Sunday, July 31, 2011

'Growth Recession' Latest Bad News for Faltering US Economy

The newest term to the Newspeak dictionary: Growth Recession. Used to be that depression was the only economic term for a negative GDP. They didn't like that, so they started calling it a recession...you know, for those times when the economy is depressed but not depressed enough to call it a depression. It makes you feel better. Through all this, always keep in mind that over 40% of the GDP is government spending, which is not a domestic product. It's wealth redistribution. And even with all the government spending, there's barely a pulse.

    CNBC -

    In addition to all the other ignominy heaped upon the US economy comes the latest insult Friday—confirmation of a “growth recession” that foretells a long, ugly road ahead.

    “Growth recession” is a term that means the economy actually is growing but not at a fast enough pace to head off rising unemployment, which is at 9.2 percent and trending higher.

    The term was unleashed Friday by Deutsche Bank economist Joseph LaVorgna, who said the government’s latest reading on the economy showing just a 1.3 percent gain in gross domestic product in the second quarter is ominous in more ways than one.

    “The disappointing Q2 GDP results and downward revisions to the prior three quarters lead us to believe that this (growth recession) indeed is the case,” LaVorgna wrote in an analysis.

Read it all.