- If economy so strong why the zero interest rates?
- Actual text of BEA report revealing
News aggregator The Drudge Report’s has a collection of stories regarding the latest Gross Domestic Product (GDP) figures from the Obamacrats US Bureau of Economic Analysis (BEA), claiming 5% growth for the economy. Scanning them, along with the smiley face, one might think things are assuredly rosy for 2015. However, we provide two links and brief excerpts from articles that suggest a different picture. The truth is more like the bandaged up “emoticon.” We presume more critical economic analysis of the BEA report will be coming.
Via The Blaze: day of reckoning needs to happen” ‘It’s Gonna Be a Bloodbath’: Expert Reveals the Economic Defects Under the Government’s Numbers
“Overall the economy is quite weak,” Peter Schiff, CEO and chief global strategist at Euro Pacific Capital Inc., told TheBlaze this week.
The fact that the Federal Reserve has kept interest rates near zero, where they’ve been since the onset of the recession in 2007-08, speaks volumes about what the nation’s financial leadership really thinks about the economy’s strength, Schiff said.
Shah Gilani writing at Money Morning refers to the revised BEA figures as a “put on” and “pure BS” Gilani has a more extensive analysis and revelations from the report available here. We subscribe to his free e-mail newsletter and so can you. Excerpts:
What the BEA gift-givers did in their revisionist juggling act was knock down personal savings by revising savings down over previous months by almost 20% and magically put all that money, about $140 billion, to work in the economy.
And presto, we had 5% GDP growth.
It gets funnier and freakier.
They said most of the increase in spending was on Obamacare.
According to Gilani who delved into the BEA report, it also lists as reasons for the adjusted GDP that government spending rose. But keep in mind that the increase in consumer spending was largely made up of Obamacare outlays, which is government forced spending and hardly an indication of a vibrant economy. It is like saying taxes are consumer spending (remember that Obamacare was only sustained as constitutional by way of the Supreme Court renaming it a tax). Taxes are not supposed to be part of the GDP. Our two cents also includes the observation that any willing increase in spending or GDP resulted from main street factoring in a Republican victory in the fall. And we would remind readers that the stock market increase is a bubble generated significantly by “nowhere else to put one’s money” with interest rates so low.
R Mall
To the extent there is any real improvement in the economy, much, if not most. should be attributed to the dramatic decline in gasoline prices. This is almost omitted entirely from any discussion. Could that be due to the fact that no one has fought harder against effots to achieve lower energy prices than Our Dear Leader. Any opportunity he has had to block drilling on federal lands, encourage bans on fracking, and blocking the XL pipieline, he has grabbed onto with glee. The fact that the US is quickly becoming energy independent is in spite of Obama policies and ideology.
Yes while falling fuel prices means less spending on that, one of the reasons is more spending on production and the real savings to dependent business and industry and consumers has spurred some spending as well. The auto industry is going to benefit as well.