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US Economy Shrank By 1% In The First Quarter: First Contraction Since 2011

Tyler Durden's picture




 

Weather 1 - Quantitative Easing 0.

Spot on the chart below just how high the culmination of over $1 trillion in QE3 proceeds "pushed" the US economy.

Joking aside, while the realization that nobody can fight the Fed except a cold weather front, is quite profound, in the first quarter GDP "grew" by a revised -1.0%, down from the +0.1% first estimate, and well below the -0.5%  expected, confirming that while economists may suck as economists, they are absolutely horrible as weathermen. This was the worst print since the -1.3% recorded in Q1 2011.

Bottom line: for whatever reason, in Q1 the US economy contracted not only for the first time in three years, but at the fastest pace since Q1 of 2011. It probably snowed then too.

The breakdown by components is as follows:

Some highlights:

  • Personal consumption was largely unchanged at 2.09% from 2.04% in the first estimate and down from 2.22% in Q4. Considering the US consumer savings rate has tumbled to post crisis lows at the end of Q1, don't expect much upside from this number.
  • Fixed investment also was largely unchanged, subtracting another 0.36% from growth, a little less than the -0.44% in the first estimate and well below the 0.43% contribution in Q4.
  • Net trade, or the combination of exports and imports, declined from
    -0.83% to -0.95%, far below the positive boost of 0.99% in Q4.
  • The biggest hit was in the change in private inventories, which tumbled from -0.57% in the first revision to a whopping -1.62%: the biggest contraction in the series since the revised -2.0% print recorded in Q4 2012.
  • Finally, government subtracted another -0.15% from Q1 growth, more than the -0.09% initially expected.

So there you have the priced to perfection New Normal growth (inclusive of "harsh weather", which obviously has to be excluded for non-GAAP GDP purposes), which also now means that in the rest of the year quarterly GDP miraculously has to grow at just shy of 5% in the second half for the Fed to hit the "central tendency" target of 2.8%-3.0%.

And now we await for stocks to soar on this latest empirical proof that central planning does not work for anyone but the 1%.

 

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Thu, 05/29/2014 - 08:50 | 4805047 orangegeek
orangegeek's picture

Giddy Up!!!!!

 

Get the Orville Redenbacher and let's watch the markets go higher!!!!!

Thu, 05/29/2014 - 08:51 | 4805050 CH1
CH1's picture

Quick, break some windows!!!

Thu, 05/29/2014 - 08:53 | 4805061 Headbanger
Headbanger's picture

Ban weather!

Thu, 05/29/2014 - 08:56 | 4805073 Pool Shark
Thu, 05/29/2014 - 08:59 | 4805084 THX 1178
THX 1178's picture

Next up "Belgium" puts through 140 billion in buy orders on the S&P.

Thu, 05/29/2014 - 09:14 | 4805148 Chris Jusset
Chris Jusset's picture

Time to lower interest rates!  Oh, wait ....

Thu, 05/29/2014 - 09:16 | 4805160 clooney_art
clooney_art's picture

Begs MOAR QE !

Thu, 05/29/2014 - 09:19 | 4805178 max2205
max2205's picture

Get to work Federal Government

Thu, 05/29/2014 - 09:21 | 4805198 Tabarnaque
Tabarnaque's picture

Stagflation bitchezzzz!

Thu, 05/29/2014 - 09:51 | 4805340 MillionDollarBonus_
MillionDollarBonus_'s picture

Look at these zerohedge goblins cheer with glee as our economy falters. May I remind the children on this blog that this is reality and it is very serious. Our government has failed to invest enough in our economy and we as the citizens bare responsibility for that. The mature people are trying to figure out where our government can invest in order to help out economy recover from this setback, while immature, narcissistic ZH day traders gloat over being “right”. 

Thu, 05/29/2014 - 09:53 | 4805349 TheFourthStooge-ing
TheFourthStooge-ing's picture

What we need right now are trained and accredited experts!

Thu, 05/29/2014 - 09:56 | 4805364 eatthebanksters
eatthebanksters's picture

It's all because of bad weather...in Syria, the Ukraine, Afghanistan.....

Thu, 05/29/2014 - 11:06 | 4805649 linniepar
linniepar's picture

QE is criminal. Prosecute the perps and quit central planning.  This is deliberate. 

Thu, 05/29/2014 - 11:50 | 4805814 DirtyWilly
DirtyWilly's picture

The reason ZH'ers cheer this isn't because they think they're right.  They all think the same bullshit that once the economy goes into super depression gold and guns will be worth millions.  One ounce of gold will buy them the entire state of Rhode Island.  This is why they're so hostile to other asset classes, we all know it.  It's never going to happen "stackers", stop listening to Schiff and Jickards, gold is not going to be worth $100,000's.  And the irony here, even if it was all you did was preserve your wealth jackasses!  lol  I'm going to enjoy all of you being "right" about the economy, because the other half of your formula is completely wrong, good luck.

Thu, 05/29/2014 - 12:03 | 4805866 dontgoforit
dontgoforit's picture

If loving the QE is wrong, I don't want to be right.

Fri, 05/30/2014 - 12:02 | 4809710 papaclop
papaclop's picture

Don't have any gold huh? You'll probably be all right with cash. You may want to pick up a wheelbarrow or two. Good luck,big guy.

Thu, 05/29/2014 - 10:14 | 4805447 novictim
novictim's picture

With degrees and everything!

Thu, 05/29/2014 - 10:02 | 4805393 Tabarnaque
Tabarnaque's picture

There we go. So according to MDB we need even bigger government to spend more money that we don't have. Oh yeah, that reminds me that the reason why durable goods orders were up yesterday is because the war mongers in wdc just bought another $18 billons worth of nuclear submarines! I love how this destructive government invests tax payers money. This is really a great advance for society. I mean thinks about all the good things you can do with 10 nuclear submarines!!! I guess that this is what MDB calls development!

http://davidstockmanscontracorner.com/pouring-keynesian-waste-into-davy-jones-locker-yesterdays-18-billion-upside-surprise/

Thu, 05/29/2014 - 10:23 | 4805485 Dr. Richard Head
Dr. Richard Head's picture

I can compare the Federal Government with a spendthrift wife who truly believes she saved money by purchasing 2 dresses at $75 instead of 1 dress at $50, because the second dress was half off.  Fucking instanity. 

Is it really cheaper to keep her?

Thu, 05/29/2014 - 11:16 | 4805705 stonecoldbrokei...
stonecoldbrokeinthemiddleofthewinter's picture

One consideration is her taste in dresses....

Thu, 05/29/2014 - 10:13 | 4805437 novictim
novictim's picture

Million, you assume that the asshats here on ZeroHedge are US citizens. More than a few of the contributors are Russians.

Thu, 05/29/2014 - 10:13 | 4805438 novictim
novictim's picture

Million, you assume that the asshats here on ZeroHedge are US citizens. More than a few of the contributors are Russians.

Thu, 05/29/2014 - 10:32 | 4805514 venturen
venturen's picture

MDB you are such a moron! The government has failed to invest? Is that theory on why all socialist countries fail? The economy is going down...because the invest too many overpaid workers and too many projects while taking too much of the people's money! I guess you can't understand anything than that troll's Krugman...NYT communist manifesto of spend more regardless of merit! Hey can we build another field of wind turbines or solar panels that operate 25% of the time. Or maybe you can suggest another soon to fail battery or solar panel company? 

Thu, 05/29/2014 - 10:40 | 4805541 fingulas
fingulas's picture

You are the most consistent troll.  My hat's off to being able to provoke response after response.  LOL.

Thu, 05/29/2014 - 12:17 | 4805915 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

No kidding.  Over and over again he fools you people.  

Thu, 05/29/2014 - 10:58 | 4805608 Bernoulli
Bernoulli's picture

MDB: you crack me up.

indeed, it's very serious.

But who exactly do you claim "bares" the responsibility for that?!?! "WE AS CITIZENS"?!?!? wtf.

you can't be real. I think you are an algo. An algo that was programmed to never use the word "bear". not even as a verb.

Thu, 05/29/2014 - 11:09 | 4805666 Anybody
Anybody's picture

I think he baring it all on his web site.

Thu, 05/29/2014 - 11:03 | 4805629 BrigstockBoy
BrigstockBoy's picture

Were you "bare" when you typed this MDB? Mind your naked shorts! ;)

Thu, 05/29/2014 - 11:11 | 4805670 dontgoforit
dontgoforit's picture

MDB, are you a Bildeberger?  No, well, maybe a Hamburger?

Thu, 05/29/2014 - 11:09 | 4805665 Singelguy
Singelguy's picture

MDB, you fail to appreciate that the corruption, fraud, and paralysis in Washington is so bad that it can no longer be fixed. The only way this is going to be fixed is with another major crisis. That seems to be the only thing that gets their asses in gear. If you have another viable solution, Let's hear it. I would be the first one to support it. However, with half the population on some kind of government assistance, the politicians seeking re-election in November will only vote to spend more money they don't have. The dollar needs to crash to wake those idiots up. More debt, more regulations, and higher taxes will only make it worse. Just look at France.

Thu, 05/29/2014 - 11:22 | 4805729 Blano
Blano's picture

You made me laugh twice this time:

1) just 'cause you're you, and

2) bare

Thu, 05/29/2014 - 11:56 | 4805842 john39
john39's picture

he had me at zh goblins...

Thu, 05/29/2014 - 11:47 | 4805809 Puncher75
Puncher75's picture

Until the all knowing "government" can control and "invest" in the weather, I guess we're all screwed. 

Thu, 05/29/2014 - 12:22 | 4805944 Roger Shermanator
Roger Shermanator's picture

Newsfash: The government can't "invest" in anything.  This would imply that profit and loss calculations are taken into account to direct and allocate capital, instead of crony political connections, size of campaign contributions, fraternity alma maters, etc...

Thu, 05/29/2014 - 10:09 | 4805423 novictim
novictim's picture

Liquidity Trap, Homey

Thu, 05/29/2014 - 11:37 | 4805776 pelican
pelican's picture

You are silly, everything in DC and NY are super great.  The coke and hookers are a great buy.  After all, NY and DC are the US.

Thu, 05/29/2014 - 09:20 | 4805191 GetZeeGold
GetZeeGold's picture

 

 

The 29.5 hr/wk job economy is just starting to get rolling.

 

Is this going to be the summer of recovery?

Thu, 05/29/2014 - 10:15 | 4805451 CheapBastard
CheapBastard's picture

Obamacare tax bill + postal rate increase + internet sales tax + Snowden leak and plunging of IT companies + unemployment rate = some serious Main Street slowdown

Thu, 05/29/2014 - 10:21 | 4805474 TheRideNeverEnds
TheRideNeverEnds's picture

yes, any day now; buy the dip!

Thu, 05/29/2014 - 12:37 | 4806012 SDShack
SDShack's picture

No, it's Recovery Summer 6.0 since 2.0, 3.0, 4.0, and 5.0 all failed.

Thu, 05/29/2014 - 09:17 | 4805168 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Screw it! Let's go full libtard. TARP, GM, cash for clunkers times 10!!!

Thu, 05/29/2014 - 09:35 | 4805275 Chris Jusset
Chris Jusset's picture

Great idea!  Time for TARP II .... CASH-4-CLUNKERS II ... OBAMA STIMULUS II ....

Thu, 05/29/2014 - 10:05 | 4805408 icanhasbailout
icanhasbailout's picture

I'm never going to beat my Obamacare thesis-validation-in-24-hours mark, but 9 days ain't bad either. http://thebullelephant.com/negative-interest-rates-perpetuate-depression/

Thu, 05/29/2014 - 09:20 | 4805183 Save_America1st
Save_America1st's picture

Too much HAARP?  Not enough HAARP?  I'm sure once they master the weather modification system paired with the correct amount of Trillions in fiat shit paper then everything will be perfect in the world and we'll all be saved by the master minds of central economic planning and weather control. 

Heyyyyyyyyyyyy, Wow....new government agency right there, ay??? 

The Bureau of Central Economics and Weather Control.  They can merge NOAA with the IRS or some psycho bullshit.

Their Orwellian slogan will be:  Weather = Taxes

 

Thu, 05/29/2014 - 09:45 | 4805314 Non Passaran
Non Passaran's picture

HAARP was always such a bullshit conspiracy story.
And now they're shutting it down. That must be depressing.

http://rt.com/news/161672-haarp-closure-weather-experiments/

Thu, 05/29/2014 - 10:25 | 4805486 Dr. Richard Head
Dr. Richard Head's picture

So wait...if it was a conspiracy theory and didn't exists, then how they hell could it be shut down when it never existed in the first place.  You argue with the logic of a five year old girl.

Thu, 05/29/2014 - 09:01 | 4805089 SMG
SMG's picture

This means they can't ever stop the QE's, which means  bye bye dollar as a reserve currency. Oh boy these next few years are gonna suck.

Thu, 05/29/2014 - 09:07 | 4805117 duo
duo's picture

The standard of living of the middle class can only be increased with true economic growth (inflation adjusted).  Our economy is about 30% smaller than it was in 2007.  A stagnant economy causes increased wealth concentration, as rentier wealth extraction grows while everything else shrinks.

Long story short, begin the countdown to a modern day Bastille.

Thu, 05/29/2014 - 09:14 | 4805150 cossack55
cossack55's picture

Cool.  Go long knitting needles.

Thu, 05/29/2014 - 09:17 | 4805165 Shizzmoney
Shizzmoney's picture

I would say, "long guillotines" but because we are so distracted in America, I now say, "long LOLcats"

Thu, 05/29/2014 - 10:26 | 4805493 Dr. Richard Head
Dr. Richard Head's picture

I bet the government could increase sales of debt if they commissioned the Kardashian girls to wear string bikinis and promote buying Uncle Sam's debt on the idiot box.

Thu, 05/29/2014 - 11:02 | 4805627 Bernoulli
Bernoulli's picture

and canned food.

Thu, 05/29/2014 - 11:14 | 4805694 dontgoforit
dontgoforit's picture

I think most Americans are already long on guns & ammo (still can't find any decent 22lr copper-clad around).

Thu, 05/29/2014 - 11:28 | 4805751 Blano
Blano's picture

Not most, just the tiny minority who understands there's no such thing as too much re: guns and ammo, especially ammo.

Thu, 05/29/2014 - 09:18 | 4805169 yogibear
yogibear's picture

The Federal Reserve wants a slow controlled dollar demise and subtle inflation.

They will panic and close banks (bankster panic holiday) and cease transactions when the dollar comes apart suddenly.

 

Thu, 05/29/2014 - 09:35 | 4805270 overmedicatedun...
overmedicatedundersexed's picture

look one big fault of most on ZH is we want logic and data to determine outcomes...there is no data that is not corrupt, the logic of past decades is nullified by the elites need to project positive outcomes, simply put: lying.

you will go mad, applying logic and reason and any past investing expertise to these markets or MSM or .gov propaganda, moar is always less, less is moar, unemployed are redisignated as not looking for work...moar debt is income, moar stock and bond highs as the economy.

 

Thu, 05/29/2014 - 11:12 | 4805679 Al Capowned
Al Capowned's picture

 

"This means they can't ever stop the QE's, which means  bye bye dollar as a reserve currency. Oh boy these next few years are gonna suck".

http://renegadeinvestor.co.uk/is-the-feds-taper-about-to-reveal-more-clearly-than-ever-that-fiat-currencies-are-doomed/

Thu, 05/29/2014 - 11:39 | 4805779 pelican
pelican's picture

Don't worry... Obama is so intelligent, insightful and powerful, he will save us all. 

Thu, 05/29/2014 - 09:28 | 4805238 ptoemmes
ptoemmes's picture

No, declare WAR on Weather.  

Thu, 05/29/2014 - 08:53 | 4805062 svayambhu108
svayambhu108's picture

The system is unable to take negative feedback, the result is clear

 

Thu, 05/29/2014 - 08:58 | 4805083 eclectic syncretist
eclectic syncretist's picture

GDP doesn't matter to the Fed, as they believe that's the politician's job to take care of.  What matters more is that the big banks are losing money fast, and the best way to turn that around now will be to bring the markets down so that volatility and trading volumes go up.  This will drive the Fed to tighten the money supply until a correction occurs IMHO, although I am not short yet.

http://online.wsj.com/articles/banks-raise-caution-flag-on-trading-14012...

http://online.wsj.com/articles/big-profit-engines-for-banks-falter-14013...

Thu, 05/29/2014 - 09:59 | 4805383 johnconnor
johnconnor's picture

it is just the weather

Thu, 05/29/2014 - 08:52 | 4805054 youngman
youngman's picture

Good thing we are not going into another ice age.....

Thu, 05/29/2014 - 09:03 | 4805098 DaddyO
DaddyO's picture

http://coldsun.net/

This may be a good read for all those interested in global warming and solar cycles.

The author used NASA's data to arrive at a different conclusion in 2007, NASA has since revised their data to match this author's conclusions.

Kinda makes you go Hmmmm

DaddyO

Thu, 05/29/2014 - 10:28 | 4805497 Dr. Richard Head
Dr. Richard Head's picture

You silly man.  Surely people driving their cars around is WAYYYYYYY more powerful than that sun thing.  /sarc

Thu, 05/29/2014 - 08:52 | 4805055 fonzannoon
fonzannoon's picture

Good to see yields ticking higher on this news, because that makes sense.

Thu, 05/29/2014 - 09:00 | 4805074 NoDebt
NoDebt's picture

"Already priced in."

Now all we need is 3 straight quarters of 4.33% growth and we'll be at everyone's estimate of 3% for the full year.

Thu, 05/29/2014 - 08:59 | 4805086 fonzannoon
fonzannoon's picture

next stop 2.25

Thu, 05/29/2014 - 09:06 | 4805106 NoDebt
NoDebt's picture

Oh, it gets better than that!  To hit 2% full-year we need to do 3% every quarter for the rest of the year.  To hit 1% growth full-year we'd need to do +1.67% every quarter for the rest of the year.

I'm thinking two-oh or high-ones full year is not out of the question.

Thu, 05/29/2014 - 09:09 | 4805126 fonzannoon
fonzannoon's picture

Haha sorry I meant the 10yr. 

Thu, 05/29/2014 - 09:15 | 4805147 NoDebt
NoDebt's picture

Serves you right for throwing a % number in front of an economist without identifying it!  My brain goes straight to numbers like GDP, labor force participation, productivity gains, change in average hourly earnings and stuff like that.  

Thu, 05/29/2014 - 09:13 | 4805145 gatorengineer
gatorengineer's picture

you dont think that the fed will unload some of their excess inventory before then?

Thu, 05/29/2014 - 09:25 | 4805220 fonzannoon
fonzannoon's picture

I don't even know what is going on anymore. I actually think the fed will raise rates just out of the sheer act of fighting off the Japanese implosion that is currently underway, and I don't think that will work

Thu, 05/29/2014 - 08:52 | 4805056 dobermangang
dobermangang's picture

No need to worry.  Recovery Summer, version 6, will be here soon.

Thu, 05/29/2014 - 08:52 | 4805057 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Source? Contraction even after cooking the numbers? Even after all the government spending?

Quick! Fix those numbers now.

Thu, 05/29/2014 - 09:42 | 4805306 SokPOTUS
SokPOTUS's picture

Someone in the permanent government finally had it with Oblammy; so letting a little truth leak out to scuttle the 2014 election???

Thu, 05/29/2014 - 08:53 | 4805064 Stoploss
Stoploss's picture

But, but the unemployment number says all is well...

Initial claims have normalized..

 

And NOBODY has a fucking job worth a shit..

 

God Damn i love this country..

Thu, 05/29/2014 - 08:54 | 4805068 buzzsaw99
buzzsaw99's picture

Drainage! Drainage, Eli! Drained dry, you boy! If you have a milkshake and I have a milkshake and I have a straw and my straw reaches across the room and...

Thu, 05/29/2014 - 08:54 | 4805069 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

i feel like with this, snowden's interview (the fact that that was allowed to air by TPTB is nuts to me), putin's moves, china's moves etc etc, we are getting very dangerously close to something big.

Thu, 05/29/2014 - 08:55 | 4805070 lunaticfringe
lunaticfringe's picture

Imagine what the number would be before they gamed the input last year.

Thu, 05/29/2014 - 09:05 | 4805108 Global Hunter
Global Hunter's picture

scarey thing is if the official number is a decline of 1% GDP the real life number is probably closer to 10%? 

Not a good year to lease a new Porsche (for those that would be so inclined).

Thu, 05/29/2014 - 08:54 | 4805072 doomandbloom
doomandbloom's picture

Bloomberg and Reuters, both are saying, this is transitory ( like the weather) and that I should not worry and that they are already seeing an uptick in numbers going forward.

Thu, 05/29/2014 - 09:07 | 4805119 ShorTed
ShorTed's picture

hmm, not sure i trust them, what do the experts at CNBC think?

Thu, 05/29/2014 - 09:51 | 4805341 Bemused Observer
Bemused Observer's picture

CNBC...it's like those half-hour infommercials that run at 4 am. Only it goes on alllll daaaay...

Thu, 05/29/2014 - 08:58 | 4805075 elephant
elephant's picture

Does this mean there will be printing?

Thu, 05/29/2014 - 08:58 | 4805081 buzzsaw99
buzzsaw99's picture

yes, and it's bullish too

Thu, 05/29/2014 - 08:56 | 4805077 Kina
Kina's picture

Dont worry, just a little bit of inflation will fix it.

Thu, 05/29/2014 - 09:20 | 4805193 codecode
codecode's picture

minimum wage going up in Michigan... good times are coming...

Thu, 05/29/2014 - 11:11 | 4805673 Bernoulli
Bernoulli's picture

Inflation. Yes. And at the same time investors are pounding into 10 year treasuries.

Makes total sense...

Thu, 05/29/2014 - 08:57 | 4805078 orangegeek
orangegeek's picture

Many thanks goes out to the MSM - it's 900a Eastern time and still no coverage anywhere.

 

I guess the MSM's printers have run out of ink and need refill or their newsprint roll shipment is late.

 

Loving you Tyler!!!!!!!!!!!!!!!

Thu, 05/29/2014 - 08:57 | 4805080 Me.Grimlock
Me.Grimlock's picture

So long as there's no inflation, everything is ok.

 

Go back to bed... the baby is fine!!1

Thu, 05/29/2014 - 09:35 | 4805082 Millivanilli
Millivanilli's picture

MOAR STAWKS!

 

Meanwhile  Kissinger protege and former Treasury secretary, pencil dick extraordinaire ,TIMMAH GEETNER is peddling his book on how he saved the US and World economy.

 

I hope they drive pms down to the dirt.   The great print fest is on!

 

Bitchez, we are going mad max before this shit is over.

 

IN OTHER NEWS

 

(Reuters) - Tens of thousands of children unaccompanied by parents or relatives are flooding across the southern U.S. border illegally, forcing the Obama administration and Congress to grapple with both a humanitarian crisis and a budget dilemma.

  

An estimated 60,000 such children will pour into the United States this year, according to the administration, up from about 6,000 in 2011. Now, Washington is trying to figure out how to pay for their food, housing and transportation once they are taken into custody.

 

SI SE PEUDE!

Thu, 05/29/2014 - 09:02 | 4805096 Atomizer
Atomizer's picture

MSM will riddle economic sheep on plausible explanations. Work in progress...

Thu, 05/29/2014 - 09:03 | 4805099 OC Sure
OC Sure's picture

 "latest empirical proof that central planning does not work for anyone"

Central planning of what?

ZH has centralized planning; they manage their servers, networks, information, blogs, ads, etc. and work to produce a product that meets the demand of 10s of thousands of humans who visit here. ZH plans to work.

The tyranny of modern economics has centralized planning too; they manage their generations of lies and deception to steal from those who do productive work, like ZH. Tyranny plans to steal.

Thu, 05/29/2014 - 10:37 | 4805528 Tall Tom
Tall Tom's picture

The tyranny of modern economics has centralized planning too; they manage their generations of lies and deception to steal from those who do productive work, like ZH. Tyranny plans to steal.

 

I am not sure about the reason why that was junked. It seems that some are not reading.

Thu, 05/29/2014 - 10:50 | 4805588 OC Sure
OC Sure's picture

Thanks, Tall Tom. Yeah, my point is that productive businesses have centralized  planning and central bankers have centralized stealing.

Just speed readers, I guess. Otherwise, reply as to the reason it got junked.

Thu, 05/29/2014 - 09:08 | 4805104 Chupacabra-322
Chupacabra-322's picture

(WXIA) -- Atlanta Mayor Kasim Reed is among nearly 150 people invited to the 62nd annual Bilderberg conference, being held this year in Copenhagen, Denmark, from May 29 to June 1.

http://www.11alive.com/story/news/local/2014/05/28/reed-to-participate-i...

Incredible right? What used to be considered a made up "Conspiacy Theory" by Tin Foil wearing Craizies is now Conspiacy FACT.

The most Chilling aspect now is these exact same Bilderburg Megloamainicas are now operating out in the open for all the world to see.

Also, disturbing is how these Criminal Psycopaths / Sociopaths are making it seem or "Marketing" it along with the Criminal MSM as a Liegitimate organization.

The World IS watching & these World Meglomainocs should be scared, very, very scared.

Thu, 05/29/2014 - 09:04 | 4805105 california chrome
california chrome's picture

Bullish - futures up in premarket

Thu, 05/29/2014 - 09:20 | 4805190 atomp
atomp's picture

Yep, GDP dumps, futures RIP. WTF.

Thu, 05/29/2014 - 09:05 | 4805109 SheepDog-One
SheepDog-One's picture

LOOK at the chart! YAY! 1% contraction simply means all the more room to QE and up the numbers go again!

Thu, 05/29/2014 - 09:08 | 4805110 Q-Q-Q
Q-Q-Q's picture

Can we not put future weather liabilities into a bad bank and continuously pump the economy with sunshine..........oh hang on, we already doing that and everythings starting to wilt.

Thu, 05/29/2014 - 09:06 | 4805111 Baby Eating Dingo22
Baby Eating Dingo22's picture

Market going higher because EVERYONE knows it doesn't snow in July

Thu, 05/29/2014 - 09:05 | 4805112 ms8172
ms8172's picture

Can somebody tell me what the fuck?

The market is up every fuckin day, GOLD is smashed every fuckin day and we print a negative 1% GDP in first quarter.... over 50 insurgents are killed in Ukraine, Company revenues sucked balls and the 10 Year tresuries are going down.   WHAT THE FUCK IS UP WITH THIS EQUITIES MARKET? 

Thu, 05/29/2014 - 09:12 | 4805128 Millivanilli
Millivanilli's picture

Belgium is bucking the trend.   Their booming economy is allowing them to buy US treasuries hand over fist.  In fact, they are dumping all their gold from ill gotten colonialism to buy MOAR paper promises.

 

 

Thu, 05/29/2014 - 09:11 | 4805136 Tjeff1
Tjeff1's picture

POMO to MOMO

Thu, 05/29/2014 - 09:14 | 4805149 Bangin7GramRocks
Bangin7GramRocks's picture

What part of the markets are fully controlled by the Fed don't you understand. Burn the charts, fuck the historical trends. They control it all and can make the markets go up or down on a whim. That's all there is to know.

Thu, 05/29/2014 - 09:19 | 4805182 Everybodys All ...
Everybodys All American's picture

You know it's bad when even Goldman says the markets are broken.

Thu, 05/29/2014 - 09:09 | 4805130 FreeNewEnergy
FreeNewEnergy's picture

...and silver is under $19 again.

Dennis Gartman told me privately that I should buy silver in yen terms, then swap it for Facebook stock in Euros.

He also told me that unicorn shit tastes like skittles, so I believe him.

I know this is unrelated, but I just want the NSA to know I spent the last 20 minutes on the shitter, reading a Playboy interview with Quentin Tarrantino from...um, 2006? I didn't look at the pictures. Honest. That's where I was while I left the computer and TV on, so you can cancel that drone strike you fucking Nazis.

Thu, 05/29/2014 - 11:15 | 4805695 Bernoulli
Bernoulli's picture

You know Dennis Gartman?

Awesome.

Can you get me in touch with him?

Would love to get some advice where to invest.

Thu, 05/29/2014 - 09:09 | 4805131 the 300000000th...
the 300000000th percent's picture

I'm sure this number will be mysteriously revised soon to be in the green....... .0000000001% There fixed it with some simple manipulation, now we are full steam recovery ahead again.

Thu, 05/29/2014 - 09:10 | 4805134 Q-Q-Q
Q-Q-Q's picture

This is a 'fake it until you make it' economy with absolutely no foundation left.

Thu, 05/29/2014 - 09:12 | 4805137 dizzyfingers
dizzyfingers's picture

"except a cold weather front"

Executive Order regulating  "weather" next -- more Camelot.

Thu, 05/29/2014 - 09:15 | 4805152 asscannon101
asscannon101's picture

Its the fucking weather's fault

Its the fucking weather's fault

 

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Thu, 05/29/2014 - 09:16 | 4805153 Hubbs
Hubbs's picture

Well, finally a confirmation of a prediction by John Williams of www.ShadowStats.com as seen Recently on Greg Hunter's USAwatchdog blog.

Thu, 05/29/2014 - 09:31 | 4805254 the not so migh...
the not so mighty maximiza's picture

he did call it

Thu, 05/29/2014 - 09:15 | 4805156 Shizzmoney
Shizzmoney's picture

Thank god for war profiteering, otherwise the US would be truly screwed!

When in doubt, blow it up.

Thu, 05/29/2014 - 09:15 | 4805157 trillion_dollar...
trillion_dollar_deficit's picture

Always keep in mind that the rosy budget deficit scenarios concocted by the CBO rely on perpetual 4%+ annual growth from 2014 on out. 

Thu, 05/29/2014 - 09:18 | 4805174 NMFP
NMFP's picture

Do you not have blow and hookers in America? 

Thu, 05/29/2014 - 09:18 | 4805175 Tjeff1
Tjeff1's picture

Look at the component breakdown. What is the one consistent positive its the Personal Consumption Expenditures.  This will soon make a slow downward drift from here.  

Thu, 05/29/2014 - 09:18 | 4805179 thismarketisrigged
thismarketisrigged's picture

there are no words left to describe this shit.

 

not only did the ''market'' not sell  off after this horrendous gdp number, but it fucking shot up and  is now at daily highs.

 

i am confident that we will see a 60-70 plus on dow and 5-6 pts at least on s&p.

 

this weather excuse is such fucking bullshit.

 

just because there was some cold weather, that does not shut down a fucking entire country.

 

living in new york, there were only 2 days the entire winter where the temps were brutally cold, like cold we rarely see, it was jan 7th and 8th i believe it was when high temps were like 7 degrees for the day, but 25 degrees while cold, is not cold that is not seen.

 

this weather excuse is just laughable, also, if weather was so fucking bad, why were online sales not up, shouldnt everyone who couldnt go outside to shop because of the ''terrible weather'' be shopping online instead?

Thu, 05/29/2014 - 11:21 | 4805723 Bernoulli
Bernoulli's picture

And not only would minus 1% a total nightmare number ("would" because in reality it is probably sth like minus 4% excluding Obamacare, QE and numbers fudging and all the stuff we don't know), but I simply can't get my head around the fact that people simply swallow the REVISION from +0.1% to minus 1%!!! That is WAY off.

Thu, 05/29/2014 - 09:19 | 4805186 q99x2
q99x2's picture

Layoff Washington D.C.

I will not.

Thu, 05/29/2014 - 09:20 | 4805188 dizzyfingers
dizzyfingers's picture

"Atlanta Mayor Kasim Reed is among nearly 150 people invited to the 62nd annual Bilderberg conference, being held this year in Copenhagen, Denmark, from May 29 to June 1."

Bilderberg POTUS candidate?

Thu, 05/29/2014 - 09:19 | 4805189 Sardonicus
Sardonicus's picture

I have had to wear a flannel shirt to keep warm the last two days.

It's an old one, so it is not bullish.

Thu, 05/29/2014 - 09:35 | 4805274 F.A. Hayek
F.A. Hayek's picture

If you had an ounce of patriotism in you, you would go to WalMart and get yourself a new flannel. Everyone needs to do their part.

Thu, 05/29/2014 - 10:29 | 4805505 Chaos_Theory
Chaos_Theory's picture

Drive your made in Japan car to WalMart, walk on your made in Vietnam Nikes, wearing your made in Malaysia shirt, made in Indonesia shorts, waving your made in China American flag and buy that made in Mexico flannel shirt.  Pay with magic money credit card from that New York bank.  Buy some food with the SNAP card too.

 

Thu, 05/29/2014 - 09:20 | 4805197 yogibear
yogibear's picture

First deflation, then hyperinflation.

Bernanke said it only happens after wars. The people need to try this PhD bastard for treason, along with Evans and Dudley.

Thu, 05/29/2014 - 09:24 | 4805215 d edwards
d edwards's picture

See ZH article "Is this the mania phase?"

 

Looks like a big YES.

Thu, 05/29/2014 - 10:48 | 4805575 Tall Tom
Tall Tom's picture

And what about the extended "campaigns" in Iraq and Afghanistan? I guess that they were not wars?

Thu, 05/29/2014 - 09:21 | 4805200 Bioscale
Bioscale's picture

Tax the cold weather! Tax all the cold out of it for the good of the sheeples and banksters! Fucking hot weather FTW. Fuck

Thu, 05/29/2014 - 09:23 | 4805206 falak pema
falak pema's picture

THE NEW NORM OF THE AGE : GDP CONTRACTION DIRECTLY proportional to S&P expansion. 

FT critique in nit-Pikettying is going through the same evolution. The more wrong you are the more strong is your plutocratic rebuke.

Play on Oligarchy fools as the middle class dissolves into proletariat; and London property goes the other way !

Thu, 05/29/2014 - 09:23 | 4805209 Magooo
Magooo's picture

Paul Krugman was quoted earlier saying "we are on the right track - the green shoots are there -- just need a few trillion more barrels of water --- and before you know we will have a jungle with fruit trees and pineapples --- keep with my program - I am Pulitzer - I know what I am talking about"

 

Real World:

HIGH PRICED OIL DESTROYS GROWTH

According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices.  http://www.iea.org/textbase/npsum/high_oil04sum.pdf

 

Now what does a 100+ sustained price do?

 

Thu, 05/29/2014 - 09:25 | 4805219 dizzyfingers
dizzyfingers's picture

"this weather excuse is just laughable, also, if weather was so fucking bad, why were online sales not up, shouldnt everyone who couldnt go outside to shop because of the ''terrible weather'' be shopping online instead?"

Absolute proof that "the government" and "the fed" do not run the country as they believe...or if they don't really believe, as they have said/pretended/would like to...

Thu, 05/29/2014 - 09:25 | 4805221 Everybodys All ...
Everybodys All American's picture

Anyone think Obama policy can turn this economy around?

Thu, 05/29/2014 - 10:52 | 4805593 forwardho
forwardho's picture

Does that include the X/Y axis?

Cause it sure as Hell is upside-down.

Thu, 05/29/2014 - 09:25 | 4805222 Save_America1st
Save_America1st's picture

I love the smell of a phyzz silver sale in the morning.

Smells like...Victory...

Some day this fiat war's gonna end...

https://www.youtube.com/watch?v=bPXVGQnJm0w

 

Thu, 05/29/2014 - 09:26 | 4805231 JRobby
JRobby's picture

Ta Daaaaa!!!!!!

No Income No Demand

No Income No Demand

No, oh fuck it they get it?

Thu, 05/29/2014 - 09:28 | 4805240 JJdog
JJdog's picture

but but but Steve Liesman from CNBC said we will get about 4% GDP at least, this can't be right

Thu, 05/29/2014 - 09:30 | 4805250 ejmoosa
ejmoosa's picture

If we are doing this good with a shrinking economy, we are going to be kicking ass as the economy improves!

Thu, 05/29/2014 - 09:42 | 4805308 Tjeff1
Tjeff1's picture

It wont this is as good as it gets.

Thu, 05/29/2014 - 10:49 | 4805582 ejmoosa
ejmoosa's picture

It was sarcasm...

Thu, 05/29/2014 - 09:31 | 4805255 Last of the Mid...
Last of the Middle Class's picture

Dow through the roof and GDP contracting!  Who wouldda thunk it. Gee I wonder what the problem is? Circular money, gotta love it.

Thu, 05/29/2014 - 09:33 | 4805263 yogibear
yogibear's picture

Totally Federal Reserve controlled market. The Fed's "buy everything" is alive and well.

While inflation is becoming more pronounced the Federal Reserve pushes for even more inflation and printing through back-door Treasury purchases.

The Edward Snowden of the bankster crowd that reveals the Federal Reserve's back-door purchases out in the open and their real books will be a hero.

Thu, 05/29/2014 - 09:42 | 4805299 Tjeff1
Tjeff1's picture

Cue the midlevel banker deaths.  This is the "kill the engineer" strategy.  Kill the ones that impliment the fraud to keep the secrets.

Thu, 05/29/2014 - 09:36 | 4805278 the not so migh...
the not so mighty maximiza's picture

Belgium will fix it

Thu, 05/29/2014 - 09:37 | 4805284 MountainsRoam
MountainsRoam's picture

I can't even find the GDP revised info on Yahoo Finance?? I guess with the markets rallying big, they don't want this info out, which could be a big hit to upcoming earnings reports?? BUY BUY BUY

Thu, 05/29/2014 - 09:51 | 4805339 GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

It's on Yahoo's main page, top story.  Whoever put it there will be looking for a new job this afternoon. 

Thu, 05/29/2014 - 10:39 | 4805535 Emergency Ward
Emergency Ward's picture

According to the story, the harsh winter battered the economy.

Thu, 05/29/2014 - 09:39 | 4805292 Tjeff1
Tjeff1's picture

 1% down and that is with a phoney 1.3% deflator.  Inflation is more like 3 to 4% at least.  This economy has not grown at all since the last recession.  Add in all the Obamacare spending and you get a clear sense of the health of the economy:

 

-1.0% -2.7% (inflation adjustment) - 0.5% obamacare adjustment = -4.2% (Real GDP)

Thu, 05/29/2014 - 09:41 | 4805303 dizzyfingers
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