Google Groups
Join To Get Blog Update Notices
Visit the Hickory Hound Group

Thursday, May 1, 2014

Economic Relevance - 1% GDP in 1st Quarter = The Depression of 2007 til present

The Hound: Compare the lack of growth of the past 7 years to the real inflation rate over the period and you will see that we have been losing traction the entire time. Economic growth has never come with smoke and mirrors. Back in November of last year, Goldman Sachs expected 3% growth.  As you will see below they are way off. 

The Federal Reserve and their Puppet in Chief and the Congress have put out their convoluted numbers and excuses. It's the weather -- bwahahaha! WHATEVER

Here are past GDP numbers and their predictions for the upcoming rest of the year. We'll see if they end up being right. Fools, fools everywhere.... Fools, fools I don't care.

Leaders lead by example. We have no leaders running this country - JTS

US economy slowed to 0.1 percent growth rate in Q1 - AP through myway news - MARTIN CRUTSINGER - April 30, 2014 - WASHINGTON (AP) — The U.S. economy slowed drastically in the first three months of the year as a harsh winter exacted a toll on business activity. The slowdown, while worse than expected, is likely to be temporary as growth rebounds with warmer weather.                      Growth slowed to a barely discernible 0.1 percent annual rate in the January-March quarter, the Commerce Department said Wednesday. That was the weakest pace since the end of 2012 and was down from a 2.6 percent rate in the previous quarter.                     Many economists said the government's first estimate of growth in the January-March quarter was skewed by weak figures early in the quarter. They noted that several sectors — from retail sales to manufacturing output — rebounded in March. That strength should provide momentum for the rest of the year.

17 Facts To Show To Anyone That Still Believes That The U.S. Economy Is Just Fine - Zero Hedge - Tyler Durden - April 30, 2014 - ...
#1 The homeownership rate in the United States has dropped to the lowest level in 19 years.
#2 Consumer spending for durable goods has dropped by 3.23 percent since November.  This is a clear sign that an economic slowdown is ahead.
#3 Major retailers are closing stores at the fastest pace that we have seen since the collapse of Lehman Brothers.
#4 According to the Bureau of Labor Statistics, 20 percent of all families in the United States do not have a single member that is employed.  That means that one out of every five families in the entire country is completely unemployed.
#5 There are 1.3 million fewer jobs in the U.S. economy than when the last recession began in December 2007.  Meanwhile, our population has continued to grow steadily since that time.
#6 According to a new report from the National Employment Law Project, the quality of the jobs that have been "created" since the end of the last recession does not match the quality of the jobs lost during the last recession...
  • Lower-wage industries constituted 22 percent of recession losses, but 44 percent of recovery growth.
  • Mid-wage industries constituted 37 percent of recession losses, but only 26 percent of recovery growth.
  • Higher-wage industries constituted 41 percent of recession losses, and 30 percent of recovery growth.
#7 After adjusting for inflation, men who work full-time in America today make less money than men who worked full-time in America 40 years ago.
#8 It is hard to believe, but 62 percent of all Americans make $20 or less an hour at this point.
#9 Nine of the top ten occupations in the U.S. pay an average wage of less than $35,000 a year.
#10 The middle class in Canada now makes more money than the middle class in the United States does.
#11 According to one recent study, 40 percent of all Americans could not come up with $2000 right now even if there was a major emergency.
#12 Less than one out of every four Americans has enough money put away to cover six months of expenses if there was a job loss or major emergency.
#13 An astounding 56 percent of all Americans have subprime credit in 2014.
#14 As I wrote about the other day, there are now 49 million Americans that are dealing with food insecurity.
#15 Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin.  But now the number of women in the U.S. on food stamps actually exceeds the number of women that have jobs.
#16 69 percent of the federal budget is spent either on entitlements or on welfare programs.
#17 The number of Americans receiving benefits from the federal government each month exceeds the number of full-time workers in the private sector by more than 60 million...

Hey Fools - This was Reagan's Guy - Not any Hack Politicians of Today.
US Economy Is A House Of Cards — Paul Craig Roberts - April 30, 2014 -
The US economy is a house of cards. Every aspect of it is fraudulent, and the illusion of recovery is created with fraudulent statistics.                                   American capitalism itself is an illusion. All financial markets are rigged. Massive liquidity poured into financial markets by the Federal Reserve’s Quantitative Easing inflates stock and bond prices and drives interest rates, which are supposed to be a measure of the cost of capital, to zero or negative, with the implication that capital is so abundant that its cost is zero and can be had for free. Large enterprises, such as mega-banks and auto manufacturers, that go bankrupt are not permitted to fail. Instead, public debt and money creation are used to cover private losses and keep corporations “too big to fail” afloat at the expense not of shareholders but of people who do not own the shares of the corporations.                           Profits are no longer a measure that social welfare is being served by capitalism’s efficient use of resources when profits are achieved by substituting cheaper foreign labor for domestic labor, with resultant decline in consumer purchasing power and rise in income and wealth inequality. In the 21st century, the era of jobs offshoring, the US has experienced an unprecedented explosion in income and wealth inequality. I have made reference to this hard evidence of the failure of capitalism to provide for the social welfare in the traditional economic sense in my book, The Failure of Laissez Faire Capitalism, and Thomas Piketty’s just published book, Capital in the 21st Century, has brought an alarming picture of reality to insouciant economists, such as Paul Krugman. As worrisome as Piketty’s picture is of inequality, I agree with Michael Hudson that the situation is worse than Piketty describes.                       Capitalism has been transformed by powerful private interests whose control over governments, courts, and regulatory agencies has turned capitalism into a looting mechanism. Wall Street no longer performs any positive function. Wall Street is a looting mechanism, a deadweight loss to society. Wall Street makes profits by front-running trades with fast computers, by selling fraudulent financial instruments that it is betting against as investment grade securities, by leveraging equity to unprecedented heights, making bets that cannot be covered, and by rigging all commodity markets.

House Budget Committee to Hold Hearing on Poverty - New York Times - ANNIE LOWREY - APRIL 30, 2014 - Is the federal government responsible for lifting millions of Americans out of poverty or trapping them in it?                     That question has become a political Rorschach test this year, the 50th anniversary of President Lyndon B. Johnson’s war on poverty. On Wednesday, Representative Paul D. Ryan, chairman of the House Budget Committee, is holding a third hearing on the government and the poor, featuring testimony from the “front lines.”                    In recent months, Mr. Ryan, a Wisconsin Republican, has loudly argued that the government has failed in its effort to end deprivation and ensure mobility.                       “Today, the poverty rate is stuck at 15 percent — the highest in a generation,” a House Republican report on the war on poverty argued. “The trends are not encouraging. Federal programs are not only failing to address the problem. They are also in some significant respects making it worse.”                     With the federal government spending about $800 billion on 92 programs to combat poverty in the 2012 fiscal year, Mr. Ryan has been critical of redundancy. The spending includes, according to a House Republican tally, 15 programs related to food aid and 20 related to education and job training.                  “The very disarray among all these federal programs has created what’s known as the poverty trap,” the report said. “Poor families face very high implicit marginal tax rates. The federal government effectively discourages them from making more money.”                          Those programs also at times penalize low-income workers when they earn more, Mr. Ryan argues.

No comments: