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Main Reasons For "Upward Revised" Q3 Personal Spending: Healthcare And Gasoline
Earlier today, the Bureau of Economic Analysis surprised everyone by announcing a final Q3 GDP growth of 4.1% compared to 3.6% in the first revision (and 2.8% originally), driven almost entirely by the bounce in Personal Consumption which rose 2.0% compared to estimates of 1.4%. As a result many are wondering just where this "revised" consumption came from. The answer is below: of the $15 billion revised increase in annualized spending, 60% was for healthcare, and another 27% was due to purchases of gasoline. The third largest upward revision: recreation services. On the flip side, the biggest revision detractors: transportation services and housing and utilities.
In other words, the BEA thought long and hard what it could revise and decided on the following: in Q3 the US economy was revised to the strongest since 2011 because Americans, it would appear, were gassing up more to visit (and pay) their doctor, and then going to the movies.
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Where is the booze category? I've been trying to help the GDP numbers in my own way.
On a more serious note, anyone else think it's kind of funny that they back out fuel when they calculate inflation, but count the living fuck out of it when they calculate GDP?
That's worth a +1 revised up to +2.
Recreation? I knew hookers were busy but this is freedickulous
And here I thought it was all the guns & ammo (and booze) we were buying!
That falls under recreation.
The real reason for Obamacare = to artificially increase GDP by increasing healthcare costs
The US has become a MASSIVE, MASSIVE clusterfuck
That's only for the people that have HC and have to endure the rising premiums, deductibles and copays. For those that had their policy cancelled, now they don't have to pay the fine, plus they have all that additional disposable income to spend on icrap. WINNING! Watch that GDP soar in 2013Q4 and 2014Q1.
Giant sucking sound. http://www.reuters.com/article/2013/12/20/us-prostitution-idUSBRE9BJ0U320131220
Increased gas consumption translates to increased tax revenue, now go congress - raise the gas tax from 18 to 34 cents a gallon.
Works the same way with an increase to minimum wage.
And the payoff/kickback category?
The price of hookers has been going up lately, true.....
Their wages go up the more they go down...
next time you go to the massage parlor....ask for the "bernake''.......
If they don't know what the "bernake" is, just explain in layman terms. "Gimme a giant dildo up the ass".
Mexican Donkey Porn is at an all time high for pesos. The humanity.....
It was called double counting when I learned my accounting .
Garbage=garbage out.
You make an interesting observation. If gasoline is included in GDP but not in inflation calculations, does that mean gasoline is excluded from the GDP Deflator?
Recreational services.... You know hookers and booze
"anyone else think it's kind of funny that they back out fuel when they calculate inflation, but count the living fuck out of it when they calculate GDP?"
Haha, I just had that same thought after reading this article, and posted it. Our Gov is so funny I keep forgetting to laugh.
I'm glad they raised the standards that indicate the threshold of high blood pressure too. That was just in time or I'd of probably blown a gasket.
Hells yea, that's how we start rebuilding.
Strength in numbers!
Those who can't afford to self-medicate will barely be able to afford to self-immolate.
Bizarre. Looks like a recession has been taken out of the calculations forever to me by central planning. If these numbers are to be believed why is it that we still have still a 7% unemployment announced number and the labor participation rate at an all time low or high depending how you look at it?
Because the numbers are not to be believed maybe?
The recession in Oceana is going extremely well with our boys really socking it to those Oceanic wags! Do you part to support the effort, concerve your rations of chocolate and cooking oil.
"of the $15 billion revised increase in annualized spending, 60% was for healthcare, and another 27% was due to purchases of gasoline"
Annualized spending? What does annualized spending have to do with 3rd quarter spending? Where is there any 60% increase in healthcare spending?
<Where is there any 60% increase in healthcare spending?>
Obamacare, that's where.
The US govt annualizes all of its economic statistics. Don't know why. So when they say "GDP rose by 4%" what they mean is "GDP rose by 1% in the past quarter and we're extrapolating that out to four quarters"
Not extrapolating, it is to make the figures look bigger, then put 'annualised' in microscopic writing
It's the US Govt. anal-izes all of its economic statistics. Don't know why everyone misspells the word.
definition: anal-ize; vb; 1) to turn everything to shit or bullshit; 2) to ass fuck.
"The third largest upward revision: recreation services."
????????
WTF is recreating?
Hookers and cocaine. Wall st had a blast this quarter and things got a little crazy.
That figure should tank in January when 50-100 million have no health insurance to pay for, and resort to WebMD for treatment.
Your analysis is correct, but your timing may be suspect. Don't expect that 50-100 million hit to employer health plans to happen until October 2014. January will still be fun though, because the 0zer0care sticker shock that we are all experiencing will be 0zer0care WALLET shock after 1/1/2014.
wow baffle with BS turned into a competition with China on steroids and bedtime growth stories..I guess Fed has no choice but to proceed with more manipulation to end QE or they will end up owning the entire bond market..
Wow do I feel stupid thinking that paying more for less would be bad for the economy and here it is in black in white that happy times are hear again because of ObamaCare.
More employers are pushing higher medical costs onto their employees-HSA are standard now. With no increase in wages, I spend more on seeing the doctor but less on discretionary spending. I pay around $250 more a month for medical insurance than I did 4 years ago along with another $3000 into an HSA for expenses that in the past my policy would have covered.
I expect with consumers paying more out of pocket cost for medical care that GDP numbers will show increase in spending when in reality it is just of transfer of cost from business to worker and there is no net pickup in consumer spending...
Bernanke had access to this number 48 hrs ago. That's why he tapered.
I just want to ride this out until the collapse, I want some easy ass job that pays shit so I can just get by, and pay as little in taxes as possible. I don't want to contribute to the american society in any meaningful way. I just want to turn my brain off like the rest of the fucking retards in this patetic country. I'm sick and tired of caring about the USA. I don't give a fuck anymore. It does not pay to think in America anymore - it pays to be a leech.
I stopped caring when Nixon got elected. That was a few years ago.
slaves are comfortably numb.
So the gov calculates spending on oil for the GDP number which they want to pump up.
Takes it out of the inflation calculation. This is not distortion or anything...
Higher GDP despite even lower Government Spending than anticipated. Surprising that more people don't wake up and realize that the government doesn't have a magical multiplier when it comes to stimulus
http://dhnnews.com/the-us-economy-grew-even-more-in-the-third-quarter-than-we-thought/
bullshit
The Fed still in crisis mode over the economy. ZIRP until economy normalizes and adding $75 billion extra liquidity to the market every month.
The Fed does not believe the 4.1% 3rd quater growth, so they admit Obama;s administration is making up economic numbers to serve their political interest.
Obama's gots it down! Triple health care costs and we are rocking an 80's GDP baby!
GDP for Q3, 2007 marked 4.9% on the third estimate so this really doesn't mean much. This was followed by a weak Q4 GDP estimate, a later revision down for Q3 and the rest is history. The wheels are going to fall off again and worse this time, just a matter of when, not if.
http://useconomy.about.com/b/2007/12/20/final-gdp-remains-at-a-still-astounding-49.htm