GDP growth strongest in 2-1/2 years (via incr Gov spending & inflation lie

[papau]

http://abcnews.go.com/Business/wireStory?id=1900923&business=true

GDP growth strongest in 2-1/2 years

(Reuters) - The U.S. economy grew at its strongest rate in 2-1/2 years during the first three months of this year, snapping back from a lackluster fourth quarter on a surge in spending and investment, a Commerce Department report on Friday showed.

Gross domestic product grew at a 4.8 percent annual rate in the January-March first quarter, more than twice the 1.7 percent rate in the fourth quarter and the strongest for any three months since 7.2 percent in the third quarter of 2003. The first-quarter figure was only slightly below the 4.9 percent rate that Wall Street economists had forecast.

The pace of price rises declined from the fourth quarter. A gauge of personal spending excluding food and energy - a measure favored by the Federal Reserve - advanced at a 2 percent rate in the first quarter compared with 2.4 percent in the fourth quarter last year.

First-quarter GDP performance was boosted by increased government spending on reconstruction in the wake of last year's devastating hurricanes on the Gulf Coast. Federal government spending shot up at a 10.8 percent rate, a sharp contrast to the 2.6 percent rate of decline in the fourth quarter. It was the strongest government spending since a 22.1 percent jump in the second quarter of 2003. <snip>

[rodeodance]

1. i first read this as GOP growth. eeks. (maybe true?)

[liberal N proud]

3. Actually that is what it is

GOP Growth for the ubber rich at the cost of the regular guy.

[Roland99]

2. Markets aren't sure how to take it; not moving much today.

[papau]

4. I think the markets are wise to the inflation lie & GDP via unsustainable

deficit government spending.

[Sammy Pepys]

6. I think.....

...if the economy keeps growing like this, the Fed may keep hiking rates...and the market usually doesn't usually like that. So that's probably why it doesn't know where to go.

[Roland99]

7. Well, seems the Fed is only worried about *wage* inflation and no worries

Quarterly employment costs at *7 year low*.
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2252315&mesg_id=2252432


Damn, the similarities to pre-1929 crash are becoming more and more obvious.


The economy is great, if you're a robber baron.

[DUHandle]

5. Then again, now that M3 isn't published

it's hard to know where we are at.

[AX10]

8. M3 is no longer published.

Plus, all of this "growth" is being funded by massive ammounts of debt.