January 30, 2013
Editor’s note: Establishment economists get paid to make predictions contrary to reality in order to keep the Big Casino working. So when their Pollyanna predictions do not pan out, they are surprised. Anybody who has watched the real inflation and unemployment numbers knows the “recession” didn’t end. It’s going strong and is more accurately defined as a depression.
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That’s a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.