MAGAnomics Winning – 2nd Quarter GDP Growth Revised Upward to 3%…

Despite the good news, the insufferable MSM are still trying to bury the cause and effect. In an effort to give a more precise picture I’m going to use a Reuters summary, and shift their text location to highlight what they bury and emphasize what they avoid:

WASHINGTON (Reuters) – The U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years, and there are signs that the momentum was sustained at the start of the third quarter.

Gross domestic product increased at a 3.0 percent annual rate in the April-June period, the Commerce Department said in its second estimate on Wednesday. The upward revision from the 2.6 percent pace reported last month reflected robust consumer spending as well as strong business investment.

Growth last quarter was the strongest since the first quarter of 2015 and followed a 1.2 percent pace in the January-March period. Economists had expected that second-quarter GDP growth would be raised to a 2.7 percent rate.

♦[…] Businesses helped to carry the economy in the second quarter, with spending on equipment jumping at a rate of 8.8 percent. ♦[…] Trade added two-tenths of a percentage point to growth. ♦[…] Government spending contracted for a second straight quarter. ♦[…] Housing was a drag on growth in the last quarter, with investment on home building contracting at a 6.5 percent rate.

[INFLATION]  Despite the acceleration in consumer spending, inflation remained benign in the second quarter. The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, increased at a 0.9 percent rate as previously reported.

Last quarter’s rise was the slowest in more than two years and followed a 1.8 percent rate of increase in the first quarter. The gross domestic purchases price index, another measure of inflation pressures in the economy, increased at a 0.8 percent rate as reported last month.

[…] Other data on Wednesday showed private employers ramped up hiring in August, adding 237,000 jobs to their payrolls. That was up from 201,000 jobs in July.

The ADP National Employment Report was released ahead of the government’s more comprehensive employment report on Friday, which is expected to show solid job gains in August and diminishing labor market slack.  (Reuters report)

MAGAnomics As Predicted in 2016

2016 […]  Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of an upcoming economic lag; which, rather remarkably I would add, is a very interesting dynamic.

Think about these engines doing a turn about and beginning a rapid reverse.  GDP can, and in my opinion, will, expand quickly.  However, any interest rate hikes (fiscal policy) intended to cool down that expansion -fearful of inflation- will take a long time to traverse the divide.

Additionally, inflation on durable goods will be insignificant – even as international trade agreements are renegotiated.  Why?  Simply because the originating nations of those products are going to go through the same type of economic detachment described above.

Those global manufacturing economies will first respond to any increases in export costs (tariffs etc.), by driving their own productivity higher as an initial offset, in the same manner American workers went through in the past two decades.  The manufacturing enterprise and the financial sector remain focused on the pricing.

♦ Inflation on imported durable goods sold in America, while necessary, will ultimately be minimal during this initial period; and expand more significantly as time progresses and off-shored manufacturing finds less and less ways to be productive.   Over time, durable good prices will increase – but it will come much later.

♦ Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any fiscal policy influence because inflation on fast-turn consumable goods becomes re-coupled to the ability of wage rates to afford them.

The fiscal policy impact lag, caused by the distance between federal fiscal action and the domestic Main Street economy, will now work in our favor.  That is, in favor of the middle-class. (full outline)

♦The Modern Third Dimension in American Economics – HERE

♦The “Fed” Can’t Figure out the New Economics – HERE

♦The “Fed” is Powerless To Control Inflation – HERE

♦Proof “America-First” has disconnected Main Street from Wall Street – HERE

♦Treasury Secretary Mnuchin begins creating a Parallel Banking System – HERE

♦How Trump Economic Policy is Interacting With The Stock Market – HERE

♦How Multinationals have Exported U.S. Wealth – HERE

♦How 4 or 5% GDP Growth is Entirely NOT Difficult – HERE

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This entry was posted in Budget, Donald Trump, Economy, energy, President Trump, Trade Deal, Uncategorized. Bookmark the permalink.

92 Responses to MAGAnomics Winning – 2nd Quarter GDP Growth Revised Upward to 3%…

  1. Sloth1963 says:

    Boo ya! Keep those engines turning 😊

    Liked by 17 people

    • fleporeblog says:

      The ECONOMIC TRAIN has left the station never ever to return again!!!!!

      Folks this is beyond HUGE. I knew they were going to readjust the 2nd quarter to be 3%. We will NEVER see a quarter over the next 8 years below 3%.

      Our President said during the campaign that he would get our GDP to 3% after his first year in office. People laughed and ridiculed him. Guess who isn’t laughing today. They are actually crying 😭 like they have never cried before.

      The 3rd quarter GDP is projected to hit 4% according to the Atlanta Federal Reserve. Couple that with another 4% for the 4th quarter and we hit 3% for 2017!

      What makes this even more amazing is the fact that the 1st quarter was a miserable 1.2%. Please keep in mind that Barry from Kenya 🇰🇪 was still our President for 20 days during that 1st quarter. Our President only had a little over two months during that quarter and used that time to begin implementing his agenda. Especially unleashing the BEAST that is propelling our Economic Train 🚂. ENERGY!

      1.2% + 3.0% + 4.0% + 4.0% = 3.05% or 3.1%

      Barry from Kenya 🇰🇪 averaged 1.55% for his eight miserable years as President.

      http://www.thegatewaypundit.com/2017/08/trump-factor-federal-reserve-atlanta-predicts-massive-3-7-gdp-third-quarter/

      From the article linked above:

      Barack Obama was the only U.S. president in history who did not deliver a single year of 3.0%+ economic growth.

      Obama averaged less than 2% growth in his years in office.

      According to Louis Woodhill, President Barack Obama left office with the fourth worst economic record in US history.

      Assuming 2.67% RGDP growth for 2016, Obama will leave office having produced an average of 1.55% growth. This would place his presidency fourth from the bottom of the list of 39*, above only those of Herbert Hoover (-5.65%), Andrew Johnson (-0.70%) and Theodore Roosevelt (1.41%).

      Liked by 12 people

  2. DHarvey says:

    WHodathunk The Donald would make this happen so quickly! MAGA on 🙂

    Liked by 12 people

    • Trumpmendous says:

      A bunch of “deplorables.”

      Liked by 12 people

    • Sylvia Avery says:

      He has exceeded my expectations in just about every way, except for swamp drainage. That has been a disappointment, but it is much worse than I realized and I remain hopeful. I love this President!!!

      Liked by 11 people

      • duchess01 says:

        If he had the ability to FIRE them like any other CEO – they would have been long gone and replaced – the SWAMP would be a lovely POND!

        Liked by 11 people

      • uvaldegirl says:

        Same here. I think he had to drain the swamp in his own administration and that is still ongoing, likely. It is worse than ever.

        Liked by 1 person

      • highdezertgator says:

        I guess you have to define the “swamp”… it way beyond DC… it is global. The MAGA Economic policy which is also his “foreign policy” has been pretty damn successful so far. The global economy is being reset leading to a major “what the hell just happened” in Foggy Bottom and K – Street… Regulations are being eliminated to remove the shackles of totalitarian big gubamint. Cold anger and 2018 will suck up and spit out the Uniparty slithering slime balls as they run into the MAGA election tsunami… Lead, follow or get the hell out of the way!

        Liked by 1 person

    • kriseton says:

      If Congress truly pushes through tax reform, I think we can get to beyond the 5%-6%. Once you give the middle class significant tax relief, spending will follow. Once you cut business taxes, hiring will follow.

      Liked by 9 people

      • duchess01 says:

        Sounds so simple, doesn’t it, kris! Why didn’t we think of that before – oh yes, that other guy hated America – President Trump loves America and wants to see us prosper!

        Liked by 6 people

    • fleporeblog says:

      DHarvey I honestly believe that our President was throwing out the 3% GDP for his first year in office for shock value. What his predecessor had done to our country and our economy was beyond criminal. The fact that he has a realistic chance to get to 3% with this incredible adjustment is a miracle from GOD.

      What excites me more than anything in the world is that our President has gotten us here without any help from the Establishment. If they implement his tax Reform and Infrastructure, the economy will be humming at 5% to 6% GDP. If Healthcare is ever done, watch out because 7% to 8% is ABSOLUTELY Doable

      Liked by 11 people

  3. bullnuke says:

    All this good economic news and it was achieved WITHOUT trillions spent on stimulating the economy. That the stimulus is still in the baseline budget just shows how the uniparty craves power. All that is ever required is the government getting out of the way. President Trump has proven that to all.

    Liked by 29 people

  4. Southpaw says:

    The swamp won’t like that we survived and thrived with two quarters of reduced government spending.

    Liked by 22 people

  5. nuthinmuffin says:

    floor it!

    Liked by 13 people

  6. Bouchart says:

    Lol, I don’t believe any figures this government puts out.

    Liked by 2 people

    • Peter says:

      You don’t have to, but there is a comparison pattern you can derive from the numbers and clear growth is taking place. Sundance does a great summary where if the numbers were fudged they would be immediately suspected.

      My $02

      Liked by 7 people

      • Orygun says:

        Exactly! Just looking at the number of local businesses with help wanted signs and the volume of commercial traffic that has increased it is obvious that business is picking up.

        I drove from Oregon to Texas several years ago and the areas that were thriving and the ones that were being crushed was obvious. Oregon and New Mexico had a pall over it and to me seemed almost identical. Utah and Arizona had the most thriving economy from the most amount of new construction and overall activity.

        It was an eye opener to me what different State level regulations could do to the economies of States separated by an invisible barrier. Shameful what the Dems are doing to the citizens that they purport to represent.

        Liked by 8 people

  7. Bree says:

    Jobs,jobs,jobs😀😀😀.

    Liked by 10 people

  8. lcpusa says:

    amazingly the uaw magazine came today…the anti nafta issue!

    doesn’t even mention Trump!

    Liked by 12 people

  9. Founding Fathers Fan says:

    The economy is getting better so ‘Russia, Russia, Russia’ and The First Lady wore high heels to board AF1.
    The crybaby media in action.

    Liked by 7 people

  10. ECM says:

    When it hits 5%, annual, they’ll be crediting witches and the favor of the gods in order to avoid crediting Trump…

    Liked by 9 people

  11. Minnie says:

    🇺🇸🦁🇺🇸

    Thank YOU, Mr. President!!!

    MAGA 🇺🇸
    COVFEFE 🦁

    Liked by 9 people

  12. rjcylon says:

    If “it’s the economy, stupid”, then Trump has already locked down his second term. I know that all the news wants to talk about is Russia or nazis, (because America prospering goes against their values) but I have to think if people are making money again they are smart enough to remember the difference between an Obama economy and a Trump economy.

    Liked by 10 people

  13. An American says:

    So it looks like us geezers, on a fixed income, are going to continue to “take it in the shorts”! Past 8 years, zero interest on savings. Now as the economy really gets going, we’re left at the station!

    ♦ “Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any fiscal policy influence because inflation on fast-turn consumable goods becomes re-coupled to the ability of wage rates to afford them.”

    Like

    • CharterOakie says:

      I hear you. But most important is to save the country for our children, our grandchildren and generations to come.

      Liked by 1 person

    • dekester says:

      Unfortunately ” fixed income” is just that.

      Successive governments throughout the Western economies have crushed those on fixed incomes. Sadly a number of seniors ” trusted” their politicians. Frankly they were conned.

      Many folks have made small fortunes over the last number of years. Simply by borrowing money ” on the cheap” ( 5 yr variable mtgs at under 2% in some cases.) and investing it wisely.

      Things are a changing though..hang in there, your President is trying to right the ship.

      Gold is over $1310 U.S. it has been rising steadily for months.

      God bless PDJT

      Liked by 3 people

  14. keeler says:

    Trump will never get to 1237 delegates
    Trump will never get to 270 electoral votes.
    Trump will never get the economy to a 3.0 GDP rate…

    On a more serious note, is the housing “drag” a bad thing? I remember hearing rumbles of another housing bubble some months ago. It seems to me contraction in new home construction combined with faster growth in other sectors would have some benefits, as it is an indication those other sectors are catching up and the overall economic system is diversifying- leading to a smaller dependence on home construction for US economic strength and reducing risk of another catastrophic housing bubble. Or is that an oversimplification from someone without a background in economics?

    Liked by 6 people

    • Hollywood Bungalow says:

      In many places there is a shortage of inventory and expensive land costs are driving up prices.

      However banks are still using strict underwriting criteria whereas the previous housing bubble was created by banks offering big mortgages to people who couldn’t afford them. This does not to be the case, thankfully, right now.

      Liked by 3 people

    • StuckInBlue says:

      I suspect part of the “contraction” is due to an increase in deportations, which will increase the supply of available housing and decrease the demand for more to be built temporarily.

      Liked by 3 people

    • Kintbury says:

      And he did it without any help from Congress. I think we should all write them and tell them apparently they are no longer needed.

      Liked by 4 people

  15. Has Obama, through surrogates, tried to take credit for this robust growth? For his entire 8 years he wasn’t responsible for anything that happened; it was “Bush’s fault”. The expansion didn’t begin until AFTER the election, when business and investors breathed a sigh of relief knowing that Hillary would not continue Obama’s ruinous policies, and began taking risks knowing that Trump was going to unleash the economy.

    Liked by 6 people

  16. chojun says:

    I think the reason why inflation is so flat is because of the retail Armageddon that is going on right now. Sundance, in an eariler post, you mentioned that businesses are focused on their price points at the moment. I believe this is because there is so much price transparency now with the Internet. That means that sites like Amazon (and Alibaba in Asia) will continue to be a very large deflationary force that will continue to confound the Fed for the foreseeable future.

    Liked by 1 person

    • WSB says:

      And I wonder about the fuel and food component. Especially with food and Amazon. How will Amazon affect local groceries? And when do these commodities come back into the inflation equation?

      And has anyone looked at their local restaurants’ menus in the last 6 months? Shocking.

      Like

      • chojun says:

        The overarching component with all these is energy. The energy question is why world-wide commodities don’t really exist outside of precious metals, etc. As a consumer of oil in Utah, a barrel of oil obtained from Wyoming is much cheaper than a barrel of oil obtained from Kuwait, even though oil is a commodity with prices set on a world market. No doubt US energy policy is allowing inflation to remain flat in a growing economy and creating deflationary conditions throughout the world – especially given Trump’s strategy of squeezing out economic adversaries.

        It’s becoming increasingly evident that global economic expansion from a globalist’s point of view required the US to curtail its economic output and growth and that’s how they accomplished that over the past 30 years – which is probably a contributing factor to why wage growth remained flat for the middle class for such an extremely long period of time. There’s no way that this type of condition could exist accidentally. It was planned and carefully managed, I believe.

        Liked by 2 people

  17. Curry Worsham says:

    Bsnbc is too busy blaming Trump for all things Harvey to even mention it.

    Liked by 3 people

  18. Michelle says:

    “Strongest pace in 2 years”. Notice they don’t say “highest rate.” They have to talk about “pace” so that Obama doesn’t look so bad.

    Liked by 2 people

  19. Dazza says:

    Best

    Presidency

    Ever!

    Thank God for PDJT, the Lion

    Liked by 4 people

  20. fleporeblog says:

    For those that go on Twitter, I want to share my responses to the Barry Lovers that are giving him credit. Feel free to use any of them! Based on FACTS!

    and I am sharing my write-up with them as well

    Liked by 3 people

  21. I think of the Fed raising interest rates without seeing the expected movement in inflation as akin to engineers in a control room looking a gauge indicating a dangerous condition, frantically adjusting the controls, not realizing the gauge they’re looking at is broken.

    Quantitative easing and the Obama stimulus primarily benefitted the government and financial sectors, not private sector production. The reasons why are many, but the Dodd-Frank law that choked consumer and business lending is the major reason why. Remember Jamie Dimon, CEO of JP Morgan, complaining about the trillions to lend in the private sector locked up by excessive regulations?

    The inflation the Fed is looking for is in the financial sector. Ask yourself, “why has the stock market blown sky-high, when over the same period GDP and economic growth has been flat?”

    Or, to put it another way, quantitative easing and stimulus benefitted Wall Street, not Main Street. And the Fed is watching Main Street while tinkering with interest rates, when they should be watching Wall Street to see the effects.

    When economic activity picks up, and quantitative easing ends, then you will see Wall Street and Main Street come back into alignment.

    https://www.cnbc.com/2017/07/14/jpms-jamie-dimon-blows-up-at-washington-on-earnings-call.html

    Liked by 2 people

  22. 99Problems says:

    Remember all those times the forecast was revised “upward” during the Obama years?
    Me neither.
    They always came out with rosy predictions…especially at election time…only to revise them down when the real numbers came in. #DrainTheSwamp

    Liked by 1 person

  23. Craig W. Gordon says:

    Trump waved his ‘magic wand’ AND poof! The GDP (estimate) raised.

    Liked by 1 person

  24. WeThePeople2016 says:

    Notice how they say strongest pace in the past 2 years. Not. Try in the past 8+ years.

    Liked by 3 people

  25. silverlakela says:

    LOCK HER UP!!!

    Compel The F.B.I. To Release All Records Pertaining To Hillary Clinton’s Personal Secret Server Email Investigation

    https://petitions.whitehouse.gov/petition/compel-fbi-release-all-records-pertaining-hillary-clintons-personal-secret-server-email-investigation

    Like

  26. Impossible says:

    Your articles are so well-informed, and balance speculation with concise and beautifully articulated underlying arguments. You can add this (generalist) observation to litany of comparatives viz., American to Asian (as well as a fair number of European) markets. Traditionally, under our free-market system failure was not a game ended. Our rags-to-riches stories contain many examples of entrepreneurs who fail many times before success, shun scorn and ridicule, and then reap accolades when they finally make it. Many cultures tolerate only a single failure; once this occurrs there will be no more opportunity. It’s in American DNA, and it has lead to some of our greatest achievements.

    Liked by 1 person

  27. Robert says:

    This is proof obama and company are treasonous criminals against the United States. It is a CRIME they all are not placed on trial and thrown in prison forever. I would prefer myself a firing squad or gas chamber but whatever….

    Liked by 1 person

  28. hugofitch1 says:

    Thank God for that Obama nine year plan.

    Like

  29. TwoLaine says:

    And yet Faux would have us believe that 2/3 of the country think President TRUMP Is doing a bad job, and dividing our country. Of course that is on the say of lesss than 2k. Woot! Woot! SO scientific. NOT.

    Like

  30. highdezertgator says:

    Americans are realizing it is all about the Faith in Freedom… MAGA is the “good” and the motivator.
    “Freedom necessarily means that many things will be done which we do not like. Our faith in freedom does not rest on the foreseeable results in particular circumstances but on the belief that it will, on balance, release more forces for the good than for the bad.” F.A. Hayek

    Like

  31. Tim Tarr says:

    Just watch the magic. FERC is now approving pipelines. By late fall 2019 >10Bcf/day of additional capacity. That’s more than 1 trillion BTU a day. That’s just natural gas out of Western PA, Northern WV and Eastern OH.

    Yes this was all in the works Under O’Schome but foot dragging almost killed it. Similar to Keystone and Dakota access oil pipelines.

    If those rust belt states get their tax and spending ways under control they would boom like 1900 again. If they don’t the SE and MidWest will get all the action.

    Like

  32. Patriot1 says:

    Wow, now people believe the lying fed and their numbers? Nothing a President does historically affects the economy for at least 6 months. The financial system is completely screwed STILL!

    Like

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