Goldman speaks - and I couldn't agree more

www.businessinsider.com...

Goldman Sachs Thinks The End Of The Stimulus Is Going To Crush GDP Growth

"Goldman Sachs (via Zero Hedge) have released what certainly is a depressing sight in their latest GDP report. The bank continues to predict that U.S. GDP will remain positive through 2011, with 1.5% growth in H2 2010 and 1.5% growth for Q1 2011, rising to 3% growth by the year's end. But that's pretty much anemic growth, and below consensus.

More interesting might be the impact of the withdrawal of fiscal stimulus on GDP growth for the U.S. economy.

The positive impact of said stimulus can be viewed in the first half of this chart, pointing to how it dragged up the U.S. growth rate through some more difficult quarters. But now with its withdrawal, its absence will be felt through 2011, where the pace of growth might have been lifted by its retention.

This could partially explain Goldman's projection that unemployment is set to rise back to 10% in the middle of 2011.

Goldman Sachs (via Zero Hedge):"

What? I didn't know unemployment was ever LESS than 10%.

I know, I know. THEIR figures.

But I look around HERE - IN Georgia, and I see it as being more like 20%. The other folks working have had salaries cut - everyone - except govt. workers.

For every $1 of government spending, it costs $4 damage to the economy, minimum.

For every $1 of bailout money to ANY entity, it costs $10 dollars in damage to the economy, minimum.

This includes the implementation, the lowering of the value of the dollar, the misappropriation of funds, the future interest costs plus a few more.

This is my own postulate. Do not ask for any source, for the source is I.