yogibear
yogibear's picture

Debt production now pard of GDP. Increase debt and increase GDP. More free government money please.

Sun, 04/21/2013 - 20:52 | 3481959 Lux Fiat
Lux Fiat's picture

Based on Martenson's statistics, over 30% of GDP these days is based on hedonic adjustments.  In other words, pre-hedonics (1980s), GDP represented what most folks think of as "real"l [and govt' thinks of as "taxable"] economic activity.  Debt is much higher, and what used to be defined as economic activity is much lower, and that's before considering it being "deflated" by a bogus inflation number to get to an overstated "real" GDP.  Wow.  Toto...

Sun, 04/21/2013 - 20:51 | 3481960 FieldingMellish
FieldingMellish's picture

I'm sure all those suffering in this economic shitstorm will appreciate the fact that the economy is growing at a clip nearly as fast as the number of families on foodstamps. Bravo, spinmeisters. <golf clap>

Sun, 04/21/2013 - 20:58 | 3481961 A Lunatic
A Lunatic's picture


Sun, 04/21/2013 - 20:52 | 3481963 eatthebanksters
eatthebanksters's picture

Intangibles:  blow jobs for POTUS and favorite staff, coke and choom parties for POTUS and staff, holiday allowance for FLOTUS and the KIDSTUS...less see... what else?  The Pelosi Family Inevstment Trust, The Harry Reid Boxing Fund, and payback for all the motherfuckers that voted these jokers into office, aka Stimulus Package.

Sun, 04/21/2013 - 20:54 | 3481968 akak
akak's picture

My name is Marc to (Fraudulent) Market, and I approve this (desperate) governmental statistical action.

Sun, 04/21/2013 - 20:54 | 3481970 chinaboy
chinaboy's picture

Ha, funny accounting!

But why $500 billion? What prevent them from inventing $ 15 trillion?

Lets make the national debt intangible.

Sun, 04/21/2013 - 22:28 | 3482347 Peter Pan
Peter Pan's picture

Actually the national debt is an intangible given that it will never be paid off.


Sun, 04/21/2013 - 20:53 | 3481972 lindaamick
lindaamick's picture

Chip, Chip, Chipping away at the confidence in the Fed and Government via producing statistics and data that is out of sync with experience.

Americans may be stupid but they KNOW nothing is getting better regardless of the BS put out indicating Good Times. 


Sun, 04/21/2013 - 20:55 | 3481974 moneybots
moneybots's picture

It will be funny to see the U.S. economy crashing with a phony positive GDP rate at the time.

Sun, 04/21/2013 - 20:54 | 3481976 Everybodys All ...
Everybodys All American's picture

intangibles ... ie. corporate earnings, employment, and truth.

Sun, 04/21/2013 - 20:55 | 3481978 Yen Cross
Yen Cross's picture

  What happens when Americans go German?  [wwII]

Sun, 04/21/2013 - 20:58 | 3481984 Jim in MN
Jim in MN's picture


'In Tangibles We Trust'

--Some rat bastard on the Intertubez

Sun, 04/21/2013 - 20:59 | 3481990 Tucson Tom
Tucson Tom's picture

All new keyboards from here on in should have an "infinity " symble so we can communicate about the fed.I can`t seem to make an "8" rotate 90 degrees!

Mon, 04/22/2013 - 01:59 | 3482724 Spinelli
Spinelli's picture

Alt code 236, but i believe NAN is a better description ;)

ZH wont let me post it however :(

Mon, 04/22/2013 - 04:49 | 3482884 css1971
css1971's picture

Infinity and beyond. ?

Sun, 04/21/2013 - 20:59 | 3481991 NoDebt
NoDebt's picture

Perhaps we are all looking at this the wrong way.  Maybe we should list what basic statistics/data are NOT pulled out of thin air instead of listing all the ones that are.  It would at least be a much shorter list to deal with.


Sun, 04/21/2013 - 21:00 | 3482002 ifishivote
ifishivote's picture

If HFTs trade on headlines, Then hello dow 20,000. The MSM are going to eat this up!!

Sun, 04/21/2013 - 21:01 | 3482009 spinone
spinone's picture

are farts intangibles?  I contribute $5,578.62 of farts a year.  as cheritable donations.

Sun, 04/21/2013 - 21:44 | 3482179 WmMcK
WmMcK's picture

The buck vereth.

Sun, 04/21/2013 - 21:02 | 3482012 holdbuysell
holdbuysell's picture

GDP and Pro-forma GDP?


Sun, 04/21/2013 - 22:01 | 3482052 toys for tits
toys for tits's picture

Let me know when we get to chained GDP.

George Orwell has nothing on these guys.  The amount of double-speak is astounding.

Sun, 04/21/2013 - 21:03 | 3482014 Whatta
Whatta's picture

the various costs of the millions of unemployed (like job hunting, welfare check cashing, maintaining American Idol status) can be added to intangibles and "good will" as well.

Probably lots more to add too.

Sun, 04/21/2013 - 21:03 | 3482015 wisefool
wisefool's picture

Is this like the "intangibles" when a homebuilding corporation buys a "lot" and gets "start" on a house, and then "Sells" it to a guy who is employed by them 8 months out of the year but has 4 months of "Seasonal" unemployment "working for the state" to level out the child support, a "work truck" purchase, and/or food stamps? House keeps "making progress" and gets bought by a "speculator" who turns it out to a REIT on "Completion" followed by a no-doc loan to a "homeowner" who gives it a go, but legitimately or illegitimately ends up "moving on" usually with one of the aformentioned characters re-taking posession? That is, if Fannie/Freddie does not poke their nose out from under the federal reserves "circus like" balance sheet that day?

The good news for GDP is that some of it might generate a tax buck. At the very least ... the income tax on the "honest" accountant who handled all this.

Sun, 04/21/2013 - 22:38 | 3482375 philosophers bone
philosophers bone's picture

Classic.  Thank you.

Sun, 04/21/2013 - 21:03 | 3482016 Seize Mars
Seize Mars's picture

Are you surprised? You are dealing with ACTUAL criminals.

They aren't afraid to murder 1/2 million Iraqi children. You think they're afraid to kill 20 in Connecticut?

You think they won't totally rewrite GDP to suit themselves?






Sun, 04/21/2013 - 23:55 | 3482565 Dull Care
Dull Care's picture

Don't forget the Oklahoma City bombing. They were definitely involved in that one as well.

Sun, 04/21/2013 - 21:08 | 3482027 shermacman
shermacman's picture

My intangible is bigger than yours.

Sun, 04/21/2013 - 21:42 | 3482159 WmMcK
WmMcK's picture

You can't touch that - M.C. Hammer

Mon, 04/22/2013 - 02:06 | 3482747 Spinelli
Spinelli's picture

Not if i change how i measue mine! HAA - got ya

Sun, 04/21/2013 - 21:11 | 3482031 fuu
fuu's picture

They should just add 10 trillion, that would give them a lot more room to borrow!

Sun, 04/21/2013 - 21:09 | 3482032 surf0766
surf0766's picture

Most people will believe this... until they are given their pink slip. A family friend thought the economy was in expansion.. Until he was given his walking papers from his company.

Sun, 04/21/2013 - 21:11 | 3482036 Schmuck Raker
Schmuck Raker's picture

To really keep debt/GDP manageable, lets add in Derivatives(gross).

That ought to give the Prez something to crow about.

Sun, 04/21/2013 - 21:11 | 3482037 Yen Cross
Yen Cross's picture

 I'll catch all you inquisitive, 'Know alls" in london 0:08:00 gmt. (daylights savings time :-))

Sun, 04/21/2013 - 21:10 | 3482039 freedogger
freedogger's picture

Unfortunately, you can't eat intangibles.

Sun, 04/21/2013 - 21:12 | 3482043 toys for tits
toys for tits's picture

So if they're rewriting history back to 1929 - which is ominous in and of itself - doesn't that mean that all of the past pronouncements were actually lower than they stated?

Sun, 04/21/2013 - 23:45 | 3482534 TruthBeforeAll
TruthBeforeAll's picture

Yes. And the crash of '29 never happened. At least to the important people.

Sun, 04/21/2013 - 21:14 | 3482048 tip e. canoe
tip e. canoe's picture

now everyone should understand why Chris Dudd was put in to run the MPAA.

Sun, 04/21/2013 - 21:15 | 3482058 wisefool
wisefool's picture

Anybody who is a "freind of mozillo" should be in pictures. have you seen that dudes rugged jaw, sharp suits, and perfect tan?

Sun, 04/21/2013 - 23:40 | 3482527 Aurora Ex Machina
Aurora Ex Machina's picture

And CISPA removes any potential legal dams against this 'new' part of GDP being brought into the fold. Now, if only Hollywood Accounting actually produced tax revenues...

Tangent (although you should spot the link, if we're referencing complete data control) // Tonight, thinking on New Songdo; the IMF re-structuring that drove it forward, NY money involvement and also the UN's Green Climate Fund.

It's an interesting mix, and certainly one of the more positive facets of the competing four visions of the future. (However, MIT should be ashamed at parts of its Master's program; papers were weakly written.)

The question remains: will businesses move there, and how will South Koreans deal with the inorganic / ordered nature of it. Not sure the casino / entertainment sector isn't going to be blood in the water for a different set of immigrants, however...

Mon, 04/22/2013 - 10:38 | 3483663 tip e. canoe
tip e. canoe's picture

how lovely, they built it right on the tidal flats.

silly humans, no understanding of the rhythms of their mother.  either that or just obstinate rebelliousness.

time to grow up, no?

Sun, 04/21/2013 - 21:14 | 3482049 holdbuysell
holdbuysell's picture

This is fall-off-the-chair funny.

Desperate times call for desperate measures, I guess.

If this is only just beginning, may CISPA not turn the lights out on sharing such entertainment.

Sun, 04/21/2013 - 21:14 | 3482050 ebworthen
ebworthen's picture

More intangible lies?

Damn, just going to have to buy more tangible Gold and Silver.

Sun, 04/21/2013 - 22:04 | 3482256 Go Tribe
Go Tribe's picture

They'll drive down the price of tangibles to nothing. What's real becomes unreal, what's unreal becomes real.

Sun, 04/21/2013 - 22:15 | 3482303 toys for tits
toys for tits's picture

That's only about $6B a year, not adjusted for inflation, of course.

Sun, 04/21/2013 - 21:15 | 3482053 Curt W
Curt W's picture

Price discovery of Hopium.

Sun, 04/21/2013 - 21:16 | 3482057 1C3-N1N3
1C3-N1N3's picture


And there are still those who think the Fed will ever unwind...

And there are those who think that the USD is the only currency that the FED will ever issue.

Sun, 04/21/2013 - 21:19 | 3482073 EagleProjets
EagleProjets's picture

I think we need a new ETF fund. Just a idea. Ultra Mega Long positon on the % of intangible asset / GDP (base on the 2013 calculation). What do you think ???

Sun, 04/21/2013 - 21:21 | 3482086 Fuku Ben
Fuku Ben's picture

Intangible. Isn't that another word for derivative?

Sun, 04/21/2013 - 21:36 | 3482140 Lux Fiat
Lux Fiat's picture

"Make believe" is what comes to mind...only we're not in Disneyland.

Sun, 04/21/2013 - 21:21 | 3482088 Peter Pan
Peter Pan's picture

The USA has in recent times truly amassed some incredible levels of intangibles including bullshit, derivatives, goodwill generated in Iraq and Afghanistan, as well as amongst its own people judging from the purchases of arms and ammunition.

The USA needs to wake up to itself before it loses total control of the situation which in turn will make the world a very slippery and dangerous place to live and operate.

I want to believe in a better USA but the USA has to find a better way to operate as well.

Sun, 04/21/2013 - 21:26 | 3482100 Kirk2NCC1701
Kirk2NCC1701's picture

If only my bank account or the Deliverables to my customers could get an intangible bump.

Sun, 04/21/2013 - 21:28 | 3482109 Hongcha
Hongcha's picture

You is bittah people.

If you are short you should have known better.  If you have no position, why are you whinging and railing about this ?  Of course they are not going to let it go, it's the only thing The One can point to in his SOTUA.

It's toxic and a bad habit, waiting for the train to leave the tracks.

It is easy to manip the DOW when you can call Blankfein, Dimon et al. to a meeting at the WH and tell them where the ball is.

I am the most tedious of posters; a reformed shorter.  I was like you.  Now I don't short any more and feel fine when farcical fiats voluntus emanate from on high.

Do NOT follow this link or you will be banned from the site!