If readers need clarification on what was the primary source of spending-based "growth" for the US economy in the fourth quarter, the same source that bumped up final Q3 GDP from 3.9% to 5.0%, [3]please ping us: we will gladly explain the chart below. And just in case it is still unclear what Americans are spending their "gas sasvings" on [4], here it is one more time.
[5]
And just in case the fading impact of Obamacare is not already priced in, here is what Q4 inventories did: rising by $113.1 billion in Q4, this was the second highest quarterly increase in the 21st century, second only to September 2010. It's all GDP-crushing liquidations from here.
[6]
So big in fact that even the most upbeat permabull has no choice but to admit the truth:
A $113B inventory build in Q42014 means we could see less production and hence #GDP [7] in the current quarter.
— Joseph A. LaVorgna (@Lavorgnanomics) January 30, 2015 [8]
