This page has been archived and commenting is disabled.
Q3 GDP Rises 3.5% Despite Sharp Slowdown In Consumption, Pushed Higher By Government Spending Spree
Moments ago, the market was expecting Q3 GDP to print at 3.0%, and was pleasantly surprised when instead it got a 3.5% print, sending all risk assets kneejerk higher. However, a quick glance into the components revealed that things were certainly not as they seemed, with Personal Consumption in Q3 actually decreasing notably from Q2's 2.5%, to just 1.8% in Q3, below the 1.9% Expected, and accounting for 1.22% of the 3.54% Q3 GDP, the lowest Personal Consumption boost to GDP since Q2 2012 excluding the infamous Q1 winter vortex quarter.
Some of the notable moves in Q3 GDP: Inventory, which was expected to boost GDP, was in fact a detractor, leading to a -0.57% net impact on the bottom line. This, however, was more than offset by net trade, which surged from Q2's -0.34% to 1.32% as Imports reversed for the first time since Q1 2013, meaning imports decline in Q3 suggesting a sharp slowdown in end demand in the US, which is also why inventories slid. One wonders just what all those PMI indices were looking at if domestic industries not only ground to a halt but reversed from Q2?
So what happened to boost Q2 GDP if that core driver, the US consumer was not there? Simple. Government stepped in, and stepped in hard, with its 0.83% boost to the bottom line GDP the highest since Q2 of 2009!
In other words, the Fed, which yesterday had the advance GDP print in hand, decided to end QE on hopes Government spending would continue. And since government spending in this case was mostly a function of surging National Defense spending, it appears that Janet Yellen is strongly betting on, drumroll, war.
»
- 12613 reads
- Printer-friendly version
- Send to friend
- advertisements -
You spend, we spend, its all the same.
But no moar Apple products for me!
On the good ship
Lollipop
you can spend a lots
and never stop ....
Let's spend our way out of all this debt.
Changed that shit to Y = C + I - G + NX.
I fully intend to spend myself to riches, and indebt myself to fulfill the American Dream.
Persimmons are up 100% over last year this time. No one is buying them either. I told the grocery manager soon they’ll need to post that security guard in front of the fruit instea dof that bank.
US government debt = $18,000,000,000,000.
If average interest rates on that debt go back to more historic norms @ say, 4%, interest would be $720,000,000,000 annually.
At 6%, interest = $1,080,000,000,000.
But don't we owe it to ourselves? Sounds like a wash to me.
fed saw this and continueing claims and declared ALL GOOD. carry onward...
It's not so much the debt itself, but the servicing of the debt (aka interest paid). Most ZH'ers despise the fed because they pull money from their asses, loan it to the government and our tax dollars (aka our labor) is used to pay hundreds of billions of dollars in interest on that money. Definately NOT a wash in my book.
1/3 is owed to foreigners
2/3 owed domestically
The problem if we default domestically is many pensions and banks will go TU
If we default on the foreign debt then the dollar becomes toilet paper overnight
you can say we are paying it to ourselves, but either it's going to come from the taxpayers pockets or other government programs will be cut to the bone. Either way there will be pain.
But no moar Apple products for me!
So what you are saying is Apple needs to get working on it's missile program pdq.Apple is gay.
And that means loving shit...
ebola will save the economy, more ebola more consumption, thats how it works
ebola will save the economy, more ebola more consumption, thats how it works
trickle up theory?
Kyle Bass 101...when all else failes, WAR.
It's for the kids you know...
Thank God the government stepped in to save the day.
<Can't wait for the revisions.>
Dear Abbey,
My husband and I were trying to understand why the price of cat food has gone up, the can smaller and it tastes like pink slime from rats.
How come nobody has said what contribution the newly enhanced statistic "intangibles" helped?
Also would like to know where the imputed coke and hookers goes.
Whadday mean they don't measure it?
They don't "measure" anything else, so why not?
Appreciatively,
Gagging in Grand Blanc
Dear Gagging,
Everything is getting better. If you would pay attention you'd know that. One more peep out of you and the both of youse will be getting 3 hots and a cot for a few days before you're turned into an Ebola anti-body bio-manufacturing entity at Camp 17.
Love and kisses,
Your favorite Kapo,
Abigale
Dear Abby, Dear Abby
My fountain pen leaks
My wife hollers at me and my kids are all freaks
Every side I get up on is the wrong side of bed
If it weren't so expensive, I'd wish I were dead
Signed, Unhappy
Unhappy, Unhappy
You have no complaint
You are what your are and you ain't what you ain't
So listen up Buster, and listen up good
Stop wishing for bad luck and knocking on wood.
Signed, Dear Abby.
J.Prine
I think I found your real name...
Hello in there.
How many times can they crack the same egg?
In the fiscal year just ended the fed gov't took in a RECORD $3 trillion in taxes, and those taxes come out of the pocket of the "consumer" aka citizen.
It's never enough.
In the fiscal year just ended the fed gov't took in a RECORD $3 trillion in taxes, and those taxes come out of the pocket of the "consumer" aka citizen.
never enough
In the fiscal year just ended the fed gov't took in a RECORD $3 trillion in taxes, and those taxes come out of the pocket of the "consumer" aka citizen.
Does anyone have a reason for the RECORD TAX Haul? Stock Market? Exports/Fracking? Seems with so few working that incomes would be much less so taxes less. Corporations pay little over all into the pot. Where did it all come from?
janet created a new and improved bond - tax receipts(future) and sold it to the government and walla reverse repoed and instant cash receipt for da gov-all good on the ledger!
By now we should be sure we don't believe a thing they say. They conjure whatever numbers meet their purposes. At this point we probably couldn't handle the truth - it would stop our hearts cold.
That's like a trillion per post no
enough
War on Ebola®
We didn't quarantine that.....and you can't make us.
correct. and so it's Italy that is quarantining US soldiers in route from West Africa to home
Sweet, cause we have enough on our plates over here, and the media is about to lose their minds just over the election, so that came just in time.
The Army discovered that the donkey meat in the Italian meatballs cancels out the monkey meat in the Halliburton contract cafeteria.
FUZZY MATH
So I'm getting ready for work today and Bloomturd sends me a headline push notification about Tim Cook being proud that he is gay. A little later on I turn on CNBS and that's all they are talking about. Now, to be clear, I don't give a rat's ass about Tim Cook's sex life. If he wants to be a pole smoker that's up to him, but why in the fuck does this have to be news? They had Ted Cruze on CNBS and all they would do was try to pigeon hole him on the gay issue. Lord knows that the U.S is so fucked up that we can't talk about the real issues.
You can bet that due to his admission many Apple groupies will now deem it appropriate for their lifestyle. After all it was a "GIFT" from God. Everything getting so WARPED
Must distract the peasantry.
All part of the media perceptions management.
This is the most important and inspirational personal announcement Tim Cook has ever madehttps://bgr.com/2014/10/30/tim-cook-on-being-gay-and-equality/
I don't want politicians in my bedroom, or my bank account, but damn this is over the top.
Tee heh....
I don't want them in my bedroom, bank account, kitchen, medicine cabinet or communicaitons but they can be all over your private information like stink on poop.
XOXO
Your "friend"
Timothy
so now we finaly understand why apple is crap stuff and essentially bought by fags..., it's just made by fags...
make sense now.
a headline push notification about Tim Cook being proud that he is gay
I just like women.....I feel so isolated.
Am I the only one left?
I just like women.....I feel so isolated.
You're not isolated, you're a lesbian.
A male lesbian? Is that a new category on the Census form?
My husband tells me he is a lesbian. He is very happy he got issued a male body. In his case he is a lesbain happily trapped in a man's body. I just tell him to shut up and go down. Is that bad?
No; that's good! I like you, too.
Tim Cock is gay?
When is Apple launching iDildo controlled via the iWatch?
iGerbal
personnaly i keep the patent for the idon'tknow
comtrolled by your thoughts,ha...
Yeah, people on the elevator will be wiggling around and shit and look like what's-her-face in When Harry Met Sally - in the restaurant.
Probably too lazy.
They'll just buy the gay app.
Saw that too. Thought the same thing, who gives a shit.
They created the emotional hot buttons for the masses. Any number can be pushed as we head towards war.
I am morbidly fascinated when I hear people talking about Russia these days, too. The kool-aid is good for a myriad of topics. All of them designed to take attention away from the disintegration of our way of life.
russia scares me too, not the real russia, but the one pushed by the media. mericans are sooooo fucking media-brain washed - clueless mutha fucks that can't think and understand, much less link cause/effect. and if there is three or more varibles- total confussion...iq dropping fast to desposian state of 1984/brave new world order...how could it be happening?
Elections have that effect. Do you realize how much money those politicians are spending to be the ass in charge.
"in charge".... LOl..... The money they are spending is so they can protect the asses in charge. They hope to get a little trickle down from their real owners.
I probably should have been a little bit clearer. "LYING ass in charge."
Yes they are protecting the bigger lying ass behind the curtain.
Well the dealers won't go to your house when you are in the public eye, so keeping up with the Jones's require that you get elected or re-elected or you get to be the one wearing the safari hat and go gambling in South America.
You have to wonder what is the attraction that would lead so many defrocked lawyers to spend millions of dollars to get a job that only pays $180,000 per year......and what kind of geniuses are they that they could spend just a term or two then leave office as multi-millionaires.....and retain the title of "Honorable".
The same goes for all these millionaire judges.
Just how dumb are we that we can't do the same in the private sector? Could there possibly be something wrong going on here?
It all corrpution. Nancy Pelosi only made 240,000 a year and has made over 10 million in office through investments over her career..... Same with alot of the other ones...
Insider trading. They all make so much money on the backhand. Its insane.
It all corrpution. Nancy Pelosi only made 240,000 a year and has made over 10 million in office through investments over her career..... Same with alot of the other ones...
Insider trading. They all make so much money on the backhand. Its insane.
Isn't 3rd qtr usually a srong month for Govt. due to fiscal year end?
Aside from the fact that a quarter is three months, not only one, perhaps the figures include the spending for hazmat suits.
The Q-3 GDP is like a pile of cowshit that's been laying in the sun for a week. Nice and crispy on the outside, and squishy with fresh crap on the inside.
I will never say "Yen Cross don't know shit" after this comment!
Good day to you!!
I just wish he wouldn't make it sound so tasty.
Guess I need a bagel and a schmeer.
Thanks for the slap in the face Tyler, looks likely that i might be one of the sacrificial lambs for MOAR GDP here living in the Middle East!
Being a lamb in the Middle East, there are some indignities you could suffer that would make a sacrificial offering the preferable option.
China and Russia (and Poland, Viet Nam, Japan, Phillipines, etc.) are all starting the war crank. This is going to get real messy by the end of 2015. I suspect it will get real hot in Syria and real cold in Europe this winter.
Slow motion train wreck for humanity, once again fueled by greed and arrogance.
Sigh. My time here on earth is limited to that spent caring for my family and friends.
It's all good, bro - we're all on the same eff'n train.
I wish. No one is going to war with anyone. Everyone has been pacified. There is no upside for war... If its all made up now, then they can continue to make it up....
the elections are next week and most polls are showing many democrats to be in danger of losing their seats (thank goodness). thus, the "pleasant" surprise, as an effort to shore what could end up being quite a loss for the libtard party
Getting to the last acts in the play.
Dems lose big, Eboma starts in with executive orders. Congress, with the big repub win, thinks they have a "mandate". They move to block anything and everything the brown clown tries. Eboma pushes harder. Maybe we get impeachment proceedings. The whole drama will be tempered by calls of racism and cutting off the EBT stream. Dumb animals lash out at what they think is causing their pain. Like an elephant dying of cancer.
For what it is worth November won't be boring.
Agreed.
plus one-brown clown(with big fucking ears).
Pretty funny.
Cut off the EBT.
"Release the Krakken!"
"most polls are showing many democrats to be in danger of losing their seats (thank goodness)."
What difference does it make? Hillary Clinton
Too bad honest and ordinary people who really care about our future aren't running for office. Just the jackals.
The system generally prevents competition. In Florida, the race for governor includes the current (Republican) governor, his (Republican-turned independent-turned Democrat) predecessor, and a Libertarian. Guess who didn't get invited to the televised debates when they raised the threshold. Running for office takes money, and not everyone can self-fund an independent run. Meanwhile, the two parties have captured the primary voting system to lock out competition, and RINOs do everything they can to denigrate and suppress conservatives withing their party.
We're presented with a choice, therefore: a slow slide into captivity/servitude or an incredibly painful, destructive system reset.
you can waste time and gas and write in your choice...
diabold to get it write on.
In a fallen world, it is axiomatic that the worst of us will rise to the top in government and finance.
Is it necessary to note that 80 to 90 percant of the politicians are lawyers and the vast majority of the successful financiers and Wall Street criminals are faux-Hebrews?
The line "A 10% jump in federal spending, mostly on Pentagon hardware, also bolstered growth. It was the biggest increase in federal spending since 2009, when the Obama administration put in place a huge economic stimulus package." says it all! Note this comes out right before the elections.
The economic recovery that the media and talking heads have been bantering around is a manipulated myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth, in many ways it is ground zero in the war to convince us all is well.
The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. Huge weakness in the economy has been shown by numbers that barely get by even after record amounts of stimulus. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella.
Recent changes in how the GDP is figured , which boosted growth thus reducing the debt to growth ratio, and attempts to spin poor numbers regarding employment have been met with skepticism. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/10/myth-of-economic-recovery.html
So the GOV spent a lot of money that they stole and now we are all rich?
So the GOV spent a lot of money that they stole and now we are all rich?
this was a pathetic GDP report. all u need to know:
Government spending jumped 4.6% in Q3 2014, up from a 1.7% increase in Q2 2014. That was the largest increase in government spending since stimulus-based spending boosted government spending by 7.5% in Q2 2009. Federal spending increased 10.0% in the third quarter, which was the first increase in federal spending since Q3 2012.
so great, borrow more $$$ to inflate a GDP statistic they "tweaked" (fixed to make it look higher than it really is ie. including government spending). not since the NE patriots were allowed to get away with taping the opposing teams walk-thrus the night before the superbowl (where teams script their first 10-15 plays) AND KEEP their titles, have i seen such manipulation.
If the inflation will come/originate from the government spending money they did not have, and acquired by printing, they are going to have to spend it, right?
They are just getting stsrted.
Slower growth than the same quarter one year ago. That is not an accelerating economy. That is a weakening one.
Brilliant administrative strategy! Do whatever it takes to make it all look good right up until elections! If they manage to hold the Senate, they rely on voters short memory in another three years. It it gets turned over to the competition, the competition is handed a basket of worms surely set to deteriorate further, so the new guys can be blamed. Aren't you all getting just puke sick of these tactics? Both parties suck and each side has their own track to the bottom. Pick your ride.
The 'net exports' sub-index looks like it was the highest since '09 as well.(+1.32%) I'll bet energy played a large roll in that number. The strong $ should erode that number in q-4. (lower profits per lower oil prices, and purchasing power erosion from the stronger $)
China builds ghost cities. 'Murika blows them up allowing new ones to be built - double bonus!
Yet another flight to quality day with the S&P outperforming DAX, FTSE, Hang Seng, etc. Such gains become more and more negative -- as the U.S. will eventually recouple/catch down to the rest of the global markets.
Reminds me of the 4th of July. Just starting to get dim/dark. You know the fireworks are coming. Just a matter of time...
Joo banksters make billions on war and the shedding of goyim blood.
Predator drone and panty cam sales are brisk. Everything else not so much
I think we need to send comments regarding Cook to the mayor of Houston for approval.
Yeah...sure...it's a truthful, honorable, no cut corners computation of 3.5%. No reason not to believe it...the day after the faucet is turned off. Yep. I still believe!
There's only two choice, become reposible as a country or blow up anyone who points out that we're irresponisible. More war it is.
can we invade somewhere with nice beaches and good looking women? Vietnam seems like it was better than Iraq or Iran...Cuba too easy...How about Brazil? That would get GDP UP!
You're not trying to get GDP up....
This is surprising. Personally, I think obama wants to give up the senate. Its a great way to cover his failed policies. He can just play the blame game for the next two years and phone it in from the golf course.
"Hello sir, I'm from Zogby Polls. Can I ask you how you voted today?"
"Sure. Straight Democrat ticket."
"Can I ask why?"
"Well, Obama has done a great job. The economy is much better, employment's up, GDP is up and govt. is creating new jobs everywhere."
"So, you feel as if the Democrats are fixing the economy?"
"Of course they are. MSNBC said they are."
"Sir, why are you dragging that big cardboard box around?"
" (indignant) That's not just a cardboard box. That's my home."
"Thank you, sir."
Must have called him on his Obamaphone.
NSA collects a fee for your targeted groups information.
Why should Google make all the money? NSA has first mover advantage and real time conversation tracking.
"Google may know what you're clicking, but we know what you're thinking."
Government spending spree? Just before an election? The most honest, transparent administration in history...
Can't wait for the revisions
Merry Christmas!
Please. All we need to know is GDP is just another bullshit figure published by the autocratic Progressive unionized gov't bureaucracy just before the election, as they've published the bullshit unemployment figures just before the last 2 election.
GDP BUILDING
BUY MOAR BULLETS, BOMBS, AND COUNTRY'S
The US air war against the Islamic State costs $8.3 million a day http://www.rawstory.com/rs/2014/10/the-us-air-war-against-the-islamic-state-costs-8-3-million-a-day/
So $8.3 million GDP growth a day. Zorg explains https://www.youtube.com/watch?v=Tt1W0F0yObg