Jump to content
House Price Crash Forum
interestrateripoff

Growth In The Us Economy Improves 0.78% Quartley Increase

Recommended Posts

http://www.bbc.co.uk/news/business-12308807

US economic growth accelerated in the last three months of 2010 to an annualised rate of 3.2%, corresponding to a 0.78% quarterly increase.

This compares with an annual GDP rate of 2.6% from the Commerce Department in the previous quarter.

A rise in consumer spending contributed to the growth, as did falling imports.

The Labor Department said that wages and benefits rose 2% in 2010, which is faster than 2009, but still the second slowest rate since records began.

The Labor Department has been collecting the figures for 28 years.

The fourth-quarter GDP figure is a first estimate, and could be revised either up or down in the coming months.

The US economy grew by 2.9% in the whole of 2010, which is the strongest year of growth since 2005.

The 4.4% rise in consumer spending had a particularly strong effect because such spending accounts for more than two thirds of US economic activity.

It's a miracle and just think at 3% growth the US is adding jobs......

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-12308807

It's a miracle and just think at 3% growth the US is adding jobs......

Personally believe it's quite likely that the UK will now de-couple from its Anglo-Saxon cousin and be mired in low growth and deflation for many years. Rather like Japan de-coupled from the US post 1990 and never recovered.

Viva la recovereh :lol: (for the US anyway)

Share this post


Link to post
Share on other sites

Personally believe it's quite likely that the UK will now de-couple from its Anglo-Saxon cousin and be mired in low growth and deflation for many years. Rather like Japan de-coupled from the US post 1990 and never recovered.

Viva la recovereh :lol: (for the US anyway)

I think you'll find the USA is our largest trading partner and there's no way to de-couple. Good for the USA is good for us, thankfully. Certainly my employer makes 90% of its sales in the USA so I've got no problem with the US economy booming, even if it is with funny money.

Share this post


Link to post
Share on other sites

Hmm,, funny how it seems every other G8 economy is currently growing, if not booming and ours is stuck in reverse. I guess we had worse weather than everyone else...!!!

The big question as asked on QT last night; what is the plan??? Possibly, maybe, perhaps discussing holding off the penny a litre increase in fuel duty, yes that was a f%^&ing classic, that will turn this countries fortunes around in no time...!

We are governed by absolute morons...!!!

Share this post


Link to post
Share on other sites

Hmm,, funny how it seems every other G8 economy is currently growing, if not booming and ours is stuck in reverse. I guess we had worse weather than everyone else...!!!

The big question as asked on QT last night; what is the plan??? Possibly, maybe, perhaps discussing holding off the penny a litre increase in fuel duty, yes that was a f%^&ing classic, that will turn this countries fortunes around in no time...!

We are governed by absolute morons...!!!

The plan's the same as ever Bingo - get the people to go on another decade long shopping spree on the back of rising house prices and get us all money shuffling again like Thatcher dreamed. Er shame that ponzi scheme has come to an end, anymore ideas? Hahaha

Share this post


Link to post
Share on other sites

I think you'll find the USA is our largest trading partner and there's no way to de-couple. Good for the USA is good for us, thankfully. Certainly my employer makes 90% of its sales in the USA so I've got no problem with the US economy booming, even if it is with funny money.

+1.25

If it was not for the US there would be no Gibson Les Pauls, Fender Strats and Mesa Boogie Amps!

Bottom line for me, I am happy to be under US rule rather than to be under the heel of Vlad the Impaler Putin or our Chinese trading, er, "partners." As for the EU--well that will last as long as they can keep bailing themselves out but it seems Dave has just said in Davos no to any more money (unless it is for the Irish).

Share this post


Link to post
Share on other sites

Excellent! Obviously the snow missed them... :rolleyes:

Mind you, this may just be the QE2 money coming through? :huh:

Surely that would imply it's a short term success? Although admittedly you would have to ignore the 20% unemployment rate at shadow stats, but if you do that it's clear it's been a tremendous success, only trouble is they'll have to keep on doing it year after year after year.

Share this post


Link to post
Share on other sites

http://www.independent.co.uk/news/world/politics/enough-is-enough-says-imf-as-spending-spree-revives-us-economy-2197778.html

Speaking in Davos, the US Treasury Secretary, Tim Geithner, said: "There's much more confidence now that we've got a sustainable expansion." However, he cautioned; "It's not a boom. It's not an expansion that's going to offer a rapid decline in unemployment."

However, doubts persist about whether the current pace of US expansion is sustainable, and her $10trillion national debt. As in the UK, America's fiscal deficit this year will run at about 10 per cent of national income.

Launching the Fund's latest Fiscal Monitor, designed to help police the world's major economies, the IMF's fiscal affairs director Carlo Cottarelli said: "The US has a lot of credibility. This does not imply their credibility can last forever." The Fund criticises the American budget reduction plan for not containing "binding multiyear restrictions on total spending" . It recommends: "In advanced economies where fiscal sustainability has not been a market concern, credible plans going well beyond 2011 need to be put in place urgently to lock in benevolent market sentiment."

Much will now depend on what working arrangements can be reached between Congress and President Obama, after the President offered to work with legislators in his State of the union address earlier in the e week. Some bipartisan spirit was displayed in remarks from the White House press secretary Robert Gibbs: "This is a problem many years in the making and will take a concerted effort by Democrats and Republicans working together to find a solution," he said.

The IMF also criticised Japan for running a similarly large deficit. Of the major industrialised economies, Japan boasts by far the largest national debt, approaching 200 per cent of GDP, proportionately three times that of the UK.

At the moment about half of Japan's long-term government debt is held by its own citizens, habitually hard savers. However, an ageing population means fewer workers able to buy bonds, and any rise in interest rates from the current near-zero levels would add massively to the bill for servicing the debt.

Glenn Uniacke, Senior Dealer at Moneycorp in London, commented; "The US government should be concerned about their longer-term problems. By not focusing on the US deficits and debt pile, any current growth rate is questionable. While the UK Government's actions may possibly send us into a double dip recession, perhaps it would be worth suffering the pain in the short term, in exchange for long-term prosperity."

Timmy is hilarious a sustainable economic recovery based on borrowing 10% of GDP which of course by default adds into GDP.

Got to love the sucking up by the IMF that the US is credible :lol:

Still I'm just relieved it's all contained and as Timmy points out US unemployment is going to rapidly decline...... Probably by people no longer qualifying for benefit rather than jobs being created by the globalists.

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-12308807

It's a miracle and just think at 3% growth the US is adding jobs......

H'm, interestingly Peter Schiff in his latest videoblog questions the "good" US figures by commenting that the GDP deflator implies only 0.25% per quarter which he believes is too low. If the deflator is too low then that means the growth figure is too high. From what I can see the current deflator in the UK is 1.4% which, again, seems too low to me so we may have the same issue which would result in an even lower figure than the -0.5% recorded in respect of the last quarter.

Are things much worse than we are being told? Somehow it wouldn't surprise me at all.

Share this post


Link to post
Share on other sites

H'm, interestingly Peter Schiff in his latest videoblog questions the "good" US figures by commenting that the GDP deflator implies only 0.25% per quarter which he believes is too low. If the deflator is too low then that means the growth figure is too high. From what I can see the current deflator in the UK is 1.4% which, again, seems too low to me so we may have the same issue which would result in an even lower figure than the -0.5% recorded in respect of the last quarter.

Are things much worse than we are being told? Somehow it wouldn't surprise me at all.

Did he offer what he thought the deflator should be?

Can anyone produce other growth figures using higher deflators to show what effect they have on the figures?

Share this post


Link to post
Share on other sites

Excellent! Obviously the snow missed them... :rolleyes:

Record snow again buries U.S. Northeast

Snow present in 49 of the 50 U.S. states

The US has had FAR worse snowfall than the UK.

The reality is that the US has had its HPC and their economy has corrected itself, allowing it to start growing again. The UK will only start to experience sustainable growth when house prices fall to affordable levels.

Share this post


Link to post
Share on other sites

Surely that would imply it's a short term success?

Measured in devalued dollars, yes. Just look at the spectacular growth Mugabe produced.

Thought experiment: suppose we scrapped the pound and switched to the dollar, without any change to £ prices/wages/etc. So average pay at a stroke "rises" from £25k to $40k (ballpark figures), and prices rise in line with that. If we call that a real rise of 60% in GDP then we see the honest effect of debasing the coin.

Thus QE obviously "works". And stopping it obviously hurts.

Share this post


Link to post
Share on other sites

Did he offer what he thought the deflator should be?

Can anyone produce other growth figures using higher deflators to show what effect they have on the figures?

No, but the US has suffered the same hikes in commodity prices as anyone else and the figure doesn't seem right, as is the case for the UK. I'm no statistician but these are calculated figures or figures based on surveys and, to this extent, may or may not be realistic. WRT the latest UK figures personally I take them with a pinch of salt because they are not consistent with other survey information coming being released.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.