The U.S. Commerce Department numbers are in and the nation′s Gross Domestic Product, GDP, shrank 0.1% in the Fourth Quarter of 2012. A lack of consumer spending was blamed due to Hurricane Sandy as the Conference Board shows a decline in confidence, resulting in slower growth. The Barack Obama White House went on the defense, blaming Republicans for stirring up more uncertainty during the Fiscal Cliff debate. The Left-Wing Media also tried to spin a happy face citing other economic data, such as house sales. Some experts, like former Enron economist Paul Krugman, point to less government spending as the main culprit for the decline in GDP. But the bitter reality is that the Obama Recovery never happened. What little GDP growth there has been over the past four years of the Obama administration is by and large due to monetary policy from the Federal Reserve Bank which is pumping cheap money into the economy, causing more inflation than GDP growth. Since taking office, the nation′s GDP has been shrinking consistently in value.
This may seem odd given that the Dow Jones Industrial is nearing the 14,000 mark, but Wall Street is simply insane. How else can one explain the stock market reaction to companies like Amazon, whose numbers show less profit and yet the stock price has been climbing. Much like the typical reaction of stock prices going up for companies who announce more layoffs. So as long as Ben Bernanke keeps interest rates below 1% and prints an extra $85 Billion dollars per month to purchase U.S. Treasuries and private securities, Wall Street will go along for the ride.
Despite the good news on the equity markets, we still have several deep holes to climb out of. Unemployment is still a major problem. While the White House likes to claim that they have created some 5 million jobs in the past four years, they fail to talk about the 8 million fewer Americans in the Labor Force pool. Since August of 2010, the Labor Department, through its offices of the Bureau of Labor Statistics, has been steadily shrinking the size of the Labor Force in order to make the national average for unemployment numbers appear better than they really are.
The extent by which Obama defenders go is quite remarkable. For example, during a recent interview with Bill O′Reilly on his Fox News Channel show, former Secretary of State Colin Powell said his main reason for voting for Obama in 2008 and 2012 was because of Obama′s economic policies. When ′The Leprechaun′ retorted with the facts that employment and income levels for African-Americans, as well as the entire Middle Class of America, has gotten worse under Obama, Powell had no rational explanation. He, like the rest of the Far-Left, are in total denial. Much like when Sen. Mary ′I-Goofed-on-Katrina′ Landrieu (D-LA) tried to shrug off any spending problems of the federal budget on the bias of Fox News.
During the 8 years of the hated George W. Bush, the federal government spent an average of $2.5 Trillion dollars per year. Barack Hussein Obama has averaged $4.6 Trillion dollars per year, an increase of about 40%! Obama has already added more to the National Debt than the first 42 presidents combined, as well as more debt that Bush′43 did in his 8 years. As the impact of ObamaCare and other boondoggles are totaled, Obama will surpass all 43 presidents combined by the time he leaves office in 2017, leaving America some $20-plus Trillion in debt.
So it is no wonder that the Gross Domestic Product shrank in the Fourth Quarter of 2012. The Commerce Department reported the bad news yesterday. Whether we will see another contraction in the 1st Quarter of 2013 and make this an ′official′ recession does not really matter. The slower growth and less consumer spending are still signs of a weak economy under Barack Obama. His White House can crow all they want about some positive indicators, but the bottom-line is that GDP growth is not keeping up with the inflation being caused by the monetary policy of the Federal Reserve Bank.










January 31st, 2013 at 10:47 am
WASHINGTON (Reuters) – “American incomes rose in December by the most in eight years, a positive sign for consumer spending that could help the economy sustain momentum early this year.
Personal income for Americans rose 2.6 percent last month, the Commerce Department said on Thursday. That was the biggest increase since December 2004 and well above analysts’ expectations for a 0.8 percent gain.”
January 31st, 2013 at 11:09 am
I’m not sure if I should blame Bush or praise Obama for these results. I’ll check the MSM and be right back.
January 31st, 2013 at 1:38 pm
Yeah, get a hold of these “people” trying to tell us everythings alright.
“Personal income for Americans rose 2.6 percent last month, the Commerce Department said on Thursday. That was the biggest increase since December 2004 and well above analysts’ expectations for a 0.8 percent gain.””
Yeah, right.
Last year a 5 lb. box of chicken thighs cost 4.99-retail.
Today, the same box is 9.00
Need I list the hundreds of other examples that make you simply wrong ?
True, lots of peoples wages have increased due to simple pay structures.
My wife, a retail cashier, received a structured raise of about .25 an hour, an extra 10.00 bucks a week,average 52 more bucks a year.
Our insurance went up 20 bucks a month,auto ins 50 bucks a year, gas went up costing us an extra 40 bucks a month, our property taxes went up 200 bucks a year,our grocery bill went up about a hundred a month,(1200 a year) I priced my implants at 4000 bucks last year, upon completion this year cost me 5000.
Stop insulting our intelligence…PLEASE !
January 31st, 2013 at 1:40 pm
520 a year, not 52, sorry.
January 31st, 2013 at 1:40 pm
And RP no longer gives cash prizes.
January 31st, 2013 at 1:56 pm
RightPundits writers seem to share a consistent pattern. There’s a 1 or 2 paragraph presentation of the argument or theme, a photo or caption in the middle, then an all out screeching howl-at-the-moon diatribe below.
So, the presented argument per Andrew Zarowny is that the GDP shrank 0.1% due to a “lack of consumer spending” because “Hurricane Sandy” which he backs up because “the Conference Board shows a decline in confidence” as the factual culprit of slower growth. And this has to be true because well damnit, Krugman was an Enron economist and the left media spins and that any recovery we’ve seen under Obama is a hoax, or something. And after Obama “taking office, the nation′s GDP has been shrinking consistently in value” but we should ignore previous numbers that defy that because well, that just doesn’t supports the feel good theory that “the Obama Recovery never happened”. It’s the usual “heads we win/tails you lose” logic. And this is before we move to below the photo to the hate fest/non sequitur unhinged section,
The argument that the GDP drop is attributable solely to cuts in government spending has considerable merit and what we’re seeing is a prelude of the GOP sequester. According to the Bureau of Economic Analysis, fed gov consumption spending and gross investment was down 15% n the 1/4 quarter compared to +9.5% in the 3rd, national defense was -22.2% compared to +12.9%, non defense +1.4% to a previous +3% and real state and local government consumption expenditures and gross investment -.7% compared to a +.3%. The report also states that non residential investment, and business investment were all up. These numbers are real and consistent with a great deal of analyst from both parties, Krugman or no Krugman.
Macroeconomic Advisers predicts the sequester will shrink .7%of GDP growth this year. The Bipartisan Policy Center predicts it will kill over 1 million jobs. Center for American Progress economist Adam Hersh says “we will have slower economic growth and job creation this year and in the future”.
In the meantime, Republicans continues to filibuster the American Jobs Act which would create anywhere from 1 to 3 million jobs and boost the GDP anywhere from 1.5 to 2.5%, depending on the many sources that I would gladly provide.
January 31st, 2013 at 2:26 pm
“RightPundits writers seem to share a consistent pattern. There’s a 1 or 2 paragraph presentation of the argument or theme, a photo or caption in the middle, then an all out screeching howl-at-the-moon diatribe below.”
And then you try to pump us full o crap.
All your bullsht (yes, I read it) aint worth a hill of beans in the face of us paying 6 trillion bucks for what amounts to nothing really.
Krugman is a proven liar.
January 31st, 2013 at 3:02 pm
Well, instead of stimulus, assisting the auto industry or extending unemployment benefits we could have simply allowed GM and Chrysler go bankrupt, eliminated numerous governmental agencies (especially Planned Parenthood and PBS, not because they are expensive, but because we simply don’t like them) cut all Medicaid (hey, that’s what emergency rooms are for) and limited access to food stamps (is food really necessary?). We also have to eliminate any assistance for students as we already have too many educated people and it is really nothing but indoctrination into a progressive mindset. Let the rest of the world waste their time on school.
Yup, straight austerity (well, unless it is military pork). Isn’t that historically what you do when handed a deep recession?
January 31st, 2013 at 3:11 pm
Planned Parenthood is not a government agency, is supposedly a private business.
January 31st, 2013 at 3:48 pm
Okay, cut federal funding for Planned Parenthood.
Better?
January 31st, 2013 at 3:50 pm
I got an idea.
We could sell a bunch of tanks to Egypt and let them pay us with the 2 billion a year we give them.
I’m sure we’ll find some way to put that in black ink.
“Well, instead of stimulus, assisting the auto industry or extending unemployment benefits we could have simply allowed GM and Chrysler go bankrupt,”
Nice try.
The plan was for a structured bankruptcy allowing them to recover at their own cost and discretion of the consumer instead of bailing them out by force.
” eliminated numerous governmental agencies (especially Planned Parenthood and PBS, not because they are expensive, but because we simply don’t like them)”
The government under power of any majority should never be allowed to operate media.
It defeats the whole purpose of a free press.
But, then again, as it stands with 75% of those in media being registered democrats what difference does it make ?
“cut all Medicaid (hey, that’s what emergency rooms are for)”
Especially for illegals who cost us 300 billion a year. A trillion every three years.
” and limited access to food stamps (is food really necessary?).”
Yes, the requirements are a joke and under Obama been laxed even more to the point more people use them more than commensurates with the actual need.
” We also have to eliminate any assistance for students as we already have too many educated people and it is really nothing but indoctrination into a progressive mindset.”
Bingo ! We have a winner !
Bout time you realized why liberals are such avid proponents for public education.
Tell me.
Whens the last time a liberal speaker was shouted down, chased off a public campus with pies flying over their head ?
“Let the rest of the world waste their time on school.”
Actually the most valuable immigrant these days comes from Asia as most of them hold one or more degrees in computer science.
Hardly the useless batch coming from our liberal campuses who excel in social sciences and green crap.
“Yup, straight austerity (well, unless it is military pork). Isn’t that historically what you do when handed a deep recession?”
See Egypt paragraph above
January 31st, 2013 at 4:01 pm
Clearly we have a Hoover in the White House. People were smarter back then. Hoover got fired.
January 31st, 2013 at 7:49 pm
It’s not a matter of better, it’s a matter of right. This is RightPundits.com.
February 1st, 2013 at 7:15 am
Actually, I did make a slight error, probably hitting the wrong key. Obama has averaged $3.6 Trillion per year in spending, not $4.6T. But $3.6T is still a 40% increase above the GWBush average of $2.5T/yr. So I did get THAT part correct!