Thursday, December 20, 2012

About That GDP Growth Number and the U.S. Killing Machine

In their third (and "final") estimate of the US GDP for the third quarter of 2012 the Bureau of Economic Analysis found that the economy was growing at a 3.09% annualized rate, an upward revision of +0.42%.

As I have pointed out, most of this "growth" is manipulated growth as a result of Ben Bernanke and his money printing machines. The money is sure making it back into the housing sector and the stock market, but don't for a minute think it isn't resulting in more money available for the government killing machine.

For the first time since the fourth quarter of 2009, real state and local government expenditures are now reported to be growing. In fact, surging governmental expenditures at all levels contributed +0.75% to the headline +3.09% number -- with nominal "defense" spending alone growing at an astounding annualized 13.9% rate.

(ht R Davis)

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