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Post Info TOPIC: U.S. GDP super low


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U.S. GDP super low


Does anyone know what it means to have negative GDP ???

How can it be that low??

(% change from previous)
                                                       adv.    prelim.
Real GDP..........................................-0.3    -0.5
Current-dollar GDP.............................3.8      3.6
Gross domestic purchases price index..4.8      4.7


BEA STATISTICS

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Bruce Behrhorst


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Actually,

the stats there are for 'changes' in relative GDP. Thus you have a negative value if your GDP is shrinking, and a positive one if it is growing.

With the losses in industrial sector jobs and the losses in the building markets, not to mention the financial losses related to everything else, we are in big trouble. It's no wonder the growth of GDP is negative. And I don't know what the price of fuel is doing up in Canada, but down here in Northern California, it has dropped remarkebly: Costco regular in Eureka is now about US$ 1.88/ gallon (US$ 0.55/Liter.) This can only be an indication that something big has changed up in Washington, D.C. My guess is that perhaps the US oil companies were 'asked' 'nicely' to share their proffits (by reducing their prices) with the other children, or Uncle Sam was going to come in an nationalize the whole works. I suspect that it was pretty effective, whatever was said, because the priced dropped a lot and quickly too.

Personally, as relieved as I am to be paying a little less, I think this may indicate how dire the situation has become...




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Actually looking back on the events of last year, it's most likely that the oil prices were due to hedge funds and other large capital feeling the stock market can moving it oil futures.  At some point some of them realized that it couldn't go on for ever and started taking profit.  As the prices fell all of the rest started taking profit.  Then the banking crisis hit and the punge was full-scale.

Now the big push is in gold and silver.

-- Edited by John at 15:59, 2009-02-22

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