Sorry guys, the clock has rung. It’s not ringing any more, it has rung and the spring-powered alarm has run out.
Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 1.3 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.
That’s a monstrous revision to the first quarter. For those who forgot, we were told it was 1.8% on April 28th.
Why the major change? Annual revisions. The answer is this: What recovery? Now I have to go back and revise all my working tables.
There is no recovery to speak of. Four years into this the policies of the government and Fed have failed.
It gets worse:
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.2 percent in the second quarter, compared with an increase of 4.0 percent in the first Excluding food and energy prices, the price index for gross domestic purchases increased 2.6 percent in the second quarter, compared with an increase of 2.4 percent in the first.
Your standard of living is being shredded.
Real personal consumption expenditures increased 0.1 percent in the second quarter, compared
with an increase of 2.1 percent in the first.
Spending has effectively collapsed.
This puts into stark relief the reality of the government deficit spending – it is doing nothing more than covering up an economic Depression, and the so-called “exit plan” – that private consumption, investment and borrowing will “take the baton back” is not working.
The deficit spending must stop now before the tax base folds back and forces a disorderly collapse.
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