GDP Hopes Slashed As Trade Deficit, Inventories Tumble In October

Tyler Durden's picture

The resurrected hopes of lift-off velocity GDP growth in America suffered a double whammy this morning.

 

A considerably bigger than expected trade deficit (-$62mm vs -$59mm exp) suggests Q4 GDP growth may take a hit...

 

and then wholesale inventories tumbled 0.4% MoM (the 2nd biggest plunge in over 3 years) notching more potential from economic growth hopes.

 

Still forget Q4 right? 2017 will be trumperrific.

Still, the last two times wholesale inventories contracted year-over-year, the US economy dropped into recession...

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Long memory man's picture

LOOK AT THE DEBT, LOOK AT THE DEBT.

Default looms, already done I reckon, cannot give Germany the gold back, and gold they send is re smelted? give me a break here.

 

 

floomby's picture

1) We won't default - the government issues the currency, it is more politically tanable for the government to print it's way out of the hole.

2) We knew inventory was going to be down this quarter, we had more of it last quarter than average - in other words would be GDP for this quarter got suckered into Q3 numbers.

dimwitted economist's picture

um... Trump WON so now everything is GREAT!

Right?

or maybe not so much?

is it possible it will take TIME maybe a LONG time

For him to ACCOMPLISH anything???

Maybe We are Already in Deep Shit after the past (2) Bad Administrations?

Eagle40's picture

True very true and in the end this will be ugly.

SallySnyd's picture

 Here is an interesting look at what the Q Ratio is telling us about current stock market valuations:

 

http://viableopposition.blogspot.ca/2016/11/what-is-tobins-q-telling-about-stock.html

 

A century of measuring stock market values using the Q ratio shows that it always returns to the mean.

BullyBearish's picture

"Their" M.O. has been to furiously pump up the "market" in advance of known bad news...to those in the know, it's called HANDING OUT BAGS OF $HIT TO THE BRAINWASHED

MFL5591's picture

More positive news to boots stock another 1000 points! Laughable game we are watching!

max_leering's picture

yep, so positive is this news I quit playing the "game" many moons ago... but keep stackin'!!

Baby Eating Dingo22's picture

Trumptastic

Trumperific

Trumptacular

Trumpmazing

Trumpendous

So many ways to describe what America's orange haired savior has in store

And the libtards already whacking 12 pennys in his hands

bada boom's picture

I call it Trumpeuphoria.

We shall see.

spastic_colon's picture

who cares it will be after the obummer admin is out.........plus I'm busy today selling productive (stocks) assets and buying useless trinkets.

bada boom's picture

Stocks don't care why should I?  /s

 

King Tut's picture
King Tut (not verified) bada boom Nov 25, 2016 9:24 AM

H & P 500 (Honeybadger & Poor)

Claire Voyant's picture

Deal with it.

Trees do grow to the sky, the biggest and the greates!!!

Nothing beats Trump fertilizer,

King Tut's picture
King Tut (not verified) Claire Voyant Nov 25, 2016 9:22 AM

I will never be able to BTFD again.

dryoyi's picture

Donaldinho is a jokster elected by desperate people living in the collapsing empire of chaos. MSM has now found a new lie to cheer everyone up

backspaceone's picture

he fooled a lot of ppl..thats for sure 

Justin Case's picture

The USD liquidity needs to be addressed.Why? That makes things cheaper for merica to import.

Yen & Yuan are doing the swan dive and that helps their exports to merica. Cheaper for consumers.

Wonder what the FED hasn't figured out yet? One third of the country is out of work because they outsourced manufacturing, therefore serfs can't borrow any moar money to consume even cheap stuff from Asia.Raising rates will cut into discretionary spending and cause the zero rate bonds to be trashed some moar.

Raise interest rates and that will reduce the demand for dollars, increase the cost of mericans borrowing money and the economy will be in the expess lane to recovery? Right? I had it all backacwards. Go old Yellen, you tell'em.  (8>0)

Conax's picture

The masters of the money game are stuck. If they let the 'dollar' inflate, gold goes up. (Gasp!)
They want inflation everywhere but not in gold or silver.

-Trapped.
All they can do is talk tough about interest rates, then raise them (maybe) a paltry .25% which is zero plus a smidgen. In reality, zirp forever.

Justin Case's picture

They need to raise them so that they can lower them again. lol

They've painted themselves into a corner. Either way there will be yuge consequences in what ever they try. They waited too long to get back to the norm and the economic distortions have ballooned. I think they are really testing, somewhat like Ker-Plunk. Ya never know if the ball will drop until you pull the stick. If they pull the wrong one the house of cards will cave in. They are tip toeing on thin ice and litening to the cracks as they move forward to find the limit and not back paddle.

I don't believe they can pull it off.

Dan'l's picture

More of Obama's giant shit sandwich.

the grateful unemployed's picture

my friend they won't even let you in the Trump Tower where the shit sandwiches are served

backspaceone's picture

trump ... 4 more years of spending on crap that no one wants or needs. just what the doctor ordered 

Justin Case's picture

F-35's are now over a trillion $ in costs and a few years off schedule. That's crap. Navy vessels being towed around the world. Are they going to tow them during battles at sea? Maybe pull another ship behind as a back-up?

That son, is a waste of money. Spending on infracstructure is beneficial to the masses, where the trillions on defence spending goes into the MIC circles. They are billionaires. And you? What benefit was it to you all the money that went into the MIC? Ya need infrastructure. The economy depends on efficient movement of goods. Incase you are unaware, the majority of goods in merica move by road and rail. See any trains fall of the tracks lately? No congestion on the finely paved roads across merica? How's the snow removal equipment? Canada is next door, give us a call when ya get buried. You can pay us instead of buying yoar own.

the grateful unemployed's picture

yes well uh, its certainly no worse than the economic situation Obama inherited, ahem, yes, well i see a lot of green bars real high green shoots after that, and just saying, cough cough, that Donald Trump is every bit as capable of generating economic growth when the bar has been lowered, i mean not 2008 lowered by lower a little bit anyway, to make it easier for the new president, cough cough, are we done recounting those votes? and then there is the recession of 2000 which Bush inherited, which he turned around (not so much really) when he started the iraq war which is still going on and accounts for the massive debt we have, but each president gets to prove their ability to generate economic growth and i am sure Donald Trump will (high) rise to the occasion, having as his principle economic specialty being bankruptcy and all.

Stick in the Mud's picture

Use more indentations,

   (Cough cough)...

     and this is pure poetry.

backspaceone's picture

trump takes axe to gold and bonds. only game in town is stocks or cash. that's the way the system is rigged folks. take risks in stocks or do nothing. 4 more years of spending. nothing has changed. nothing ever will. learn now or never learn. 

Justin Case's picture

Gold is a barometer of currencies. They are adjusting the barometer to make the currency look better than it is. When faith in Gov't paper fails, everything falls apart. Gold and silver are constitutional money, nothing else can be called money. Paper with pictures of dead Presidents are called currency. Backed by promises, nothing else. You are the debt serf by the Gov't spending on yoar behalf.

StreetObserver's picture

You too can help trash GDP in the Obamanation by saving all your discretionary spending for President Donald Trumps first month of GDP; February.