The Conservative Cave
Current Events => Economics => Topic started by: Ptarmigan on January 26, 2023, 08:55:46 PM
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GDP report reveals ominous Great Depression warning sign not seen since 1932
https://www.foxbusiness.com/markets/gdp-report-reveals-ominous-great-depression-warning-sign-1932
The latest numbers from the Bureau of Economic Analysis show that the U.S. economy grew by 2.9 percent in the fourth quarter of last year, and 2.1 percent for 2022. While the White House was quick to take credit for the state of the nation’s economy, they might want to think twice. This latest report should have alarm bells ringing, not trumpets sounding.
That’s because economic growth is slowing down. Even the areas which contributed positively to gross domestic product (GDP) are not necessarily signs of prosperity. For example, business investment grew at only 1.4 percent in the fourth quarter, but that was almost entirely inventory growth. Nonresidential investment, a key driver of future economic growth, was up just 0.7 percent.
Meanwhile, residential investment fell off a cliff, dropping 26.7 percent as consumers were unable to afford the combination of high home prices, high interest rates and falling real incomes. No wonder homeownership affordability has fallen to the lowest level in that metric’s history.
But the growth in inventories, which accounted for half the GDP growth in the fourth quarter, is not a good sign, either. It is the result of businesses being unable to sell off existing inventories at current prices. Liquidating that inventory at discounts will mean lower profits, a further drag on future growth.
The economy did not grow at all. Disposable income has dropped coniderably.
But perhaps most troubling is the precipitous drop in real disposable income, which fell over $1 trillion in 2022.
For context, this is the second-largest percentage drop in real disposable income ever, behind only 1932, the worst year of the Great Depression. To keep up with inflation, consumers are depleting their savings and burning through the "stimulus" checks they received during 2020 and 2021. Credit card debt continues growing, while savings plummeted $1.6 trillion last year, falling below 2009 levels.
It is the worst since 1932. It was during the worst years of the Great Depression.
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We can thank SharterJoe for most of this, but since Congress can't stop spending our money and the Federal Reserve can't stop printing money, we have those clowns to thank as well. :whatever:
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We can thank SharterJoe for most of this, but since Congress can't stop spending our money and the Federal Reserve can't stop printing money, we have those clowns to thank as well. :whatever:
Oh darlin', all intelligent people who have financial advisors, including Mr. ABC and I, absolutely agree 100% with you!
As for calling all the guilty bastards above "clowns" ...
Too bad they are not "bunnies" that our friend Ptarmy would know how to deal with quite efficiently! :-)
~ ABC
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Oh darlin', all intelligent people who have financial advisors, including Mr. ABC and I, absolutely agree 100% with you!
As for calling all the guilty bastards above "clowns" ...
Too bad they are not "bunnies" that our friend Ptarmy would know how to deal with quite efficiently! :-)
~ ABC
:hi5: Ptarmy is a badass, that's for sure ( :-) ), but even he can't keep up with the Proliferation of Bunnies -- another National Problem, according to him.
I think D.C. is a Black Hole into which those who are addicted to power are irretrievably drawn, m'Dear. The only thing that's going to change it is something horrible, but eventually necessary.
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...I think D.C. is a Black Hole into which those who are addicted to power are irretrievably drawn, m'Dear. The only thing that's going to change it is something horrible, but eventually necessary.
To borrow a line: "I say we remote pilot the second dropship down from the Sulaco, dust off, and nuke the entire site from orbit. It's the only way to be sure."
(https://media.tenor.com/Hc7prfQfxEsAAAAM/nuke-explode.gif)
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To borrow a line: " "I say we remote pilot the second dropship down from the Sulaco, dust off, and nuke the entire site from orbit. It's the only way to be sure."
Ha! Ha! I agree with you Defiant! :cheersmate:
Even 'though I have not the slightest idea what the "the second dropship down from the Sulaco" is,
(I don't! I don't!) :-) However ...
I do indeed, agree with the words "and nuke the entire site from orbit. It's the only way to be sure."
~ ABC
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Ha! Ha! I agree with you Defiant! :cheersmate:
Even 'though I have not the slightest idea what the "the second dropship down from the Sulaco" is,
(I don't! I don't!) :-) However ...
I do indeed, agree with the words "and nuke the entire site from orbit. It's the only way to be sure."
~ ABC
Pretty sure it's from Starship Troopers. Book > movie. Movie is entertaining, but book is pretty deep.
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Pretty sure it's from Starship Troopers. Book > movie. Movie is entertaining, but book is pretty deep.
Aliens, actually.
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Aliens, actually.
I stand corrected. Haven't watched that one for a while.