American Economy (thus world economy)

[Jackson50]

NJ5 said:

Jackson50 said:

NJ5 said:

MontanaHatchet said:

And without following your link, I don't give much credibility to a man who believes that the U.S. economy will "tank" within this year (in other words, the next 3 months), especially with Christmas approaching. Maybe the nation will see poor year over year growth, and maybe the economy will even shrink (but that's entirely unlikely). Yet...how is it going to "tank?" Maybe you can call doom and gloom in the next 5 to 10 years, but right now, there's no reason to believe that the global economy will somehow collapse.

Oh, you believe the government's statistics which show GDP growth? Here is a handy link to destroy that illusion:

http://financialsense.com/fsu/editorials/schiff/2008/0905.html

3.3% GDP growth? Nope, more like a 3.5% decline. The USA is already in recession. Of course, the mainstream and most of the financial media didn't even touch this.

 

There is actually a reason as to why the government used a low GDP deflator rate. I do not wish to explain all of it in here, but the provided link will explain it.

https://www.ftportfolios.com/Commentary/EconomicResearch/2008/8/4/gdp_report_mis-underestimated

 

From that article:

"GDP inflation is designed to measure changes in the prices of the things we produce".

To which the article I posted "replies":

"Producer prices are now rising faster than consumer prices (the latest annual reading of the Producer Price Index ‘PPI’ being 13.2% annualized from the 2nd quarter), which helps explain why corporate profits have fallen drastically. In addition, from July 2007 through July 2008 (the latest data available) import and export prices have risen 21.6% and 10.2% respectively. In other words, no matter what numbers you use, the 1.2% GDP deflator simply doesn’t add up."

 

That guy is simply calling a conspiracy where there is none. He said it does not add up, but provides nothing to showcase that.

That petroleum prices skyrocketed in the 2nd quarter is congruous with pushing down the GDP deflation rate...which is exactly what the BLS numbers showed. I am not saying this is good for the economy. Some feel uncomfortable with the idea that higher oil prices increase GDP. They may be right to be concerned, as deep down it doesn’t really make sense; but to say the government fudged the numbers is a conspiracy theorist's pipe dream and nothing more.