And Scene: Q2 GDP 1.3%, Gold Surging On Imminent QE3 Resumption

Tyler Durden's picture

A simply unprecedented miss in Q2 GDP well below the consensus range, with the official number printing at 1.3%, giving it upside room for revisions in case QE3 does not pass, although at this point it is more than obvious that this number is goalseeked to give Bernanke the carte blanche to start more easing any second. This number follows an epic revision to prior data, with Q1 plunging from 1.9% to 0.4%. The GDP internals were simply appalling: Personal Consumption tumbled from 2.1% to 0.1%, on expectations of 0.8%! The US consumer is dead despite not paying mortgage payments. Lastly, US PCE Core printed at 2.1% on expectations of 2.3%. As we have been expecting since December, the US is on the verge of a triple dip recession within the bigger depression. With a deadlocked Congress, the Fed has no option but to do another monetary stimulus as seen by the surge of gold to near record highs on the data in the $1.625 range and the implosion in the USDCHF to fresh all time lows.

Revised Q4 2010 thorugh Q2 2011:

Gold reaction:


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chump666's picture

ftse just smashd, what a mess.  

Cash_is_Trash's picture


We keep hearing that quite often now.

The Recoveryless Recovery

tekhneek's picture

Who was it that said "We're in a depression, damn it!" on live television? He was like a huge name apparently.

That shit was awesome.

Cassandra Syndrome's picture

The idiots behind Rick Santelli pre cheering the number was delightful viewing.

BCTwelve's picture

He/They  is/are the only reason to watch cnbc...I was also pre cheering, that big red bar was delightful

High Plains Drifter's picture

i couldn't figure out what that was about. i heard chearing or whatever, then santelli started talking about how bad things were.........oh well...........

EscapeKey's picture

Well, someone will tout this as great news, as QE3 is now much more likely.

USD/JPY is an absolute rollercoaster atm. 77.36.


DeadFred's picture

Is this this going to be one of those low volume algo pumped days??? Just wondering.

Boston's picture

No QE3 until the SPX dips another could be a 2% headstart.

No Bid's picture

But Chevron beat by 9%!  That's good right?



rdenner's picture

Cue the Price is Right "YOU LOOSE" song.


Bum bump ba baaaah.. Waaaaaaaaah!



caerus's picture

please...have your pets spayed or neutered...

youngman's picture

Why...they will become a good food source..ask the Asians...

rdenner's picture

Was wondering why i was getting junked...


But it works either way..... I planned it... :)

Esso's picture

"Cue the Price is Right "YOU LOOSE" song."

Funny, but it's lose, not loose. Loose means coming apart.

Oooooops! Nevermind.

John Law Lives's picture


Time for a spin job.  Transitory...  QE3 to save the day!

magpie's picture

And watch the deficit / debt target discussion turn into the bipartisan stimulus bill.

WonderDawg's picture

CNN trying to spin it with this as the Breaking News headline on

U.S. economy grew at 1.3% annual rate in second quarter, up from a revised 0.4% rate in previous quarter.

What a fucking joke.

Thorlyx's picture

Still, you must admit, it sounds much better this way.

ElvisDog's picture

Except QE3 will do nothing to help GDP, unemployment, or consumer spending. Those horrible numbers were created right in the middle of QE2.

mayhem_korner's picture

Casey has struck out.

Esso's picture

Egads! There's a serial junker amongst us that hates us for our reality!

chump666's picture

flash crash on the ftse...tight, dow i aint missing this.  puts on

Bob's picture

It's 8:39 AM: Do you know where your PPT is?

Raynja's picture

I locked them in a closet til we go limit down

smlbizman's picture

the libor 1 and 3 mos. are creeping higher....

oogs66's picture

but, but, but doesn't that mean the Q3 rebound will be even that much stronger? :D

Hansel's picture

Can we all agree that the Fed is full of shit when they say "the economy continued to expand at a moderate pace"?  Also, why does the Fed need to do more "easing" to inflate prices if the consumer can't afford these prices?

Thorlyx's picture

next will be: "the economy continued to expand at a negative pace"

DavidJ's picture

Recession dead ahead (assuming we left the previous recession)!

nodhannum's picture

Not to worry mein herr..It's the summer of recovery or is that Summers(s) of recovery, I forgot. 

mailll's picture

We are already in the first stages of a recession.  They just didn't revise these numbers yet to show this. 1st quarter GDP revised down form 1.9 to 0.4? Am I interpreting this correctly? What happened to the 1.8, 1.8, 1.9 revisions? Correct me if I am not reading this right.

Quintus's picture

Ben!  Get to da Choppa!

nantucket's picture

that's just funny, i don't care who you are.  Arnie would approve.

spydell-lj's picture

green fucking shoots, Thank you FED

Squid-puppets a-go-go's picture

...and how much of that is to be 'revised lower' in subsequent months... as if they dont already know the real number

r101958's picture

My guess is that Q1 and Q2 are actually reversed (fudged, manipulated...whatever) or that more was taken from Q1 instead of Q2 so they could say 'hey, this means things are actually improving from Q1 to Q2'. If you take most of the reduction in the Q1 number and subtract it from the Q2 number you will be fairly close to reality. So, yes, that means Q2 was actually a contraction.......oooops, sorry, I meant 'negative growth'.

mailll's picture

This reminds me of when they revised the unemployment numbers from 9.8% to 8.8% in just 3 months.  It's all Bull.