The Atlanta Fed GDPNow Forecast for second quarter GDP slipped a tiny bit from 2.4% to 2.3% following today’s wholesale trade report.
Latest forecast: 2.3 percent — July 12, 2016
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2016 is 2.3 percent on July 12, down from 2.4 percent on July 6. The forecast of the contribution of inventory investment to second-quarter real GDP growth ticked down from -0.50 percentage points to -0.55 percentage points after this morning’s wholesale trade report from the U.S. Census Bureau.
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The current “inventory bubble”(say for example in oil or gasoline) is far different from the last one (in 2008-9.) Back then we had inflation and the Federal Reserve was hard at work raising rates to an “astonsishing” 5%.
Since that time every Government entity in North America has been demanding non payment for everything….while generating a massive inflation…because “if interest rates rise above .25% we’re all dead.” This simply makes no sense in the sense that Capitalists seem to be proclaiming “we don’t have capitalism here.”
The irony that the equity market is at an all time records, borrowing rates are at an all time low, spending by Government at every level is beyond imagination, Wars (internal and external) are springing up everywhere, etc etc represents some type of “failing.”
Strictly speaking in terms of The God Capitalism the current situation appears to be the most astounding success in the History of Money actually because….indeed…there is no penalty whatsoever for printing and printing and printing….but quite the opposite….the God of Interest Rate REWARDS said activity!
So “Capitalistically Speaking” it would seem only logical to say…to the Government in particular…”you’re still not spending enough” yes?
I think the only complaint from Wall Street in this cycle is that somehow the Government got all the free money in this cycle….and I think there is a lot of truth in saying “if the Government got all the free money and keeps spending it all where is the economic boom promised by Lord Keynes?”
2% after spending ten trillion in a single year? That doesn’t sound like growth to me…although I’m sure BORROWING the next ten trillion to fund the next “Keynsian Nirvana” will be much better for all Parties concerned.
So seriously….whats to complain about?
Instead of “mandated insurance as healthcare Instead of seeing a Doctor” why not hand out free money for two cheese burgers at McDonald’s plus fries and all you can drink?
Might tone down the riots that are well underway.
Someone must be socking it away in their secret Swiss bank accounts – you know like that $6 Billion that went missing from the U.S. State Department.