Excerpt from my next newsletter that I am working on this morning:
On May 31, the Bureau of Economic Analysis said their second estimate of Q1-2012 GDP (Gross Domestic Product adjusted for inflation) growth increased at an annual rate of 1.9%. This was a downward revision of 0.3% from April's estimate of 2.2%. The estimates for prior quarters were unchanged.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, residential fixed investment, private inventory investment, and nonresidential fixed investment that were partly offset by negative contributions from federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
You can read the full press release at Gross Domestic Product, 1st quarter 2012 (second estimate)
How bad would this be if we actually had a balanced budget today?
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kirklindstrom.com
India's growth falls to nine-year low. India's Q1 GDP growth fell to a much worse-than-expected 5.3% on year from 6.1% in Q4 2011, with the farming, industrial and services sectors acting as drags. The corporate sector is experiencing its worst slowdown in recent times as confidence takes a hit from higher interest rates, policy mismanagement and political deadlock. India's BSE Sensex fell while the rupee hit a record low of beyond 56.50 to the dollar.
ReplyDeleteI'd like to see the President or some high ranking Fed official come out and say "You know what folks, we are out of control on spending, everyone must make sacrifices and we cannot afford to bail out economy endlessly with our deficit soaring out of control. The markets must self correct, no more QE or bailouts are forthcoming."
ReplyDeleteRIP - I do not see this happening as we have no leadership. China will, however, make this decision on our behalf when they publicly announce to the world that they are done with dollars.
ReplyDelete