July 31, 2009
GDP figures provided Obama with a convenient excuse to shovel a load of propaganda today. “In the Diplomatic Reception Room this afternoon, President Obama tried to put a positive spin on Gross Domestic Product numbers released this morning indicating that the economy contracted by -1% in the 2nd quarter of this year,” ABC News reports.
Obama said the GDP numbers are “an important sign that the economy is heading in the right direction and that business investment which had been plummeting in the last several months is showing signs of stabilizing.”
[efoods]But here’s what Obama didn’t say — the GDP is highly prone to revisions. The numbers may change plus or negative 2% or more over the next few months. As The Moderate Voice notes, “Q1 was revised to -6.4% from -5.5% respectively. So even though Q2 beat the consensus of -1.5%, overall we are in worse shape than anticipated. Moreover, Q1-Q3 2008 were revised from 0.9% to -0.7%, 2.8% to 1.5% and -0.3% to -2.7% respectively. These are massive downwards revisions and total a bit over 1.0% more contraction than previously believed.”
But what’s really funny — or criminal rather — is that the GDP does not take into account government debt. Obama cited his massive and unprecedented debt program — the “recovery” (or is it destruction) act, otherwise known as the “stimulus” (Orwellian no matter how you slice it) — as the reason the economy has “turned around.”
If you believe saddling the country — and future generations — with unprecedented debt (to be paid to the banksters into perpetuity), you may also believe that I have a time machine for sale and it is posted on craigslist.