Economists predict growth of 3.5% by years end However...

Just read this article
White House Economists Predict 3.5% Growth by Year-End...

The Obama administration projected that the U.S. economy will expand at a 3.5 percent annual rate by year-end, a rebound that would be almost twice as strong as private forecasters expect.

Source

And then these articles...

US red ink rising even higher, to $1.8T

So I am left with the big question

"How Can you Have Growth and Economic Stability when You Are Borrowing (throwing) more Money at the problem?"

It makes absolutely no sense!

You can't borrow your way out of the debt you owe on the money you borrowed in the first place!

And regard the article 46 cents for every dollar it spends...they don't have 1 dollar or 46 cents...every penny they spend is BORROWED from the FED which in turn charges interest that you and everyone else pays for.

what do you think about this?



[edit on 11-5-2009 by warrenb]

The Obama administration projected that the U.S. economy will expand at a 3.5 percent annual rate by year-end.
The Obama administration.
The Obama administration?
The administration?
The current political regime?
Predicts?

I'd sooner trust the psychic friends network.


Why even ask the question - "How do they know?" - when we all know the answer. They are lying. It is a blatant, baldfaced lie. They can't base these predicitons on any actual trends or facts. They are just giving the media some more crap to print.
Why would they even bother telling the truth when they have spent the last 4 months nailing the economy into a coffin and doing it to thunderous applause from the media and the zombie hordes that make up most of our population? Our general population would rather hear lies than the truth. They WANT everything to be fine so they believe it.

Lies Lies Lies.

FYI

I am one of those narrowminded, doom and gloomers that listens to people who have demonstrated an actual track record of succesfull and fairly accurate predictions of events. You know what I mean. I'm one of those heretics who will listen to a Peter Schiff blog instead of getting my financial news from the present political administration. (By the way, Petes predictions, not good.)

I know, I'm a heathen.





Edited for sarcastic content. .............. seriously.






[edit on 11-5-2009 by badgerprints]

Its more or less, "If we say good things about the economy, people will look past the trillions of dollar deficit, and failing companies, and failed policies, and will assume everything is ok, and act normal, which all in all will make everything ok".

Bad logic, bad bad bad logic.

www.abovetopsecret.com...

3.5% growth? Based on WHAT? How can they honestly expect that much growth?

reply to post by badgerprints

I'd sooner trust the psychic friends network

Miss Cleo is one of Obama's economic advisors..so you're covered!

It's a lie...all of it...plain and simple...to get people to accept this ridiculous budget.

Really not more to state other than that.

reply to post by Republican08


Is not way that people will act normal as the unemployment figures keeps raising and braking records.

One thing is what the government is spewing with their damage control team to paint a pretty hopeful picture and another the realities of everyday life for regular Americans losing their jobs.

reply to post by marg6043


I once saw a man, he was dressing up in clothes a bag of sht, he had glitter on it, even put a five dollar bill in it. He asked if I wanted it, I said, well it's still a bag of sht. No thanks.

You can paint a good picture, but the problems still there!

reply to post by Republican08


Most people have completely bought into the meme that optimism can drive economic growth. To hear them tell it, we should all just sit around in a giant circle and think happy thoughts. That would solve all of our problems.

3.5% growth?? After we had -6.1% contraction in 1st qtr.
The businesses hanging on by their fingernails, and unemployed are going to do a 180 in 120 days. Thats pretty realisitic

reply to post by FX44rice


I wonder if they are including the DEMISE of GM in their data?

Heh...I wonder if they are using COMMON SENSE anywhere in their data?

Frickin joke.

reply to post by David9176

Yea exactly. I saw your from MI and there in S.E. MI it will probably be quite dismal when the full effects of the mass of layoffs Big 3 to suppliers is felt this time next yr.

I'm gonna go buy some new sh#$ now things are lookin sweet!

So, does anyone know if inflation will cause GDP numbers to rise? GDP is measured in dollars. Gas gets more expensive, everything gets more expensive, we appear more productive.

That "Growth" will be the leveraging process that brings about massive inflation. The government has given out 12 or 13 trillion dollars and plans on more. This is going to destroy the dollar in a very short amount of time.

But this is also what I expected. I knew we would likely have "growth" between 2.9% and 3.2% It will likely be on the higher end of that scale. Meanwhile everything is going to get really damned expensive.

First understand Growth in GDP is not CREATED EQUAL in terms of the benefits or the productivity of the GDP growth

GDP consists of

1 Consumear spending and
2Gov't spending not to mention
3 exports and
4Gross private direct investment

The gov't is trying to spend it's AZZ off to make off for the declining consumption of the consumer.....the more the gov't spends they will tend to crowd out (4).....also a weaker dollar boost exports and vice versa

Last year our "service" economy generated 70% of our GDP from consumer spending and 20% from gov't spending

The only way GDP can rise is through Gov't spending.......note that GDP does NOT measure the Productivity of our (DEBT) growth .......

The productivity of Gov't spending is infamous for (borrowing much more) getting country's DEEPer in debt.....and usually having negative effects on the private sector....and the currency....and making an economy more dependent on the gov't..............which tends to pave a tempting off ramp to socialism

The gov't would like to see Gov't spending grow to about 40% of GDP cause they know the consumer is hurting..........and they wouldn't want the excess to be purged from the system .....which would make the politicans un-electable for a second term (because GDP would fall...longer and further).....they should have let the economy purge itself in 2000-2001...........now they have the chance to do it in 2008-9.........should they kick the can down the road .........then by 2011 or so THERE WILL BE NO MORE OPTIONS other THAN out and out socialism or collapse.

GDP should never be used alone as a measure of economic health, or the sustainablity (outside of couple quarters) of a sustainable recovery

because huge increases in gov't spending/ borrowing (that can't be maintained without crashing even a world reserve currency) do not help unemployment .....the standard of living or really anything....and the gov't demand for borrowing also crowds out the private sector (borrowing) leading to more unemployment and thus more dependance on big gov't

with that being said .......the 3.6% increase will not be met in my opinion


i am not an economist and someone can feel free to make even more detailed examples but i think this covers the jist of GDP

[edit on 13-5-2009 by cpdaman]

considering GDP DECREASED 6.1% last month.. it would assume that according to Obama we should see the economy doing 9% more business than first quarter of the year?

Astounding..

Why, employers should be fighting for applicants! An end to unemployment! The messiah has saved us!!

Ahem.. if I drank the koolaid, that's what I would be saying.

here it is, the 16th of May... 5 days after the Obama & crew-of-economists
declaration.....


the NYT says:

The American economy, in recession since December 2007, contracted at an annual rate of 6.1 percent in the first quarter, the United States Commerce Department estimated. But most economists now expect it will turn upward by the fall.

in other news sources, dated today the 16th, the EU reported that
they....led by Germanys decline in GDP... will be facing a 6+% annual decline themselves.
following the 1st Quarter decline already logged in and put on record.


Also interesting is that both Dubai and Germany are 'Demanding'
the tons of Gold bullion bars that are held temporarily in both London and NYC vaults.

Dubai has officially opened their DMCC = Dubai Multi Commodities Center
...and will soon be Issuing their own ETFs after the Gold being returned to their possession.
Germany, is not in any process of opening a Gold exchange... so, i guess they just want their Gold back in their hands instead of in the Vaults of NYC or London.

I reckon the general world community is exhausted withthe lies and untruth of facts/statements/ratings/etc that has been coming out of WallStreet/Treasury for so many years...
the false 'growth' expectation being the lastest outright lie by the US
economic community...


i just can't see how not to get trampled in the stampede out of USA dollars, securities, etc