Don't Be Fooled, Real 4Q12 GDP Was Even Worse Than 0.14%
January 31, 2013 - 6:24pm
A few weeks ago we commented that the Great Global Rig of 2012 was ending. Yesterday’s GDP print confirms this. We noted in the second half of 2012 that the US Federal Government was engaging in a massive rig to make the economy look better than it really was in order to help the Obama re-election campaign. This showed up in the jobs data as well as the 3Q12 GDP print. Now the election is over and we’re stuck with the hangover. The mainstream media likes to claim that the fourth quarter GDP number is the result of the Government cutting spending, but the truth is that Government outlays increased 12% in 4Q12. Indeed, the sad truth is that the US economy is actually in far worse shape than the official data indicates. As we’ve noted before, the Feds dramatically understate inflation to make GDP growth look better. Case in point, t...
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