US revised second-quarter GDP Jumps to 3.0% vs 2.7% rise expected

August 30,2017
the staff of the Ridgewood blog


Ridgewood NJ, the U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years.
The Economy also showed signs that the momentum was sustained at the start of the third quarter.
Gross domestic product (GDP) increased at a 3.0 percent annual rate in the April-June period, the Commerce Department said.

Bill Gross : “debt super cycle.”

U.S.’s $13 Trillion Debt Poised to Overtake GDP

By Garfield Reynolds and Wes Goodman

June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”

http://www.bloomberg.com/apps/news?pid=20601109&sid=aa0cI64Gx.4E&pos=15

The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.

“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”

Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co. in Newport Beach, California, said in his June outlook report that “the debt super cycle trend” suggests U.S. economic growth won’t be enough to support the borrowings “if real interest rates were ever to go up instead of down.”

Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94 percent of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.

“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”

To contact the reporters on this story: Garfield Reynolds in Sydney at greynolds1@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net.

Last Updated: June 4, 2010 05:06 EDT

http://www.bloomberg.com/apps/news?pid=20601109&sid=aa0cI64Gx.4E&pos=15

The government’s finances have been “substantially worsened by the credit crisis, recession, and government spending to address these shocks,”

Moody’s Reiterates U.S. Spending Risks Credit Rating (Update1)

By Mary Childs

http://www.bloomberg.com/apps/news?pid=20601087&sid=az1YD_O3PXz4

May 25 (Bloomberg) -- The U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce projected record budget deficits, according to Moody’s Investors Service Inc.

The U.S. retains its top rating for now because of a “high degree of economic and institutional strength,” the New York- based ratings company said in a statement today that was little changed from a credit opinion released in February. The outlook is stable, the statement said.

The government’s finances have been “substantially worsened by the credit crisis, recession, and government spending to address these shocks,” Moody’s analysts lead by Steven A. Hess wrote. “The ratios of general government debt to GDP and to revenue are deteriorating sharply, and after the crisis they are likely to be higher than the ratios of other Aaa-rated countries.”

Debt to revenue has more than doubled over the past three years and is now over 400 percent, which could lead to “potential stress” on finances, the report said.

“This whole financial crisis in Europe has actually benefitted the U.S. government in its access to finance,” Hess said in a telephone interview. “The U.S. Treasury market has become once again, as it was during the recent financial crisis globally, the safe haven, and therefore lots of money flows into the U.S. Treasury market and that is a very positive.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=az1YD_O3PXz4

Greenspan calls economy a "dull face" we say If socialism is the new “N” word than it looks like , “RECESSION” has become the new “F” word.

According to Bloomberg -- Former FED Chief Alan Greenspan said, “ he sees the U.S. economy slowing next year as the surge in stocks comes to an end.”“The odds are we flatten out,” Greenspan said today in a Bloomberg television interview, referring to the equity market. “That flattening out will put some sort of dull face on 2010.”
Hummmm “dull face” that’s what they are calling it ? Lets see according to the Commerce Department GDP, which measures the total goods and services output within U.S. borders, fell at a 0.7 percent annual rate instead of the 1.0 percent decline reported last month. This is the fourth straight quarter of decline in real GDP. While the Institute for Supply Management said its business barometer fell to 46.1 in September from 50.0 in August; indicating a further contraction.( A reading above 50 indicates expansion.) ADP Employer Services showed private employers cut 254,000 jobs in September, more than the 210,000 layoffs financial markets had been expecting.

So Mr Greenspan it seems like a little more than a “dull face” what ever that is ,but I have one question ; If socialism is the new “N” word than it looks like , “RECESSION” has become the new “F” word.

Odds are unless there are major changes in policy by the US Government and the Obama administration we are looking at a prolonged period of stagnation for the forcible future.

Now for something completely different :GDP REVISED UP TO 3.3% in Q2

GDP REVISED UP TO 3.3% in Q2 surprising many but not this blogger who has speculated for some time that US and global growth rates would be far higher than most economist had predicted. Mean while Fannie Mae reshuffles executives and the proverbial deck chairs on the Titanic and Barak Obama prepares for Nuremberg. Once again we exit from the summer doldrums making premature funeral arrangements for the American consumer.

Again focus on the big picture:

1) the US economy is stronger than most assume
2) Banking finance and real estate continue to contract
3) While even with improved strength of the dollar exports continue to boom
4) Unemployment lags with job creation coming in export dependent and energy sectors
5) Kitchen table lap top entrepreneurs continue to sprout up and go unnoticed
6) Yes inflation will be higher than we are used to ,but not at 1970’s levels
7) Long term the US Economy will move away from the consumer of last resort to the world and export
8) The current 1970’s mind set is a generational thing with roughly 4 years left in the cycle
9) And finally this current election is more like the McGovern election than anyone in our life time you do the math