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Itr's All Fixed - Us Economy Grows By 4% Beating Expectations

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http://www.bbc.co.uk/news/world-28567689

"

US economy grows by 4% beating expectations"

Couldn't give a toss because my wageds won't go up 4% per year.

It's all meaningless propaganda, like those who worship the sky fairies capitalists worship some meaningless figure which also has no bearing on personal wellbeing.

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It's all meaningless propaganda, like those who worship the sky fairies capitalists worship some meaningless figure which also has no bearing on personal wellbeing.

Propaganda is not meaningless. What never fails to surprise me is the extent to which pseudo-scientific measurements are taken seriously. If one asks 'what, specifically, are you measuring?' - a can of worms is opened. The orthodoxy is that economies always grow - so, we adapt the thing we measure to ensure this presumption is validated.

Edited by A.steve

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But do economies always grow and in which way do they 'grow'. What is meant by grow? Is it just a measurement of turnover?

I am sure Woolworths turnover was looking good the week the sold off everything.

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They just kitchen sinked Q1. After the "weather" ;) sent the economy down the pan they moved a lot of Obama care related new costs (accounted as growth of course, despite in fact being a massive drag on the economy) and moved them into Q2 to make that quarter look better.

Either an economy that shrinks 3% one quarter and then grows 4% the next (annualised) is clearly not healthy OR they just make up the numbers!

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Looks like it "sprung" back into life in 2009, 2010, 2011 and 2013

And then collapsed again in the second half of the year.

1.5-1.6% growth for the whole of 2014 looks like ably confirming the non-recovery trend.

Despite the good news the economic recovery remains the weakest since the second world war. GDP has grown by just 1% in the first six months of the year. The pick up in the economy in late 2013 was wiped out by one of the harshest winters on record and even at 4% the pace of recovery remains sluggish.

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They just kitchen sinked Q1. After the "weather" ;) sent the economy down the pan they moved a lot of Obama care related new costs (accounted as growth of course, despite in fact being a massive drag on the economy) and moved them into Q2 to make that quarter look better.

Either an economy that shrinks 3% one quarter and then grows 4% the next (annualised) is clearly not healthy OR they just make up the numbers!

OR (gasp) there was awful weather in Q1. Oh yeah, there was. Strange that.

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More nonsense and spin from our transatlantic cousins.

The truth is not as impressive: Over Half Of US Growth In The Past Year Is From Inventory Accumulation

Alas, following today's "spectacular" 4.0% GDP print following the predicted plunge in the US economy in Q1, we can again conclude that not only has nothing changed, but what we warned in Q4 of 2013 is about to happen all over again, and the inventory overhang (which incidentally was estimated by the BEA and will certainly be revised lower next month) is about to slam future US growth.

http://www.zerohedge.com/news/2014-07-30/deja-vu-gdp-stunner-over-half-us-growth-past-year-inventory-accumulation

Edited by Errol

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Well, the markets appear confused in the US about this - first the soared on the news and now they are dropping on worries that IR rises will come sooner.

They are so confused these days - aren't we all - that they are no longer sure whether good news is bad or bad is good. Some of the HFT computers will be ringing in with stress soon.

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Well, the markets appear confused in the US about this - first the soared on the news and now they are dropping on worries that IR rises will come sooner.

They are so confused these days - aren't we all - that they are no longer sure whether good news is bad or bad is good. Some of the HFT computers will be ringing in with stress soon.

Rate rises to come? Neither sooner or later. Yellen the felon says ZIRP to be extended for some considerable time...

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

http://www.marketwatch.com/story/text-of-fomc-statement-on-interest-rates-2014-07-30

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The rate hikes will come out of the blue - wake up one day and they will have hiked the rates in some co-ordinated global rate hiking event.

When people say "Ah, you said that rates will not rise for some considerable time" they will simply shrug their shoulders before going into a small room and laughing loudly.

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price stability, - HIGH PRICES!!!

Price stability is anything other than deflation. If we see deflation we have to combat it immediately because we might end up with a barter economy if money becomes worthless!

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