The Bureau of Economic Analysis (BEA) released the First Quarter GDP figures today [DATA HERE] showing the U.S. economy contracted -1.4% in the first quarter.
Gross Domestic Product (GDP) is the dollar value of all goods and services produced in the economy, minus the dollar value of goods and services we import. The percentages discussed are percentages of change over time.
The first quarter result was an annualized rate of negative 1.4 percent, meaning the U.S. economy is shrinking. However, this should not come as a surprise as the primary driver of our GDP is consumer spending. With everything costing more, less stuff is purchased. Less stuff purchased leads to less stuff generated.
While the first quarter result of -1.4% is not a surprise, in the commonsense perspective, the fact that BEA didn’t revise the fourth quarter result of +6.9% is a little eye opening. There’s no way in an apples-to-apples valuation the U.S. economy goes from +6.9% to -1.4% in one quarter. Instead, what we are seeing is the effect we mentioned when the Q4 result was announced. The BEA is modifying their assumptions by increasing the inflation rate in their calculations of the value of goods and services. They really didn’t have a choice.
You might remember my prior opinion that the Q4 numbers were very overinflated because of two factors: (1) they underestimated inflation; and (2) the December 2021 import data from the Port of Los Angeles (POLA) was missing [NOTE: remember, Buttigieg was there in November and POLA supervisors are on team Biden]. I said at the time that if my hunch was correct the first quarter 2022 import data would be magnified by the December POLA data being added. Remember, imports are a deduction to the GDP equation.
Well, what shows up in Q1? A massive increase in first quarter import data that surprised everyone. Go figure… lol.
Let’s look at the data
♦ {TABLE 1 TOP LINES} We can see the economy contracted by 1.4% overall.
When you look at the +4.1% growth in durable goods we must factor in the BEA inflation assumption. Did more durable good units get sold, not likely. It’s likely less units sold but at a higher price, therefore the aggregate value of the durable goods gives a false impression of an increase.
Consider nondurable goods declining by 2.5%. Did less food, fuel and energy get consumed at higher prices? Or was the inflation assumption wrong?
Also check out the Exports change from Q4 (2021) to Q1 (2022). From +23.4 to -9.6. That’s a big change in exports.
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♦ {Table 4 Tells a story} Now we are looking at prices.
The value of our exports leaves the U.S. carrying the increased rate of U.S. inflation to produce them. A whopping +22.9% in price.
However, the value of the imports (again in dollars) is only 15.9% higher.
All things being equal, there’s a 7% price difference between exports and imports.
Inflation is high globally; however, inflation is higher here in the U.S. than overseas.
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Remember, the GDP isn’t a measure of the actual outputs of stuff created, the Bureau of Economic Analysis is only measuring the aggregate value of the stuff, ie. what it’s worth.
- 20 trillion units at $1.00 per unit equals $20 trillion dollars.
- 20 trillion units at $1.05 per unit equals $21 trillion dollars.
- An increase of 5% in economic valuation (GDP), but we haven’t created a single product more.
Did our economy contract by only 1.4% in the first quarter? Or are we seeing inflation continually skewing the valuation of goods and services, while the actual outputs in the economy are shrinking by much more?
Did you pay 20% more at the grocery store and leave with more food stuff? Or did you pay 20% more at the checkout and leave with less food stuff than previous?
I think we all know the answer to those questions.
Checkbook economics is the only economics that matters.
Why doesn’t some WH reporter (maybe Doofy can do it) ask Biden what he’s doing to make sure there is no food shortage in the US?
Because…
a. He won’t remember he said anything about food shortages. (see comment on assassinating Putin)
b. He’ll just lie and say it’s transitory and no big deal. (Not joking, C’mon man)
c. Whatever he says, the media will back him up.
d. New Homeland Security Ministry of Truth will delete the question and jail the questioner.
They asked Tuesday I think, and were retorted with ‘we don’t think there’ll be a food shortage.’ Problem is that they are incapable of thought. They off-loaded that ability to their masters.
I have a years supply of food, I wont be spending much time at the supermarket.
Agreed, but if I can’t find a local dairy outfit, I may not have the luxury of fresh whole milk, which I love.
Kratky grow pots may be able to provide fresh greens and veggies, yet you need fertilizer.
Probably best to use container and grow bags, raised beds, etc.
You can buy a 50 lb bag of powdered whole milk, Price was around $200.
It said it was around 26% fat so I calculated how many gallons it would make by figuring whole milk at 3% which came out to 8.66 then multiplied that by 50 giving me 433 lbs of finished product. Water is 8.3 lbs per gallon so that would be 52 gallons. Price per gallon would be roughly $3.85 before shipping cost of the bag.
Where can you buy whole powdered milk in 50 lb bags? I contacted every supplier of whole powdered milk in both the US and Canada, and was told the entire supply for the next couple of years has already been purchased by China mostly.
Try here — https://www.webstaurantstore.com/whole-milk-powder-28-5-fat/874992086.html
or here — https://www.bakersauthority.com/products/whole-milk-powder
If everyone horded food like you, a lot more people would Starve.
This is just a dumb comment.
Why? Doesn’t sound dumb to me. Just basic math
No food, no ammo, no sound money, bad place to be today.
Dumb? You may have to cut off your other ear and eat it!
Just because I can figure things out and plan ahead does not make me the problem.
Because I horded food and am not buying fuel to go to the supermarket, somebody else has fuel so they can go to work!
Besides, everyone knows humans are carbon emitters and we need to achieve zero carbon. If 200 million people starve to death, that will be a great achievement towards saving the world. Trust the science.
If the smart ones survive and the stupid ones perish, then we have experienced Darwinism.
Dead people … dead from starvation … don’t drive, and don’t use fuel.
say … are you the reason there was no toilet paper at the start of the plandemic?
Wasn’t me. I just poked a hold in the bathroom screen, ran a garden hose through with a sprayer attachment on it.
Lol!
Ah, a diy bidet..
Wow, you’d really hate me.
I began stocking up 8 months ago and I am topping off the last few things now. Anybody else who has done the same will not be the reason for food shortages later this year.
And remember… FJB caused this.
I changed addresses.
I refuse to pay $15.00 for toilet paper.
I’ll be selling mine for 1 silver eagle per roll.
Plus they don’t care.
Why bothering asking the question?
Actually doing something in the economic interest of American citizens runs counter to everything the globalist tyrants stand for.
It would be like Pres. Trump doing a promotional tour for Obamacare.
They think like the ivory tower college instructors who taught them that the sovereign nation state is obsolete along with the concept of elections, whereby the those in government work for the voters.
Can’t have those stinky deplorables sending them back to their states to practice law and sell insurance.
The goal is to bankrupt the US, stop our production of energy, and flood the country with illegal trash.
Stop our production of everything else they can too. Joe’s bosses around the globe demand it.
Weather it’s giving away our money to Zelensky, or the Soylent Green New Deal, etc etc etc.
Everything those at the levers of power are doing domestically indicates the intent is to destroy the United States economically while at the same time diluting the vote of the legal citizenry and bleeding them out financially.
They have already demonstrated the lengths they will go to maintain power and achieve their goals.
They are NOT going to stop until they are STOPPED.
I predict increasing censorship by alphabet agencies and more electoral irregularities.
This!!!
Talk to the Hand!!
There isn’t going to be a shortage of incredibly expensive food.
Every farmer I know and I live in the heart of it, is not going to cut back one acre because of higher input cost. With the increase of product price, they are maximizing production not minimizing production.
The one important caveat would be irrigation water shortage due to drought. If anything, I see a possible impending food surplus rather than a food shortage.
You need to remember we have a reporting media who don’t know a bull from a steer or a milk-cow from a bale of hay.
At this point, what difference does it make? Election rigging failed & Trump got in anyway! The Pandemic didn’t kill off the world as expected. Illegal immigration is taking way too long to finish off Europe and America. The shutdown of the petroleum industry isn’t having the expected results yet. The vaccines of Fauci & Gates isn’t working fast enough to kill everybody. The Bird Flu won’t do the job unless it jumps to humans. If they could just get a world-wide thermo-nuclear war going; now THAT will surely do the Depopulation the Dims want. Again; At this point, what difference does Joe Biden words make now? The Democrats are psychopaths driven by Obama & BFFs to bring on Depopulation since they can’t remake the World as they want. “If They can’t control the World; Nobody will”. And Washington DC twiddles it’s thumbs!
It is by design so that you won’t get an “answer.” If you are still counting on the government, then good luck.
JOE’s detumescent economy.
JOE’s donthaveacent economy.
or “Joe’s doesnthaveaclue” economy
So when inflation eases in May-June due to the year-over-year comparison (e.g., bad inflation started last May-June and the increase this year will be less – see SD articles) will the price of goods produced decline a bit more? Fewer items produced but lower “inflation” results in lower price of goods produced compared to prior year. If so, I would expect the GDP to drop even more significantly. Import prices will go up and I would expect the number of items imported to not decrease enough to offset the reduction in items produced. Wonder how the BEA will cook the books?
because its just percentage increase of decrease from the previous year —- the price in the future can increase by 5% and it still be less than the 15% jump this year.
Product cost a dollar – goes up to 1.15 = 15% increase; now add another 10% to 1;15 – and you get a -5% a decrease in inflation!
(15% last year; only a 10 percent increase on top of that ‘previous 15% inflation’ but its actually a SMALLER INCREASE that the 15%… 10 increase this year is less than 15% increase the previous year – its only 10% more and not 15% more AGAIN so its a DECREASE inflation)
See the perversion?
You can always use the peanut indicator. How many peanuts you can buy for a dollar.
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Figures never lie, but liars figure.
Something my dad always used to say . . .
Repeat after Psaki…. “Contraction is Growth”.
“Lower your expectations”
“The new normal.” Is there some way we can choke off the food supply to the DC insane asylum?
yes. yes, there is a way to do that.
the more important questions is whether we will or not.
Stopping them from eating might be a better siloution…..
Why does the space between the top of my head and my umbrella keep increasing?
“Those are high class problems”
So are we still trying to spend our way out of this inflation situation?
some of the squad members have actually said, on the record, that all it takes is to print more money and give it away so that the higher prices become affordable….
“Eat sawdust, Filthy serfs.”
Eat lead, Filthy tyrants…
that is where they get the idea of higher taxes to reduce inflation LOL…..after FLOODING the economy with unsupported fiat currency the government goes in and collects some of that excess from the citizens….makes sense….to them
“War is Peace” “Truth is lies” “Freedom is slavery”
?c=2
And it’s worse than even BEA is spinning it. BEA is politicized as much as all the others.
They always quietly adjust down later for a Democrat administration.
And always quietly adjusted up later under Trump.
We are probably looking at a – 1.6 t0 -1.8% drop.
And, now there is this:
https://continentalpublicbank.com/
Great idea. I wonder when the communists will shut them down?
Wow. We’re returning to the post-civil war days of individual state-chartered banks, each with their own currency, no central exchanges, often no reserves. Back to the future; dontcha just love it.
🎶“Welcome back, your dreams were your ticket out
Welcome back, to that same old place that you laughed about”🎶🎶🎶
sweathogs became journalists and the left
This is what is needed.
Biden is Bringing the Pain to America.
And he is very successful at it.
Biden’s success with it is in direct proportion to the dumb and stupid “Useful Idiots” Libtards.
Don’t worry, 33 billion dollars thrown at the Ukraines will fix that inflation!
/s
And suspending student loans.
Plus debit cards for JoBama’s illegal friends.
And Smartphones!
and you are also paying for their
housing, medical care, education, day care, cell plans, legal aid, food stamps (SNAP), utility bills, money for household goods, vehicles or other transportation (ubers, plane and bus tickets), money to start businesses and probably more I missed.
President Xi Biden is proud of his accomplishments
Followed by the question is the US’ new digital currency gold backed?
https://bmg-group.com/it-is-just-a-matter-of-time/
It won’t be long before the money printing resumes.
https://www.zerohedge.com/economics/oops-our-bad-imf-director-admits-we-printed-too-much-money
These people are either wildly incompetent, or they are lying to you.
Either way, they are “bad economists” as defined by Frédéric Bastiat.
gonna be hard to resume if we scream about all this mess
at what point did it stop?
Factual reporting and analysis by Sundance ruins another lunch………
But, thanks for doing it. Someone has to.
GOOD JOB!
FJB
Right now Biden’s economy is the same as Jimmy Carter’s economy. First thing Biden did close down energy expansion.
Cheap, less expensive energy equals booming economy. DemonRats are stuck in the pasted, Progressive really means Regressive.There are to many really old people in government. They think windmills in the sky will save them!
Unleash energy watch the economy grow, that is the first thing trump did. I am wondering what is worse then ‘malaise’, forget recession, think Depression?
The WEF believes there are too many old people, period. Apparently heads of western governments are excepted.
And that bald headed f’er that runs the WEF. His shriveled azz is still kicking, I see. And Soros. And Kissinger. All of them older than dirt. Every time I see pictures of these ancient fossils I wonder at the decisions God makes to take His own when they get a little age on them and leave these godless heathens to live on and on and on wrecking and destroying all that is good and decent on this Earth.
The Watermelon killer turbines from “Wind Farms” have recently chopped up over 150 Bald Eagles. These marxist red Green wind energy farms kill millions of migrating birds annually. Birds such as Orioles, Warblers, Vireos, Raptors, etc are getting slaughtered. Green Energy kills
Yeah, its totally pathetic. Don’t like seeing people hurt, but would like to see tornado’s rip through these windmills farms and knock them all down.
And the Audubon Society and Sierra Club does nothing
Biden Regime is purposeful treason to destroy the country. Economic Security is National Security
Call to resign should multiply on all social media avenues
your name and your suggestion of what to do about it are in conflict.
I’ve been watch Rick Santelli for thirty years or so, he’s never been wrong in his prognosis of the economy .You can tell his facial expression is flashing danger.
“… are we seeing inflation continually skewing the valuation of goods and services, while the actual outputs in the economy are shrinking by much more?”
I believe so. It’s only a matter of time before it shows up on main street. There may be a slight delay in the effect of these higher prices – for everything – has on middle America but suspect it will happen sooner rather than later. I fear what that effect may be.
HOW IS THE FOLLOWING PICKED UP IN STATISTICS?
People are cleaning out, tightening up, getting back to cash & basics-
For example, look at the explosion in any one of:
1) storage unit sales
2) estate sales
3) garage community block sales
4) consignment shops
5) flea market sales
6) alternative sites to eBay
7) alternative sites to craigslist
8) increase of craigslist & eBay listings
9) eBay explosion of Lot sales
10) moving sales
11) on net-site auction events and presentations
An absolute nightmare! Also a strong suggestion they may turn off the water in Cali
Wow. Who could have seen this coming?
These same folks will be surprised when a large earthquake hits the region.
no watershed expansion/improvement in over 50 years with a DOUBLING of the population…..CA has ALWAYS had periodic droughts and MOST of the state is a natural DESERT climate including LA and the Central Valley
Yet we keep importing millions of toilet using, water drinking freeloaders. Really ecologically driven, isn’t this bunch of watermelons?
Perhaps the Watermelons believe that if they pay Carbon taxes to corporations that many political criminal puppets have invested in, that their money will provide more water via a “perfect climate” that their Green Utopia has promised them, provided they destroy our economy, while making the “Green” investors loads of “money”
California is sitting next to the largest ocean in the world.
They can’t fix the problem?
More like they don’t want to fix the problem.
The have made some attempts to resolve their water issues, but a non-elected coastal water board was given the power to directly fine and stop coastal solutions. Yesterday it was reported the killed a desalination plant that would have generated 50 million gallons of potable water.
My old stomping grounds. So glad I moved away from that nightmare.
In Los Angeles County, we’re being told that very soon we can only water our lawns, etc. once a week. And summer heat is approaching.
I did hear that Lake Mead is down to its lowest level since the Hoover Dam was built.
A 2.5% miss on GDP is enormous and indicates America will pass through stagflation into recession. Demand destruction is now occuring as businesses and consumers cannot keep up with Biden’s double-digit inflation.
this is purposeful treason
The regime must be held to account
How?? How exactly do we do that? I’ve got nothing…
It’s called a revolution, and we aren’t hurting enough yet to get one going. But it’s the only way out, since we were clearly outright conquered on November 4th, 2020.
The Demunists are counting on creating enough pain that the peons rebel, and it has to happen before November.
Stock Up.
But the economy is booming!
(end sarcasm)
Most jobs ever created! I did that!–Joetato Bribe’em
How purely evil must these people be. What kind of people………
1) Ignore inflation and is OK with Americans pay 15-20% more all day everyday?
2) Ignore the 5-10M illegals coming across the border knowing Americans will have to pay for them?
3) Ignore massive energy increases forcing Americans to pay anywhere from $4 – $7 a gallon of gas when we have more oil in this country in the ground than Saudi Arabia or Russia?
4) Ignore crime and prosecution of criminals while watching Americans get shot, stabbed, robbed and harassed?
5) Ignore the border knowing the trafficking of children and massive lethal drugs are harming thousands of children and killing millions of Americans all day, every day?
The bottom line is this is no longer Republican vs Democrat or Red vs blue. This is now about pure evil vs good and common sense.
And that’s how everyone must approach these discussions with others. Good vs evil
Uniparty / globalists aand govt evil
Anarchism is now mainstream liberal Democrat dogma.
After a period of stagflation, the private automobile will nearly disappear. This is good, and will fight global warming.
Again, this is not extremist, this is mainstream Democrat thinking.
Make them walk. I mean the communist apparatchiks of the left.
Yep, I heard people yammering about how clean the air was during the first part of the lock down. Give me a break – they were all just parroting the propaganda. Unbelievable how so many people just sleepwalk and repeat the “news”.
So, since last summer on a 22 oz bag of Tyson Grilled & Ready fully cooked Chicken Breast Strips….At Dollar General Supermarket…
Base price was $6.95
Then upped to $8.95
Then upped to $9.95
Today from Monday to Thursday, $10.95.
A can of cheap Hunts spaghetti sauce in a nasty metal can…
Base price was $0.85
Then upped to $1.00
Today from Monday to Thursday, $1.30.
Deb says “You ain’t seen nuthin yet…”
I’ve cut way back on our normal unfrivolous shopping (basic “must have”, no “wants”). We make do, always have.
Our grocery bill, in spite of trying to spend less on less, continues to skyrocket…and is now substantially above what I was spending ON less in the first instant. I know that’s a real word salad. Hope you get my point. Bet you do.
If you have a Winn Dixie nearby–they have been running a BOGO on frozen chicken breast bags. You save about $20. They aren’t cooked, but it’s cheap protein by comparison and you get a lot of chicken in the bags.
They have had sales recently on T-bone steaks. Usually three steaks in a package for $5.36 or so a pound.
Needless to say my deep freeze runneth over.
I plan to dehydrate and even can some of the meat.
we bought an entire cow yesterday 4.00 per pound preprocessing. No way we can get it all in our 4 freezers but we will have no problem selling off portions of it.
Let’s hope that we see another Christian revival like during the 70’s Stagflation. Bad times often bring revivals.
I have been praying for that.
The revival needs to happen in the administration of the Church first if it wants to even maintain the faithful. The Catholic charities and most other denominations is so deep in contracting with the government they care very little for ethics and morals of the faithful.
Clearly, the Russians are manipulating US GDP figures. Therefore, in our first official action, for the common good, GDP growth has been restated as +2.5%, and comments on this story have been deactivated.
Yours truly,
U.S. Ministry of Truth
Why is it that it’s always “the experts” that are surprised?
.
Because their expertise lies in ‘being surprised’ . . .?
Expertise lies.
Brevity is the soul of clarity.
1/2 way to an OFFICIAL recession…..2 consecutive decreases in quarterly GDP is the definition
Until they change it
And today the stock market has exploded higher. There was a time when news like this would have seen it magnitudes lower.
The increase today seems to be a bet by the market that the Fed will rethink its projected tightening, and will instead cut and print. This is a high stake card game now. All bets are off. The stock market is a casino, and a dangerous one at that.
Betsy jones: That’s exactly what’s going on. Next up, “Fed rethinks need for rate hikes after soft landing”
A “who blinks first moment” is how I see it.
Hi Bet. I wanted to make sure this recommendation of mine reached you personally. I put it out a few days ago to the Treehouse. Its a Christian movie company from Canada that does excellent movies and series. My Grandmother loved their “Anne of Green Gables” and I really liked it myself! Great source. Cheers!
https://www.sullivanmovies.com/
Oh cheers, my friend!! Thank you for that. I loved Anne of Green Gables. And we are always looking for something not stressful to watch.. Bless you, Colkitto, as always!
✅️Thanks for the site link
Colkitto.
Two rumors I’ve heard/seen from vloggers/bloggers around the interwebs the last few days:
Neither, if true, bodes well for the economy.
Remember last fall when a shortage of truckers was being bemoaned as contributing to the supply-chain crisis and shipping containers stacked up at Long Beach and container ships queued up just offshore?
Day before yesterday I saw an article saying that dropping demand for truckers signaled a coming recession
Bidenomics – When things go from bad to worst, don’t worry, the cycle will repeat.
Foreign policy – When things go from bad to worst, don’t worry, the cycle will repeat.
Energy Policy – When things go from bad to worst, don’t worry, the cycle will repeat.
Border Policy – When things go from bad to worst, don’t worry, the cycle will repeat.
I’m seeing a pattern here.
When you realize that the BLS is run by the same people who run the CDC, NIH, FDA, NSA, CIA, FBI and DOJ you know the economic reports they issue are straight up lies!
Numbers don’t lie, but liers use numbers . Clear case of professional government liers . . . Just sayin’
The homeless don’t care. They’re thriving. No body cares.
Mitch and the RINOs went feet first with spending, infact they couldnt rush those bills through fast enough. In fact the USD printing presses hadnt even loaded the paper yet.
Hell they want to give away 33 BIL more for the Ukraine.
How about we give 33B to the Southern Border and let Ukie-puke fend for itself?
Same sort of misleading (but only in an idiocracy… like ours) BS as the “very strong economy and jobs reports” that came after national shutdown:
https://www.zerohedge.com/markets/recession-deck-us-gdp-shockingly-contracts-q1-driven-inventory-exports-plunge
Indeed, just moments before the print we said that with just 3 GDP reports to go until the midterms, it wouldn’t be a bad idea for the Biden admin to “kitchen sink” the quarter with a negative print.
So what is really going on here? Well, in our view the US economy is already in a stagflationary recession, and the sooner the Biden admin admits this the better, which is precisely why it just did so. Why now? Because it hopes that after a brief recession in Q1 and Q2 – which it cane blame on Omicron and Putin, in fact just call it GDPutin – the hope is to present voters a Q3 GDP print, due just days before the midterm elections, that is solidly in the green for a hail mary bounce for Democrats.
Hope all you Democrat scumbags keep your leftist bumperstickers on your cars…Help make America great again….
Gas jumped $0.30/gal over night in Dallas area……..87 octane regular now $3.99 pg.
Working and middle class families have to cut back spending if they want to food and other essentials for their families.
FU Biden.
But economic times are good in Russia. Russian revenues double thanks to Biden’s war footing/policies. And who is paying the cost of Biden’s war in the Ukraine?
We are. American taxpayers. Not Europe. US Taxpayers pay 4X what all of Europe is contributing.
WA state 87 octane anywhere between $4.49 to $4.99 average.
Some places are even higher
$3.67 for 87 octane in OKC area of OK.
And the Markets see this a good news for investing?
When they delayed the offloading of ships in the L.A. Port authority,and holding patterns in LBPA it created a manipulation of the GDP to be higher than it was. Those ships had to unload, and this is the end result. The value of the foreign cargo is subtracted from the GDP.
It’s gotten to the point where I cut any good news numbers in half and double any bad news numbers from this junta.
I was talking with a local farmer about beef. Local beef farmers are liquidating the herds because of high feed prices and inability to fertilize pasture. Farmers are not just cutting back, they are shutting down the business. Some will convert pasture to corn, but no one wants the corn ground because they can not get fertilizer for what they have. This is a market a market distortion that will take many months if not years to settle back down. Watch for a bit of a pull back in beef prices as the newly sold range cattle move through the feed lots and into the market. After the bulge moves through, there will be less new product in the pipeline.
With the lowered demand for corn, beans and wheat, expect that market to go down, probably just in time for harvest. Professional farmers are selling their corn on futures guaranteeing a price. If they do not make production (drought, lack of fertilizer) then they will have to cover the futures contract with bought corn.
The agricultural markets are entering several very risky threads.
No problems, next quarter GDP will be + %.000001 so there will be no recession.
“However, this should not come as a surprise, as the prime driver of GDP is consumer spending.”
And, the prime group, or economic class, DOING that consumer spending, is THE MIDDLE CLASS.
And it is the MIDDLE CLASS, so called “working Americans” that have been getting pummeled for many years, and were most adversely effected by Brandonomics.
The whole reason America is the marketplace EVERYONE wants in to, to sell their products, is because traditionally we have had a large, vibrant middle class, with $ to spend.
And the Idiots In Charge have steadily eroded the Middle class, whether intentionally, or out of stupidity, or a combination of the two.
1500 of the 7500 employees at twitter work in MinTrue; Twitter “truth and security”. Just layoff the entire group and “poof” twitter is profitable…
It’s going to get FAR WORSE than Sundance’s analysis already reflects:
=====
The value [“Price Index”] of our exports leaves the U.S. carrying the increased rate of U.S. inflation to produce them. A whopping +22.9% in price.
However, the value [“Price Index”] of the imports (again in dollars) is only 15.9% higher.
All things being equal, there’s a 7% price difference between exports and imports.
Inflation is high globally; however, inflation is higher here in the U.S. than overseas.
=====
USA Exports are ALREADY increasingly expensive.
China is now devaluing the ¥Uan just as the Fed QT raises the value of the Dollar.
Our annual Trade Deficit is now running at $1.5 TRILLION.
More USA Production will now be offshored!
• Expanding our Trade Deficit
• Destroying Production Jobs
• Eliminating some 7 Value-Chain and Service Jobs that each Production Job supports.
BEFORE De-Dollarization of Global Trade skyrockets Yields on Government Bonds that foreigners will no longer fund, triggering Hyperinflation that the Fed cannot reverse.
US egg factory roasts alive 5.3m chickens in avian flu cull – then fires almost every worker https://www.theguardian.com/science/2022/apr/28/egg-factory-avian-flu-chickens-culled-workers-fired-iowa
Looks to me the drop in GDP can mostly be laid off on line 23 Federal expenditures. It’s correct that the headline number needs to be corrected by the gdp deflator to get the real GDP. (Fed prefers that to CPI or chained-CPI.)
Note the year-over-year Fed balance sheet has increased by about $1.1 trillion. Issuing currency (printing press) is a small part of that (“only” $111 billion). Mostly funded from from reverse repos (up $1.7 trillion). Fed got heavily into the repo market after it locked up during the pandemic.
As far as so-called “Continental Bank”, hey, if you want to put your hard earned money into someone’s block-chain or NFT, knock yourself out. Not for me.
We clearly have Hindenburg and Hoover at the same time, and it is clear beyond doubt that the puppet regime being run by the Marxist Muslim from Mombasa is illegitimate and the 2020 election was indeed stolen. It is time to drive The Dotard, Mongrel I (there’s another one now, so we have to number them) and the globalists and communists from power like Ceausescu, Mobutu, Batista and Baby Doc Duvalier.