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Once again, you are trying to spin it negatively. Low growth is not recessionary - and it is much better than all the experts of your previous post predicted. So the question remains.... Why would you "characterize a low growth economy as bad news." - especially in light that it is much better than predicted?
Do you really think changing the subject by getting personal will help you avoid the question? I will put my GPA, Goals, Education, or career against yours any time.
Once again - What possible reason do you have to take good economic news and spin it negatively?
I think I need to clipboard that because I have to ask it every time.
I thought an analogy would be helpful for you. Like I said 0.6% economic growth is poor news as far as I'm concerned and that number is propped up by inventory adjustments. The end-sales part of the economy actually contracted.
If you want to compare "GPA, goals, education & career" take your best shot.
GDP is calculated from the CPI. If you knew economics, you'd understand that.
The economy actually contracted, but because the methodology for calculating CPI constantly changes to understate it (just like unemployment figures), GDP can appear to be positive.
Why do you insist with relying on the answer to the equation being consistent when the equation keeps changing?
CPI is nowhere in the calculation. Inflationary numbers for each sector are used independently and therefore your theory that the weighting used in CPI is applied to GDP is completely false. As in all economics, the formulas are constantly adjusted to reflect the reality of the changing economy as well as improved methods to determine the actual economic activity. Regardless, this is an official number put out by the BEA and is a positive number that is being spun negatively.
The story was not that the equations were changing so the numbers are invalid. The story was that there was .6% growth for the quarter and that is bad. The point is that the media took the news as fact and spins it negatively and the question still remains.... WHY?
CPI is nowhere in the calculation. Inflationary numbers for each sector are used independently and therefore your theory that the weighting used in CPI is applied to GDP is completely false. As in all economics, the formulas are constantly adjusted to reflect the reality of the changing economy as well as improved methods to determine the actual economic activity. Regardless, this is an official number put out by the BEA and is a positive number that is being spun negatively.
The story was not that the equations were changing so the numbers are invalid. The story was that there was .6% growth for the quarter and that is bad. The point is that the media took the news as fact and spins it negatively and the question still remains.... WHY?
You increase money supply, growth follows. That growth translates to GDP and is an illusion. Remember that the Dow isn't measured in bananas, it's measured in a moving target: dollars. That ruler is shrinking.
So if I shrunk a ruler to half it's size, am I now 12' tall and can dunk a basketball?
I hold $54M in assets
5 houses overseas, 2 chateaus and a vineyard
Supermodel wife
2 beautiful kids with a 140 and 143 IQ
Can bagz top that?
Sorry I didn't push down the fluff on my successes to make them appear more believable.
I have $55M in assets
6 Houses overseas, and 3 lodges and a ski area
2 Supermodel mistresses
1 Smart wife
2 Kids with 141 and 144 IQ
And a Bridge in Brooklyn
The GDP numbers came out for the first quarter today, and I have yet to see a headline like "Recession held off another quarter" ... After all the news about so called experts predicting that we are in a recession. Now we have to have negative growth through September to have a recession. While possible, it is not predictable at this point.
Instead I have seen headlines like Anemic Economic Growth for the first quarter. And "slow growth, but contraction averted by exports."
So in other words, the weak dollar is creating opportunity for exports and if this keeps up, some of the exported jobs might come back home. Good news? Not according to the papers.
The problem is that much of our economies woes are due to consumer confidence and the fact that the public is being told that we are in a recession (even though the vast majority don't even know what that means) and when the opportunity arises to point out that we haven't been in a recession like so many pundits previously thought, they take that opportunity to spin it negatively again. That spin is actually hurting the economy.
So the obvious question is: Are they spinning it that way to cover up their ineptitude or are they doing it to influence the upcoming political elections?
I thought an analogy would be helpful for you. Like I said 0.6% economic growth is poor news as far as I'm concerned and that number is propped up by inventory adjustments. The end-sales part of the economy actually contracted.
The end sales part of the economy? I am talking about the whole economy. Separating out the part that shrunk is obviously negative spin.....WHY?
Quote:
Originally Posted by ViewFromThePeak
You increase money supply, growth follows. That growth translates to GDP and is an illusion. Remember that the Dow isn't measured in bananas, it's measured in a moving target: dollars. That ruler is shrinking.
So if I shrunk a ruler to half it's size, am I now 12' tall and can dunk a basketball?
You just said that the GDP is adjusted for the CPI and now you are saying that the inflation (caused by increasing money supply) directly translates to the GDP. Wrong. The GDP is adjusted for inflation (not the CPI) so your analogy is also false.
But it was a good attempt to spin the positive news in a negative light. Why are so adamant in doing that - even though I repeatedly point out exactly what you are doing?
Last edited by Bagz; 04-30-2008 at 11:37 AM..
Reason: quote feature
Blowing sunshine up people's butt isn't going to work. Who cares what some pointy headed economist and white house press stooge say? The Fed thinks we are slipping into a recession, Warren Buffet thinks we are in a recession. The stock market thinks we are in a recession. GM just announce layoffs. Does that sound like economic good news to you?
When preconceived notion and fact collide it can be disconcerting. Have a drink and hold out hope for bad news next quarter.
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