posted on August 29, 2003 09:06:15 AM new
"The evidence," as the saying goes, "is only circumstantial" -- but I've got a strong case anyway, so here's my opening statement: They had it written down already and just mouthed the words into the phone once the calls came. They didn't read the facts in the report itself.
Who's "They," and what "Facts," you ask? Well, ladies & gentlemen of the jury, they are the economists/experts who were quoted in today's financial news, and the facts are what explain today's revised 3.1% growth in Q2 GDP.
Exhibit no. 1 includes three utterly typical quotations:
"Businesses are clearly getting their bottom lines back in shape and that is having a very positive impact on the economy."
"We're definitely seeing demand increasing and are optimistic that the economic recovery will continue."
"The numbers are a confirmation of the existing trend or prevailing view that the economy is strengthening."
Exhibit no. 2 is a fact from the GDP report about defense spending, which saw an off the chart increase of 45.9%. Yes, I know that some stories included the "defense spending" angle, that is if the reporter bothered to read the press release faxed out by the Bureau of Economic Analysis. And no, a big increase is no surprise, given that the U.S. military fought a land war during Q2.
But -- consider Exhibit no. 3, which NONE of the newswires or major outlets reported: At 1.7%, defense spending added to more than HALF the 3.1% GDP gain; minus defense, the GDP gain was 1.4%.
Exhibit no. 4 is another fact that was virtually ignored: Corporate profits FELL by 3.4%. Mind you, corporations in Q2 were in a ruthless cost cutting mode. They laid off millions of employees, closed marginal operations, and allowed inventory reductions to the tune of $20 billion. All that, and they could not collectively show a profit.
Prosecution rests, your honor. What they SAID ain't what I READ.
posted on August 29, 2003 10:53:29 AM new
When the price of oil goes up, it's bad news for the economy. I expect the U.S. economy to recover in about 8 years - no sooner.
posted on August 29, 2003 11:12:26 AM new
Right! Kraftdinner,
We have a newspaper in our area that resembles Fox and News Max...The Washington Times. ON the way out of the grocery store, I noticed the headlines .."Economy Blooms in the Spring". What nonsense. Like you said, This economy is here to stay for at least 8 years.
No the reason I don't panic is because as we've all seen before the economy can, at any time, turn completely around and those projections of how long we'll be in debt will change accordingly.
[ edited by Linda_K on Aug 29, 2003 11:26 AM ]
posted on August 29, 2003 06:18:31 PM new
The middle class are suffering with rising healthcare costs, job losses, prescription drug costs, rising taxes, cuts in pay, cuts in work time, expensive education, and deteriating infrustructure.
posted on September 2, 2003 03:22:00 AM new
I believe we're headed for a depression. Intrest rates are rising, unemployment is rising (decent paying blue collar work is gone) and the cost of living is soaring.
I'm interested in watching the gold prices in the next couple months.
