http://bit.ly/9osPSw - - - WASHINGTON (Reuters) - The economy grew at a faster-than-expected 5.7 percent pace in the fourth quarter, the quickest pace in more than six years, as businesses reduced inventories less aggressively, the Commerce Department said on Friday.
The first estimate put fourth-quarter gross domestic product growth at its fastest pace since the third quarter of 2003. The economy expanded at a 2.2 percent annual rate in the third quarter. Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, growing at a 4.6 percent rate in October-December period. Growth was boosted a sharp slowdown in the pace of inventory liquidation, a factor that could mask the strength of the economic recovery from the longest and deepest downturn since the Great Depression. But even stripping out inventories, the economy expanded at an annual rate of 2.2 percent, accelerating from the 1.5 percent increase in the third quarter, reflecting relatively strong performance from other segments of the economy. - - - A curious bunch of details in this explanation. The economy, still mostly driven by the private sector (even though the current government is intensely hostile to it, and is scheming all kinds of ways to kill it and take it over), was always eventually going to turn around -- with or without artificial "stimulus." Those of you inclined to pull an "I told you so" out of this in defense of the Administration should be cautious. Now we will see what happens when the inflation genie is let out of the bottle. The banks have been sitting on all that fiat money for this kind of sign to start pumping it out. This will certainly force the Fed's hand on interest rates. And then things will get interesting. Predictions: - This number will surely be revised downward next go-round; - Interest rates will rise; - The dollar carry trade bubble will pop; - A double dip depression is in the works; Keep in mind also: http://bit.ly/9cjiFA - - - WASHINGTON (AP) -- Wages and benefits paid to U.S. workers posted a modest gain in the fourth quarter, ending a year in which recession-battered workers saw their compensation rise by the smallest amount on records going back more than a quarter-century. The Labor Department said that wages and benefits rose by 0.5 percent in the three months ending in December. For the entire year, wages and benefits were up 1.5 percent, the weakest showing on records that go back to 1982. The anemic compensation gains have raised concerns about the durability of the economic recovery. The fear is that consumer spending, which accounts for 70 percent of economic activity, could falter if households don't have the income growth to support their spending. - - - Me thinks this is more of a gasp than a breath of new life. Even if it is a new sign of life, cap & trade, and the regulations under consideration in Congress, coupled with the attack on the banks the Admin is waging to help Zero's sagging poll numbers, will choke it off. Obama will get a bump in the polls because of the surface level interpretation that the media will run with, since they're so invested in his image. Things will get interesting after that. - Publius -- "It ought never to be forgotten, that a firm union of this country, under an efficient government, will probably be an increasing object of jealousy to more than one nation of Europe; and that enterprises to subvert it will sometimes originate in the intrigues of foreign powers, and will seldom fail to be patronized and abetted by some of them. Its preservation, therefore ought in no case that can be avoided, to be committed to the guardianship of any but those whose situation will uniformly beget an immediate interest in the faithful and vigilant performance of the trust." [Federalist Papers #59] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
