The Mogambo Guru notes that, according
to a recent Bureau of Economic Analysis report, “Real gross domestic
product – the output of goods and services produced by labor and
property located in the United States – increased at an annual rate of
3.2 percent in the first quarter of 2010, (that is, from the fourth quarter
to the first quarter)."
The Guru notes
computing 3.2% of our $14 trillion GDP, we get the $448 billion dollar figure
of the quarterly “growth” in GDP, which comes out to roughly $2
trillion per year, which is – surprise! – roughly approximately
nearly exactly precisely how much money the federal budget-deficit spending
is now pumping into the economy.
In short, it looks like the entire growth in GDP is due solely to –
dollar for dollar! – the deficit-spending by the federal government!
Hahaha! “Growth!” Hahahaha!
And this is before another large item is included in the calculation of GDP,
which is exports, which are a subtraction from GDP, which means that since we
had a $532 billion annual trade deficit (a negative number) in the last 12
months, subtracting a negative number from GDP magically results in an annual
addition to GDP of $532 billion – or $133 billion quarterly – just
like that! Hahahaha! “Growth!” Hahaha!
You’d never know it from the Bureau, which admitted that “The
increase in real GDP in the first quarter” was influenced by
“exports”, although it did not say that the trade deficit
increased, but, instead, said only that “Imports, which are a
subtraction in the calculation of GDP, increased”, although it did not
mention, for the benefit of us math-impaired guys out here, that their
calculation of GDP was thus increased by a math trick.
Smoke and mirrors
can only last so long. Buy commodities, particularly gold and silver.
George F. Smith
Read his book : The
Flight of the Barbarous Relic
Visit his website
Read his blog
George F. Smith is the author of The Flight of the
Barbarous Relic, a novel about a renegade Fed chairman and the editor of