Saturday, October 31, 2009

Trick or Treat: Commerce Department GDP number comes back to haunt them.

When the Commerce Department released the quarterly Gross Domestic Product figure at 8:30 Thursday, I said to myself that the number was flat out bogus. The number showed an increase in GDP by 3.5%. The stock market closed up 199 points that day on the news. At the time, I didn't understand why the stock market went up on a fake number. Well as the day went on, the financial experts started to ask certain questions about the 3.5% increase. They were questioning how much of the figure was due to government spending such as the Cash for Clunkers program and the $8,000 first time tax credit. Friday gave the analysts and economists their answer big time. The monthly consumer spending report was released showing that consumer spending was down 0.5%. That decrease was the biggest decline since December. Two thirds of GDP is made up of "consumer spending". So when the report showed that consumers weren't spending, the stock market sold off by 249 points. The consumer spending report showed what I and many other people who exercise common sense already knew. The economy isn't growing. It doesn't matter how the media tries to spin this bad news into an illusion of good news, facts can't be manipulated. On Friday, Obama had to audacity to lie again to the American people by claiming that his so called stimulus package "saved "or" created 650,000 jobs". I've heard of a person trying to have his or her cake and eat it too, but Obama takes the cake literally. Obama's loyal flock wouldn't dare question his absurd claim of saving "or" creating 650,000. How exactly can a job be "saved or created" in the same statement? A crackhead can make more sense then that. There is no proof that Obama's stimulus created any private sector jobs, and there is proof that his stimulus helped to save private sector jobs. As I said before, Obama's true believers will suck it all up like a sponge. Every state in America is losing private sector jobs. Also, the state governments are laying off workers. The states are laying off workers, because sales tax revenue for the states have dropped drastically. A state's sale tax revenue is really the best indicator of economic growth, because the more people spend, the more tax revenue is created. That is why I got a good laugh at the illusion or trick the Commerce Department tried to play. Their deceptive GDP number was a lame trick, yet their plan backfiring in their face was definitely a treat. Happy Halloween.


Anonymous Anonymous said...

what do you expect from a crackheaded potus literally

10:16 PM  
Blogger JMK said...

This is why the WORST is yet to come!

These aren't "new ideas" we're seeing today. These were the same ideas that FAILED in the 1970s.

LBJ began massive over-spending by enacting an inane "cash for clunkers" program of his own called "the war on poverty" to distract attention away from the incredible costs of Vietnam.

Nixon ("We are ALL Keynesians now") followed up LBJ's excesses with more of his own, including some of the most expensive and far-reaching regulation ever instituted, including the failed policy of "wage and price controls" which has recently been tried (and with even MORE "success") in Zimbabwe - while Nixon's policies introduced massive inflation (close to 10% annually here) Zimbabwe's seen staggering hyper-inflation (often topping triple difits per year).

By the time Nixon left office, Ford was reduced to trying to rally Americans with the slogan "Whip Inflation Now" (WIN)....intimating that those in government didn't realize that it wasn't businesses or wage earners causing inflation, but the government printing more and MORE currency!

Carter still didn't get it and tried the current "solution" of spending even MORE to remedy a crisis caused by....over-spending!

The result was DISASTER.

A disaster remedied by the Supply Side policies that the Reagan administration brought in.

Carter presided over the highest post-WW II Misery Index (inflation + unemployment added together) in America at 22!

The Reagan administration's policies brought that down to single digits by March of 1986.

George Bush Sr., took America BACK onto a Keynesian path and became only the second post-WW II American President to preside over an entire tenure of double digit Misery Indexes (the other, of course, was Carter, though Bush 41's 10.2 average annual MI was far lower than Carter's staggering 16.8).

Bill Clinton started off his tenure with Bush 41's recession and tried resisting his Democratic Congress calls for even higher taxes and more spending. When Gingrich took over Congress in January of 1995 he, ironically enough, pushed Bill Clinton farther than Clinton wanted to go in a Supply Side mode - Gingrich actually CUT federal spending, slashed the Capital Gains tax by 1/3 from 30% to 20% and THAT is what delivered the lowest Misery Indexes in over 40 years (6.1 in 1998) AND all those vaunted "budget surpluses" of the late 1990s!

Today, we've re-embarked on the failed policies of the 1970s....the results are not going to be "as bad," this all likelihood, they're going to be worse....much, MUCH WORSE.

We are NOT the only economy left standing after a major global calamity (WW II) and we have just been badly wounded by the tarnishing of our major global investment vehicle (mortgage-backed securities) because our government sponsored Fannie Mae's BUYING all those subprime loans and Freddie Mac's packaging them as "triple A rated mortgage-backed securities.

Nobody's buying those any more and America is in danger of losing its place as "the Capital of world finance."

We are NOT in a position to be able to deal with the economic calamity that was "Carterism" the way we were back in 1981.

So yes, the WORST is yet to come.

1:16 PM  
Anonymous Anonymous said...

In Nigeria, Muslims said Christian turned Christians into goats to steal Mazdas and arrested the goat-

Obama said muslims have the right to wear burqua sheets like the KKK.

5:12 PM  

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