This page has been archived and commenting is disabled.
Excluding Obamacare And The "Harsh Winter", Q1 GDP Tumbled -1.4%
It is somewhat ironic that even as reporters posing as economists, reporters posting as reporters, and even the US department of truth and failed weathermen posing as the Bureau of Economic Analysis decided to blame the "harsh winter" for the collapse in GDP, according to the BEA's own GDP report, real Q1 GDP which printed at -0.2% actually benefited from the cold weather as a result of Utilities adding 0.59% to the bottom line GDP in the quarter.
But wait, because if it wasn't for that now traditional "contributor" to the US economy, the mandatory tax better known as Obamacare, and which was the primary contributor to the 0.62% in healthcare contribution to GDP, Q1 GDP would have tumbled by a consolidated -1.4%.
Finally, if one also excludes the 0.45% contribution from the now ridiculous addition in inventories which even Joe Lavorgna has noticed and is warning will result in weaker growth in the future...
The near $100 billion increase in Q1 inventories means we could see a substantial slowing in the current quarter.
— Joseph A. LaVorgna (@Lavorgnanomics) June 24, 2015
... Q1 GDP would have been -1.9%.
So if one excludes just three items: Obamacare, the "harsh winter", and near record inventory re-stocking in anticipation of a spending deluge that never comes, Q1 GDP would have tumbled nearly 2.0%.
And this is why a recession-level inventory liquidation is imminent, one that could on its own push the US into recession:
So, bring on the rate hikes?
»
- 12607 reads
- Printer-friendly version
- Send to friend
- advertisements -
This eCONomy is on fire! Raise rates now Janet, and slow this out of control juggernaut down! Then make me some cookies.
Excluding Obamacare
That's excluding one hell of a lot.
some might say ObamaCare's whuts dragged the rest of the economy under...not a very politically correct observation tho
That be the truth doc!
The ACA is doing as predicted many years ago, consuming all the working stiff's spending money. Strip out all government spanding on the ACA since its beginnng, and you will find almost all of the GDP is negative. Strip out handout spanding and defense spending and you will be apalled at how fucked up the economy really is.
I still do not know how they could pass a law that requires a citizen to buy a private sector product! We have lost it in this country!
Just think of the economic benefits of a major earthquake in this country. Demand used to be limited by our ability to pay, but now with infinite debt and money printing, all we need is a good excuse. If things don't improve they may have to burn the whole thing to the ground to create adequate demand. This is what we are faced with. To stimulate demand...to save our economy, they are willing to do just about anything....war, civil war, huge debt, compounded lies, malinvestment...virtually anything.
...Classic "Upside down" economy.
War fixes any upside down economy.
This of course means: S&P shoots to 5,000 and unemployment goes to 1.4%
/s
you have no vision....S&P 10,000, unemployment -4% and interest rates -4%....Everyone is a billionaire(just like Zimbabwa) and no loans need to be paid off....as you receive more...the more you borrow. Free sex changes for all whether you want it or not!
FTFY
So how, exactly, does one determine Obamacare's contribution to GDP? Is this described somewhere?
Magic 8 Ball says: Ask again later.
And Yellen and company are wondering why you're not spending lol
Tornadoes! It's the tornadoes!
The new normal . . .
"So, unless there’s good reason to believe that productivity growth will revive, trend GDP growth may very well stay stuck in the 1% range for years to come. If so, growth slowdowns could much more easily push growth below zero, leaving very little room for error. Is the Fed ready?"
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-simple-math-output-growth-in-hours-worked-real-gdp-growth
Hike the rates before it DROPS even MOAR!
Hahaha....and some people wondered why I left the USA and live in the tropics...
Raise the rates and all of a sudden savers have money to spend...fuck the banks....
Didn't you get the memo? There are no more savers. Raise rates and people might start saving again and that might be used for actual investment. Nah, we're not changing until rock bottom.
They have no choice to raise rates, they don't pension will implode..maybe that's the goal here who knows.
The lack of recovery is killing pensions.
Who's paying into anything other than Social Security right now? Certainly not new workers.
Working off an inventory build is never easy...so far the energy patch has done it well YTD.
That's about it though.
Seems like we need a new forumula to calculate GDP then. We can't have these negative numbers gumming things up now.
Watch for the Christmas Holiday Sales to begin on July 4 .
GDP forgot to administer itself a flu shot.
And if you excluded exports and consumption, it falls even more, to around - 75%!
white-house-chef-missing-found-dead
Why arent we on this like Red Meat?
You want to get Fuddied?
Go knock yourself out.
Wait until the Kenyan village idiot launches a Global Warming stimulus program to jump start the economy. It worked last time, I tells ya.
/sarc
Pay no attention to that man behind the curtain.
But I thought it was a women?
so does liesman lecture us all day about how GDP doesn't matter anymore?
anyone remember the last time CNBC mentioned any concern about we've gone $19 trillion in debt to get a 2% economy? since debt doesn't matter to them, why don't we borrow $100 trillion and then we can get a 10% GDP print?
This mess called Obamacare was not enough. Yesterday our Democratic leaders McConnell and Bonnier rammed a trade bill down the people throat. The fact that 58% of the people didn’t want it did not matter and despite his repeated blunders from the middle east to the economy they granted this clown additional powers. When do ya think we should begin the process of removing this group of liars and gangsters? They represent no one except the criminals on Wall Street so better wake up folks!
If only 58% didn't want it, it's simply because the majority of the 42% who do have no clear understanding what's in the TPP.
I think I read about this stuff 31 years ago. Or maybe that was the book's title.
The Constitutional convention of states to reign in, or terminate the federal government is continuing to gain steam. Thank God most Congressmen have no clue how much power Article V of the Constitution gives the states over the feds. Hopefully, they won't wake up until the process is well along.
It's called an Oligarchy
No excluding shit. Who do you think you are? The BLS?
Silly Austrians, a strong economy can of course be founded on bartending jobs at Chili's, those welding jobs at John Deere and CAT are destructive to American growth. </s>.
BULLISH!
This is proof that Obungocare is a winner. Funneling working class money into insurance co. money vaults is the new economic engine that could.