3.3% growth GDP- that is exactly as expected the REP's pull all strings. Mission to make McCain win. Suddenly the economy is getting strong although everybody knows that its not Remember the recent revision of GDP for the last 2 years , substantially down. The BEA is very tricky when it comes to measuring inflation - effectively they generate the real inflation into growth while understating real inflation. The Bush administration is topping all other governments in faking numbers. In the above chart you see that inflation is understated by 3 % that is the magnitude in the GDP which is roughly overstated actally its a bit more complex but gives you an idea of the impact it has.
excerpt from
http://www.shadowstats.com/
The popularly followed number in each release is the seasonally adjusted, annualized quarterly growth rate of real (inflation-adjusted) GDP, where the current-dollar number is deflated by the BEA's estimates of appropriate price changes. It is important to keep in mind that the lower the inflation rate used in the deflation process, the higher will be the resulting inflation-adjusted GDP growth.
Due to a lack of good-quality hard data, the "advance" GDP report is little more than a guesstimate. The BEA comes up with three estimates of growth, a high, low, and most likely. The numbers then get re-massaged so that the reported growth rate is moved closer to whatever the economic consensus is expecting. There actually is a belief at the BEA that there is some value to economic consensus estimates.[2]
July 31st, 2008
• GDP Report is Political Garbage • Lowest GDP Inflation in 10 Years Generates Strong Growth Report • Downward Revisions Put 4th-Quarter in Contraction
At the same time this substantialy understated inflation numbers are the basis for bond yields and salary raises. Mainstream has been ripped off since Bill Clinton with Greenspan introduced this systematic fraud scheme. The IMF and worldbank were very busy teaching many countries to do the same. The EU made this move with introduction of the EURO but the most outrages thing is the FED put the interest rates down for wallstreet far below inflation - Mainstreet does not get any cheaper credits plus has to earn negative interest for a considerable time so they get srewed 2 times for mistakes greedy bankers and politicians have made deliberately.
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