On May 31, the Bureau of Economic Analysis said their second estimate of Q1-2012 GDP (Gross Domestic Product adjusted for inflation) growth increased at an annual rate of 1.9%. This was a downward revision of 0.3% from April's estimate of 2.2%. The estimates for prior quarters were unchanged.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, residential fixed investment, private inventory investment, and nonresidential fixed investment that were partly offset by negative contributions from federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
| Subject: | A Good Comment |
|---|---|
| Date: | Thu, 31 May 2012 07:30:57 -0700 |
| From: | Jas Jain |
A Good Comment
"An illusion of growth has been created by spending borrowed money. Even that's not enough any more."
http://www.guardian.co.uk/commentisfree/2012/may/30/eurozone-crisis-spain-debt
Borrow-and-spend is road to ruin and not a recipe for the future growth as dishonest economists in America would have you believe. All growth in the US since late 1997 has been due to borrow-and-spend, first by the households and now by the federal govt.
The US can only postpone the deflationary depression for so long because the cost keeps going up exponentially. India, first, and then America would plunge the world into a Greater Depression that would be acknowledged by all, including the dishonest economists in America led by Bernanke and Krugman. The blame, of course, would be placed on Europe, Germany in particular. America and India are in a worse shape than the Euro-zone as a whole.
JasSee my articles:
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