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The US Economy Is "Off The Lows"

Submitted by Tyler Durden on 05/30/2013 09:39 -0400

In the case of the five year simple moving average of US real GDP growth, or said otherwise - true economic growth (or technically credit expansion) - all one can say is "off the lows."

A quick point: since GDP is really consolidated financial liabilities, which includes the deposit-to-reserve liability match courtesy of the Fed ...

... do not, repeat DO NOT, exclude the $2.5 trillion in credit injected into the $16 trillion US economy by Ben Bernanke, or suddenly one may grasp just how 15% of US GDP is entirely thanks to the Fed.

h/t @Not_Jim_Cramer

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Thu, 05/30/2013 - 09:42 | 3610178 sudzee

Green shoots.

Thu, 05/30/2013 - 09:44 | 3610190 bank guy in Brussels

Scotty of Star Trek

« I'm givin' her all she's got ! »

http://static.neatoshop.com/images/product/5/1605/Im-Giving-Her-All-Shes...

Thu, 05/30/2013 - 11:16 | 3610530 spine001

Captain Kirk, "No matter increase power Scotty.." Scotty: "But captain, she is going to blow..." Kirk: "You heard it, increase power!"

QE to infinity and beyond, to go where no central banker has gone before...

Thu, 05/30/2013 - 11:40 | 3610603 Groundhog Day

"this ship can't sink!"

"the ship is made of iron and steel, it is a mathematical certainty the titanic will flounder, and be at the bottom of the atlantic"

Titanic

Thu, 05/30/2013 - 09:45 | 3610196 ZippyBananaPants

I had some green shoots in my pants after the 'big salad' at Western Sizzler yesterday!

Thu, 05/30/2013 - 09:56 | 3610238 Sudden Debt

Yeah.... clearly we're on the track to recovery like we've been for the last 5 years.

Thu, 05/30/2013 - 10:04 | 3610274 Stuck on Zero

I see a light at the end of the tunnel.

Thu, 05/30/2013 - 10:16 | 3610312 Skin666

It's the fucking train, man!

RUN

Thu, 05/30/2013 - 09:44 | 3610186 orangegeek

Bank liabilities up. GDP up. Quite the strategy.

Thu, 05/30/2013 - 09:49 | 3610210 LawsofPhysics

Exactly. No real value being added as more and more of the GDP is simply pushing bullshit paper promises around. The paper promises and liabilities are growing exponentially, the value of the underlying assets/collateral, not so much.

Thu, 05/30/2013 - 10:38 | 3610382 Crash Overide

What happens when you ask them to make good on their promise?

Thu, 05/30/2013 - 10:40 | 3610393 ATM

DRONE STRIKE IN 3...2...1....

Thu, 05/30/2013 - 10:59 | 3610459 matrix2012

Yet at least some can have the chest-thumping illusion claiming the #1 economy in this planet having that many trillions GDP... however absurd it is! lol

Thu, 05/30/2013 - 17:23 | 3611594 Spigot

Most Excellent: paper movement = GDP. Why not!? How intensely cleaver of them. We could have a Quadrillion $$$ economy just by moving paper back and forth on a desktop, with robo-signatures of course!

This is how we get GDP growth even with dropping energy consumption, constantly declining work force participation, droping average hourly wages, etc.

A completely frictionless, supply/demand free boost in wealth.

(puke)

Thu, 05/30/2013 - 09:44 | 3610188 Temporalist

Maria Bartiromo will be so thrilled!

Thu, 05/30/2013 - 09:44 | 3610191 francis_sawyer

Things are always darkest in the moment just before they go pitch black...

Thu, 05/30/2013 - 09:46 | 3610200 robochess

Hed, hed, hee........ha, ha, haaa........ LOL LOL LOL ...........Arrrrrrrrrrrrrrrggggggggggghhhhhhhhhhh!

Thu, 05/30/2013 - 09:54 | 3610218 francis_sawyer

Well ~ looking at that chart, at least it's now easy to see why in the mid 60's... Jumpin Jack Flash, it was a gas, gas, gas...

~~~

The "movie", which came out in 1986, appears to have been the right shoulder failure...

So I guess we can blame it all on Whoobi Goldberg...

Thu, 05/30/2013 - 09:56 | 3610239 Dewey Cheatum Howe

I guess Bennie and the FEDS were singing I see red traditional bank liabilities and want to paint them black.

Thu, 05/30/2013 - 10:21 | 3610325 greatbeard

Michael, is that you, bro?

Thu, 05/30/2013 - 09:45 | 3610193 de3de8

But we're in recovery!

Thu, 05/30/2013 - 09:45 | 3610195 q99x2

Holy hootenanny.looks like opossum soup and tators for the rest of the year.

Thu, 05/30/2013 - 09:57 | 3610244 Pure Evil

Your lucky, the rest of us get to eat insects as recommended by the UN.

Thu, 05/30/2013 - 09:49 | 3610212 DaveyJones

off the lows

or on the meds?

Thu, 05/30/2013 - 10:39 | 3610384 tip e. canoe

is there a difference these days?

Thu, 05/30/2013 - 09:50 | 3610214 venturen

A market of extend and pretend.

Thu, 05/30/2013 - 09:50 | 3610215 fonzannoon

never discount this markets ability to go moar retardererer

Thu, 05/30/2013 - 09:51 | 3610216 NoDebt

Yeah, that's pretty much what it feels like out here on main street. Dead fish hit the deck in 08' and hasn't moved since.

Thu, 05/30/2013 - 09:52 | 3610219 thismarketisrigged

is anyone watching the market on level 2?

the averages have just shot up on what some seems like absolutely no volume. and on absolutely no news.

it just shot up 70 pts dow, 10 s&p and 25 nasdaq.

guess it makes sense.

gdp lower then expected, jobless claims rise, all is good

Thu, 05/30/2013 - 09:54 | 3610227 fonzannoon

Down the hall from my office is a full blown chop shop, We listen to these guys make cold calls. 1990's cold calls...

"I trust you have a pen handy!"

"If I were doing any better i'd be laying on a beach with supermodels!!

Anyway, what fascinates us is, they land accounts. There are still suckers being born at a very rapid pace.

Thu, 05/30/2013 - 10:01 | 3610255 the not so migh...

thats law of averages, 100 power calls you always get one.

Thu, 05/30/2013 - 10:24 | 3610335 fonzannoon

They are well over that ratio.

Thu, 05/30/2013 - 09:55 | 3610229 doomandbloom

did you buy the dip?

Thu, 05/30/2013 - 10:55 | 3610446 Pure Evil

I double dipped the dip.

For proof, see the first chart and the double " V " all the way to the right.

That's me spreading green shoots to help with our economic recovery.

If you look at it long enough it kinda looks like a set of pointy hooters.

Thu, 05/30/2013 - 09:55 | 3610231 Glass Seagull

Poppin' bahttles

Flippin' cahndahs

Wreckin' Mahzdahs

Eatin' lahbstahs

Thu, 05/30/2013 - 10:02 | 3610261 monopoly

Off the lows. Gotta love it. And speaking of off the lows so is gold and silver. If I were short now I think I may need a change of clothes. But the bears did have a great run. Time to ring the register and go long all.

Thu, 05/30/2013 - 10:14 | 3610305 SheepDog-One

OMG! FED success at last!! YES!

Thu, 05/30/2013 - 10:14 | 3610306 Yen Cross

The $ is getting taken to the woodshed, and the markets are up. Need moar POMO>

Thu, 05/30/2013 - 10:26 | 3610342 rwe2late

Of course, the GDP is calculated using an officially very exact unquestionably precise measure of inflation.

The "consumption" of financial "services" doubtless helps the GDP calculation also.

By the way,

how is the purchase of government IOUs with newly printed fiat in order to finance the government deficit counted? Is that "investment"?

Just asking.

Thu, 05/30/2013 - 10:40 | 3610391 Winston Churchill

Prolly gets counted twice in that GDP calc.
When created, and when spent.
Fucked is not adequate to the situation.
The deflationary collapse has only been delayed.

Thu, 05/30/2013 - 10:38 | 3610381 docj