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R K

U S Growth Revised Up To 3.9% For 3Rd Qtr

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http://www.marketwatch.com/story/us-growth-in-third-quarter-raised-to-39-from-35-2014-11-25?link=MW_latest_news

WASHINGTON (MarketWatch) - The economy expanded even faster in the third quarter than previously reported, offering fresh evidence that the U.S. entered the final months of 2014 on an accelerated track. Gross domestic product rose by a 3.9% annual pace in the period running from the beginning of July to the end of September, the Commerce Department said Tuesday. Initially, the government had said the economy grew by 3.5%. In the past two quarters, GDP has grown by an average of 4.2%, the strongest six-month stretch since the middle of 2003. Consumer spending was revised up to 2.2% from 1.8%, while the increase in business investment in equipment was raised to 10.7% from 7.2%. Companies also boosted inventories, which add to GDP, by $79.1 billion instead $62.8 billion. On the downside, export growth was lowered to 4.9% from 7.8%. Imports fell at a 0.7% annual rate vs. a prior estimate of 1.7%. Inflation as measured by the PCE index was little changed, rising 1.3% in the third quarter.

So nominal gdp is up well over 5%.

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All this growth with low wage / part time jobs. It's truly a miracle or fraud.

or an indication theres still slack to be used up. Wages arent linear.

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http://ivn.us/2014/08/11/really-regained-jobs-lost-recession/

According to a report from the National Employment Law Project (NELP)

By these numbers, lower-wage jobs are the bulk of the recovery. These are jobs that have median hourly wages between $7.69 and $13.83. With wages that low, it is likely that the person has a spouse that is making better money or the person has a second job and is possibly on welfare.

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Happy clapy talk is the MO ... nominal GDP 5% + ..whats the IR`s doing at near zero%

When IR`s are 3% + then we will be talking recovery

preferable to -5%

Agree several years to go yet (all else equal)

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A bigger debt will be required next year to you the interest on the debt borrowed this year.

It's exponential!

It will get exciting if interest rates were to generally rise because the exponential nature of the debt would need to be steeper to pay the accumulated interest.

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A bigger debt will be required next year to you the interest on the debt borrowed this year.

It's exponential!

It will get exciting if interest rates were to generally rise because the exponential nature of the debt would need to be steeper to pay the accumulated interest.

A runaway debt spiral. That's why the next UK rates move will be down (looser) not up (tighter). Better believe it..

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A runaway debt spiral. That's why the next UK rates move will be down (looser) not up (tighter). Better believe it..

Policy rate is real negative in any event now.

Agree it is surprising Carney is happy to permit inflation to run below target for so long without easing further though. I can only think that he'd rather wait to see who will form the govt in 6 months and what the fiscal stance will be before committing to more QE or whatever they might replace it with.

Clearly UK growth though isn't as strong as in the US where Bernanke/Yellen have been pretty successful at getting nominal GDP back well above 5%. As wage rises start to broaden and deepen it should start to look much healthier again.

Edited by R K

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If you don't mind me asking, what do you mean by over 5%? The US GDP numbers are quoted as an annulised rate, so they need 4 quarters of 5% growth to get 5% growth over a year. Perhaps I've misunderstood sonething though.

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US con/con swoons in November. Last two peaks 1999, 2007...

(Reuters) - U.S. consumer confidence fell in November to its lowest level since June as optimism waned in the short-term outlook for business conditions and jobs, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes fell to 88.7 from a downwardly revised 94.1 the month before. Economists expected a reading of 96.0, according to a Reuters poll.

October was originally reported as 94.5.

"Consumers were somewhat less positive about current business conditions and the present state of the job market; moreover, their optimism in the short-term outlook in both areas has waned," Lynn Franco, director of economic indicators at The Conference Board, said in a statement.

http://www.reuters.com/article/2014/11/25/us-usa-economy-confidence-idUSKCN0J91O920141125

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Edited by zugzwang

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