EVERYTHING IS GROOVY …
Ready for your daily dose of economic Prozac?
Don’t worry about that nonexistent 0.1 percent economic growth rate during the first quarter of 2014 (which is likely to be downgraded in future reports). That anemic figure was all the weather’s fault. Like … all the weather’s fault. Unicorns and rainbows will be back before you know it, or so says the latest outlook from the Organization for Economic Cooperation and Development (OECD).
According to the OECD analysis, the U.S. economy will expand at a 3.9 percent annualized rate during the second quarter of 2014. All told, gross domestic product (GDP) in America will expand by 2.6 percent for the year and 3.5 percent in 2015.
Obviously both of those numbers are well north of the 1.9 percent growth rate the economy experienced in 2013.
So … what is the OECD basing its projections on? “Investment intentions and business expectations,” its report states.
Do we believe the OECD’s numbers? No … although for the sake of cash-strapped consumers and tapped out taxpayers we hope they are accurate. Hell, we don’t even care if a bunch of shameless interventionist politicians take credit for a miraculous rebound not of their making.
Here’s the problem, though …
As long as taxpayer subsidized economic intervention (i.e. expanded crony capitalism, welfare statism and bureaucratic growth) is ongoing – and the pool of people paying for it is shrinking – we are looking at an unsustainable situation vis-a-vis the consumer economy.
“The center cannot hold,” as we’ve said repeatedly … and when it finally breaks, it will wake people up to what’s really been happening all these years in Washington, D.C. (and in state capitals, county offices and town halls all across the country).
Hopefully we won’t hit such a breaking point, but there’s only so much stress the system can absorb … no matter how much rainbow/ unicorn propaganda we are spoon-fed by pro-interventionist organizations like the OECD.
22 comments
Please stop trying to be zerohedge. Those guys are at least trying to sell a position. Why even talk about this on your website when you have a lot of political things going on right now. You are in way over your head when you talk about Economics. Like where did you come up with your GDP estimates that it will be revised negative. Did you actually do some projections on it. If so, where do you see Business inventories for the first quarter ending up. How about imports/exports? Lets drill down into your number and take a look. Unless you are taking that info from somewhere else which you are not citing. Let’s have a conversation about this Will.
Has ZeroHedge even reported on the OECD estimates? I saw them first on Reuters. And they are not MY numbers they are OECD numbers – which I linked to in the article.
I apologize. I read the story incorrectly but be careful when you try to be like zerohedge and beat down everything. They have been calling for the world to collapse for 5 years now, and if you listened to them, you would have missed a 125% return in the market and you would of been left behind by the rich.
BTW: The fed has saved, at least for now, from a Japanese style stagnant economy. The Federal Government has destroyed the financial system with Dodd Frank so it is too hard for the banks to lend and take risk. So you have 5 years to get to upper middle class or you will be poor. We will have a class system in the US and the american dream will be destroyed.
“Federal govt’ has destroyed the financial system with Dodd Frank” – surely you jest.
The gov’t destroyed our financial system back when Hank Paulson cut the last little bit of floss holding together the ball of twine that was any real banking regs. keeping our system afloat. “No” it was said, “we need an unfettered market”….(that’s code for giving Wall St. douche bags and big banks a license to steal, lie, cheat, swindle and rob our money).
The funniest part about your diatribe is that the very gov’t that allowed it all to happen is the one you want to “fix” it all.
1st quarter GDP was revised today to -0.8%.
Really? Considering the next revision comes out the end of May, glad to see you got an advance copy. Any other economic numbers you can give me before they come out?
There is doubt about that, Nikki Haley’s gains were way above the rest of the US. Soon SC will be at the forefront, a model of a great Republican turn around.
There is something almost quaint about reading Sic Willies economic articles with his bashing of “crony capitalism.”I mean really Sic,what other kind of “capitalism” is there?
Whay?You think somehow all your “businessman” heroes are going to change EVERYTHING and go back to some idyllic fairy tale were there will be small family owned shops dotting the landscape?Absurd.
The so called “free market” system in this country IS “crony Capitalism.
Live with it!
And I am fine w/ that as long as I am not being forced to pay for another company’s handout!
I think a lot over what you are complaining about. It’s a difficult situation, but here’s the problem with what you are suggesting:
Imagine we are all in a classroom, trying to get up and get the fuck out to the playground. Teacher “SC gov’t” comes along and breaks everyone’s legs at their desk saying “this is for your own good” and decides not the break the legs of a couple of kids at other desks. They get up and get the fuck out of the class.
What I could argue is that you’re saying is “Hey, break those fuckers legs too! That’s ‘unfair'(or unjust, pick your progressive term)!”
See what I’m saying hoss?
So is threatening the that “breaking point” that is coming any day more scary than actually living through this “breaking point”?
Perhaps, that is exactly what is needed.
Maybe I should start using heroin instead of putting off the inevitable, since I’ve already started drinking alcohol.
I believe your analogy is off. IMO, the heroin use has been going on for some time.
The choice is whether to up the dosage and end your misery permanently after a few more good times(and they aren’t that great any more), or stop using and go into withdrawals that will debilitate you for some time and suck really bad, but maybe have a better life after a while.
maybe have a better life after a while
——-
let’s try all of it then
nuke Medina and threaten to nuke Mecca unless all the oil fields are turned over to us, plus Iran and all the Arab states adopt our constitution.
nuke Russia.
nuke North Korea.
give all the gold in Fort Knox (if there is any) to the 1% so it will “trickle down,” and then assassinate all of the officers of all the “too big to fail banks”
give all of the M-16’s in the military to our citizens by lottery and put free ammo dispensers at the airports.
..and furlough Congress.
I knew the hyperbole was coming, I just never know when.
You win.
it was the assassination of the bank officers, wasn’t it?
http://www.zerohedge.com/contributed/2014-02-24/keep-calm
http://www.latimes.com/business/hiltzik/la-fi-mh-surprise-probusiness-20140506-column.html
“Surprise! ‘Pro-business’ policies hurt state economic growth”.
In fact, there is a negative correlation between growth and ALEC business climate ratings!
And, Sam Brownback’s tax cuts have led to a 4-30-14 lowering of Moody’s credit rating. Nebraska was joined by Chris Christie’s NJ having their rating lowered in the last week, too.
You people really want the entire country to implode by following this craziness.
money is a philosophy, not a fixed currency.
wake up moments don’t happen they are super-imposed after the fact. people will not suddenly realize they’re being ripped off or bamboozled. that’s the ‘fantasy of the next election’ that david brooks often writes about.
On a side note, why doesn’t FITS ever attack the big banks…the crooked Wall Streeters who rig the system and walk(ed) away with OUR money and never seem to go to jail for it?