Made in the USA Back in the USA
Join Back in the USAContact Back in the USAAbout Back in the USANews and Articles from Back in the USABack in the USA Manifesto
 
Search Back In The USA:
 

Sign up for our newsletter
Twitter  Facebook  G+




 Lincoln Logs Made in the USA

 Made in USA flatware, forks, knives, spoons, liberty tabletop

 Made in USA Air Purifiers

 Made in USA Carts and Wagons, Alumacart

  Back in the USA Back in the USA Articles Cartoons Back in the USA Editorial Back in the USA New Tech Back in the USA Vintage America  
       
 

We Don't Want to Spoil the Holiday Financial Good Cheer—But...


Written By: Phil Davis

December 2014

If you have spent any time here at Back in the USA, you realize that we treat government financial reports with a grain of salt. It seems to us the data is usually manipulated, or at best mismanaged, in order to present a better picture; politics—to be sure—are at the center of the confusion.

The latest financial report from the Commerce Department, as the Wall Street Journal headline mentioned, “U.S. Economy Gains Momentum” and then stated:

“After the Strongest GDP Report in more than a Decade.”

The third quarter GDP (Gross Domestic Product) was revised from a 3.9% growth rate to a whopping 5%, in one quarter. That is a huge jump, and so our “Spider Senses” immediately went off, because this is not a 5% per quarter economy. But, almost every financial pundit, advisor, economist, and talking head have claimed the new revised numbers tell us we have entered into the promised land of a pre-recession (or depression, depending who you are) economy.

So we turn to our respected and trusted reporters and economic people who are true thinkers and un-swayed by the hype of government reports. The first is from Zero Hedge and their article “Here is the Reason for the ‘Surge’ in Q3 GDP”:

Fast forward to today when as every pundit is happy to report, the final estimate of Q3 GDP indeed rose by 5% (no really, just as we predicted), with a surge in personal consumption being the main driver of US growth in the June-September quarter. As noted before, between the second revision of the Q3 GDP number and its final print, Personal Consumption increased from 2.2% to 3.2% Q/Q, and ended up contributing 2.21% of the final 4.96% GDP amount, up from 1.51%.

So what did Americans supposedly spend so much more on compared to the previous revision released one month ago? Was it cars? Furnishings? Housing and Utilities? Recreational Goods and RVs? Or maybe nondurable goods and financial services?

Actually no. The answer, just as we predicted precisely 6 months ago is... well, just see for yourselves.

Back in the USA News Story: We Dont Want to Spoil the Holiday Financial Good Cheer, Butwww.backintheusa.us

In short, two-thirds of the "boost" to final Q3 personal consumption came from, drumroll, the same Obamacare which initially was supposed to boost Q1 GDP until the "polar vortex" crashed the number so badly, the BEA decided to pull it completely and leave this "growth dry powder" for another quarter. That quarter was Q3.”

In other words, the cash that was supposed to increase the GDP in the first quarter, and did not because of the weather, was put in the 3rd quarter, instead. Moreover, isn’t the payment for Obamacare supposed to begin in the first quarter anyway? Are they saying we are letting everyone pay in the third? We don’t think it works that way.

In short, two-thirds of the "boost" to final Q3 personal consumption came from, drumroll please—Obamacare

And a Tweet from Professor Peter Schiff confirmed the same:

Back in the USA News Story: We Dont Want to Spoil the Holiday Financial Good Cheer, Butwww.backintheusa.us

Here are some more tweets by the good professor, which helps us understand the truth behind the "rosy" picture, as a matter of fact— the picture is not good or "rosy" at all.

Back in the USA News Story: We Dont Want to Spoil the Holiday Financial Good Cheer, Butwww.backintheusa.us Back in the USA News Story: We Dont Want to Spoil the Holiday Financial Good Cheer, Butwww.backintheusa.us Back in the USA News Story: We Dont Want to Spoil the Holiday Financial Good Cheer, Butwww.backintheusa.us Back in the USA News Story: We Dont Want to Spoil the Holiday Financial Good Cheer, Butwww.backintheusa.us

The financial markets are not paying any attention to these facts and data points. The stock market keeps reaching all-time highs, as if all the players are smoking opium during the markets trading sessions. The smoke and mirrors games of government-revised numbers are the only data the markets and the press seem to care about.

So it is, at the end of the matter, the markets actions—the buyers and sellers—that are the only thing that matters; the market is telling us to buy, buy, and buy.

But, as any good game goes, things can change in an instant. We are not suggesting not buying the market or a new home, only to be very cautious.

Oh, and one more item…buy American products!

~~~~~

Other Articles of Interest:

Inflation, Deflation, and a Depression...Really?

The American Dream: This Isn't Your Parent's America

The U.S. Falls from Number 1

Government Math on Job Growth—Fail!

Navigating the Perilous Waters of Health Insurance

Unemployment's Down? Job Growth's Up? (Building Our Own Graphs)

*****

And Don't Forget to sign up for our Newsletter with all types of Great Ideas

We produce Stories and Articles about life in America - products made in the USA - to benefit America jobs. Buy American!

 

 
   
       
 
       
Site Map - Service Agreement - Privacy Policy - Terms Of Service
2016 Grassroot Inc. All Rights Reserved


BackintheUSA Brings you products Made in the USA and the US companies who make them.