25 June 2014 (10:00 UTC-07 Tango)/26 Sha’ban 1435/04 Tir 1393/28 Geng Wu 4712
The 1st quarter of the 2014 U.S. economy went into the shitter! Zero Hedge is calling it “Total collapse”!
The gott damned main stream news media is blaming the drastically revised Q1 GDP data on winter weather! However, if you read my Job Losses & Store Closings reports you’ll see that the healthcare industry has been killing thousands of jobs, no thanks to Obama Care.
Zero Hedge also blames the crashed GDP numbers on Obama Care culling healthcare jobs, saying Obama Care subtracted $6.4-billion USD from Q1 2014! This is based on the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) third (aka final) revised Healthcare Services Contribution to GDP data.
It’s interesting that in prior Q1 2014 revisions the BEA showed huge gains due to Obama Care, but in their “Third Revision” the BEA shows Obama Care pushed Healthcare Services GDP into the Red by $6.4-billion! It ain’t the gott damned climate change you numb nuts main stream news media!
But wait, there’s more! Despite the main streamer news constantly reporting that consumer confidence is up, the truth is it’s way down! The BEA reports consumer spending for Q1 2014 dropped below the Q4 2009 Recession data! Consumer Consumption was only 0.7%! (again, read my Job Losses & Store Closings and you’ll see many business owners have been blaming crashing sales on their demise)
The result of citizens with no jobs and no money to burn resulted in total Q1 2014 GDP dropping by 2.9%, I believe we’re in negative Depression level numbers folks! According to what I learned in my college economics courses, anything at 3% or more is considered growth, 2.9%-0% is stagnation, once you go negative you’re in a Recession/Depression.
Main stream news media use their rule that if you get two or three quarters in a row of negative GDP then they call it a Depression (lets see if that happens this time). True economists try to avoid declaring a Depression, because they see so many more variables than the news media reports. They prefer to go by GNP (Gross National Product), but basically if GDP (Gross Domestic Product) drops by 10% or more they call it a Depression.
The Q1 2014 GDP revision has the biggest disparity between the first report and the third (final) report, since 1976!
Here’s more details from the BEA:
Personal spending increased 1%, but total domestic sales dropped 1.4%. This is because of inflation; Prices paid by shoppers increased 1.3%. In other words, people spent more money but got less in return!
And people had less money to spend, domestic income dropped 2.6%!
Commercial property/asset investments decreased 1.2%
Exports decreased 8.9% (this is a biggie, it means the U.S. isn’t selling anything to other countries), and the value of U.S. exports dropped by 1.7%, or $73.6-billion!!!
Federal government spending increased by only 0.6%, despite corporate taxes paid increasing by $27. 8-billion!
Increase in corporate taxes might have contributed to a decrease in dividends paid out to investors; a decrease of $87.1-billion!
Profits for financial corporations (Too Big to Jail banks) dropped $52.6-billion!
Profits from production dropped by a sickening $198.3-billion!!!
GNP, products and services, decreased 3.6%
“Our ideals and principles, as well as our national security……..That’s what makes America different. That’s what makes us exceptional.”-Barack Obama, 10 September 2013