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Q3 GDP Grew 5%, "Fastest Rate In More Than a Decade"

Visbek

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http://www.nytimes.com/2014/12/24/b...n-region&region=top-news&WT.nav=top-news&_r=0

GDP figures were revised to 5%, up from 3.9%. Growth in Q3 was mostly due to:
• Investment by businesses
• Increased consumer spending
• Improvements in trade

Consumption may be up in Q4 due to falling gas prices. This means Q3 was the strongest quarter since 2003.

Keep in mind that there is obviously much more to an economy than GDP, but it's still a good sign.
 
I'll wait for the 9th thread on this subject before making a more substantial comment. No real reason for the 9th, just sounds nice.
 
No real reason for the 9th, just sounds nice.

Pretty much summed up my opinion of libertarianism in a nutshell--as long as it sounds nice....
 
Pretty much summed up my opinion of libertarianism in a nutshell--as long as it sounds nice....
If you would actually like to have an intelligent discussion of libertarianism rather than engage in childish drive by's, man up and start a thread on the subject.
 
Pretty much summed up my opinion of libertarianism in a nutshell--as long as it sounds nice....

That was pretty good ;)
 
If you would actually like to have an intelligent discussion of libertarianism rather than engage in childish drive by's, man up and start a thread on the subject.

I have no need to discuss what the voices in other people's heads are saying to them. There is no childish drive by. Like Hemingway, less is more.
 
I have no need to discuss what the voices in other people's heads are saying to them. There is no childish drive by. Like Hemingway, less is more.
Gutless liberalism.
 
http://www.nytimes.com/2014/12/24/b...lumn-region®ion=top-news&WT.nav=top-news&_r=0

GDP figures were revised to 5%, up from 3.9%. Growth in Q3 was mostly due to:
• Investment by businesses
• Increased consumer spending
• Improvements in trade

Consumption may be up in Q4 due to falling gas prices. This means Q3 was the strongest quarter since 2003.

Keep in mind that there is obviously much more to an economy than GDP, but it's still a good sign.

That is good news. We needed this kind of news. Happy New Year!
 
Some other takes on the revision:


Final%20Q3%20GDP%20contribution_2.jpg


http://www.zerohedge.com/news/2014-12-23/here-reason-surge-q3-gdp


http://www.zerohedge.com/news/2014-...conomy-grew-140-billion-q3-due-data-revisions
 
Durable Goods Orders in U.S. Unexpectedly Fell 0.7% in November

Durable Goods Orders in U.S. Unexpectedly Fell 0.7% in November - Bloomberg

But (and for some reason apparently NY Times didn't feel the need to highlight this) apparently Defense Spending was up 16% in the third quarter.

Although they talk around (but do not mention) the benefits of fracking:

...“Consumption growth appears to have accelerated further in Q4, with plunging gasoline prices shifting upside to more discretionary areas...
 
Q3 GDP Grew 5%, "Fastest Rate In More Than a Decade"

let the celebration / debunking begin!
 
But (and for some reason apparently NY Times didn't feel the need to highlight this) apparently Defense Spending was up 16% in the third quarter.
Wow, 16%!!!! Oh wait, you mean around $11 billion.

1) There were no revisions to the contribution of defense spending to GDP between the advance estimate, and today's release. That's one reason not to mention it.

2) The bump up in military spending contributed to 0.6% of the increase in GDP. In comparison, personal spending was responsible for 2.2%, services 1.5%, corporate investment 1.2%, net exports 0.8%. I.e. notable, but not critical.

3) Those other aspects (notably corporate investment) are good signs for the economy as a whole.

I'm also curious if you applied these same critical skills to the Q1 drop in GDP. Maybe I should go back and take a look. :D
 
Gutless liberalism.

It was actually a libertarian who made the driveby comment that he was afraid to comment. Funny how you let him slide....
 
2e27c8770142a04e7c44ae64f264c1f1.jpg
 
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http://www.nytimes.com/2014/12/24/b...lumn-region®ion=top-news&WT.nav=top-news&_r=0

GDP figures were revised to 5%, up from 3.9%. Growth in Q3 was mostly due to:
• Investment by businesses
• Increased consumer spending
• Improvements in trade

Consumption may be up in Q4 due to falling gas prices. This means Q3 was the strongest quarter since 2003.

Keep in mind that there is obviously much more to an economy than GDP, but it's still a good sign.

TYRANNY! Obama's DESTROYING the economy! His war on Wall Street and Big Oil is bankrupting the nation!!!!

Oh, and the Dow just went over 18,000 for the first time.
 
What did Obama do that lowered gas prices?
Hey, if gas went up to $5.00 a gallon. Who would ya blame, Obama. It's under $2.00 in some places. Who do you blame for this tragedy sir?
 
TYRANNY! Obama's DESTROYING the economy! His war on Wall Street and Big Oil is bankrupting the nation!!!!

Oh, and the Dow just went over 18,000 for the first time.

I think that's more an effect of the Fed's QE, which, if I understand correctly, has devalued the dollar against other foreign currencies. If that's the case, you can see how much less the dollar buys, the ones that people are working for, being of lesser value. Do please resume your DOW celebration.
 
It's funny to see just how few responses this thread has gotten. If the GDP were growing slower, we'd have seen Republicans trying to bash Obama's skull in for something. Yet, his policies haven't changed, his ideas haven't changed. So how is it that these ideas aren't affecting the economy as badly as a Republican would hope? I thought Obama was a cunning, snake tongued tyrant hellbent on destroying America. How can his policies not be destroying America? That America. How resilient she is. F'n ah 'Murica:

y9EA6.jpg
 
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I think that's more an effect of the Fed's QE, which, if I understand correctly, has devalued the dollar against other foreign currencies. If that's the case, you can see how much less the dollar buys, the ones that people are working for, being of lesser value. Do please resume your DOW celebration.

Like how the dollar's buying a lot less gas?
 
It's funny to see just how few responses this thread has gotten. If the GDP were growing slower, we'd have seen Republicans trying to bash Obama's skull in for something. Yet, his policies haven't changed, his ideas haven't changed. So how is it that these ideas aren't affecting the economy as badly as a Republican would hope?
The recession ended 5 1/2 years ago and its only just now that we finally have an undeniably solid GDP reading. If you want to give Obama credit, you should probably point out which policy of his it was that caused this nice bump in GDP, why it has taken so long and whether or not it will continue. Personally, I think our recovery and growth has more to do with FED policy and American capitalism than anything Obama has done, but Obama is president so he does get the kudos.

I am more concerned with why the FED hasn't begun raising rates considering the economic growth and employment level. That tells me there is still an underlying problem that hasn't been resolved and will rear its head again. Whether or not Obama slips out of town before that happens remains to be seen.
 
The recession ended 5 1/2 years ago and its only just now that we finally have an undeniably solid GDP reading. If you want to give Obama credit, you should probably point out which policy of his it was that caused this nice bump in GDP, why it has taken so long and whether or not it will continue. Personally, I think our recovery and growth has more to do with FED policy and American capitalism than anything Obama has done, but Obama is president so he does get the kudos.

I am more concerned with why the FED hasn't begun raising rates considering the economic growth and employment level. That tells me there is still an underlying problem that hasn't been resolved and will rear its head again. Whether or not Obama slips out of town before that happens remains to be seen.
The denial is ****ing incredible! But know matter how you in your mind, try to spin this, the average everyday American doesn't give a Damn how it got this way, just as long as it has happened. Points for Obama whether you feel he deserve it or not, that's just the way it goes.[emoji6]
 
I think that's more an effect of the Fed's QE, which, if I understand correctly, has devalued the dollar against other foreign currencies.
You're misinformed.

The USD tends to grow stronger vs the Euro when QE is announced. The exception is in 2014, when QE efforts have largely been phased out, and the USD still grew stronger. USD vs GBP shows no real correlation to rounds of QE. USD vs JPY shows no correlation to either QE or EUR or GBP. The Yuan is still largely pegged to the USD.

QE can act as an inflationary force... unless the country is in a liquidity trap and/or facing other serious deflationary pressures (as the US did from 2007 to the present). It also seems that QE didn't do much, since the banks do not seem to have substantially increased lending and/or it is only very recently that consumer borrowing has gone up. Oh, and the Eurozone and the UK have done their own rounds of QE.


If that's the case, you can see how much less the dollar buys, the ones that people are working for, being of lesser value. Do please resume your DOW celebration.
1) Even by your own claim, you're incorrect. QE has been mostly phased out, and the Fed is unlikely to start another round.

2) The USD is actually fairly strong right now -- strong enough to potentially harm exports, and make imports more expensive. (E.g. Strong dollar takes toll on U.S. businesses)

Now, we might make the claim that QE has boosted the stock market. In particular, it appears that cheap debt has fueled lots of stock buy-backs. However, AFAIK that doesn't have a big effect on GDP. Thus, it does make sense to look at what current GDP figures say about the economy, and conclude that things improved substantially for the US in Q3 2014, even as most other world economies took a bit of a nosedive.

Therefore: :2dance:
 
The denial is ****ing incredible! But know matter how you in your mind, try to spin this, the average everyday American doesn't give a Damn how it got this way, just as long as it has happened. Points for Obama whether you feel he deserve it or not, that's just the way it goes.[emoji6]
That's what I said, genius. But go ahead and tell me which particular Obama policy caused this spike in GDP and why it took 6 years for it to happen. Then you can tell me if this level of GDP is going to continue and if so, why? And if not, why not? Let me thank you in advance for not answering a single one of those questions.
 
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