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.