U.S. EconomyGrows at a 5.3%Annual Rate in First Quarter(bad inflation adj?

[papau]

May reports may herald slower growth? Signs of building inflationary pressures -wages up at 5.8% annual rate in the first quarter? I'd say the inflation adjust for 5 years has been screwed up - and is still screwed up (GDP price index up at annual rate of 3.3% - yeah - right).


http://www.bloomberg.com/news/economy/economies.html

U.S. Economy Grows at a 5.3% Annual Rate in First Quarter
May 25 (Bloomberg) -- The U.S. economy grew at an annual rate of 5.3 percent in the first quarter, faster than the government initially estimated, as companies replenished inventories and shipped more goods overseas.

The increase in gross domestic product, the sum of all goods and services produced in the U.S., compares with a 4.8 percent rate reported on April 28, and a 1.7 percent pace in the fourth quarter, the Commerce Department said today in Washington. While less than forecast, growth last quarter was the strongest since July through September 2003.

The vigor in the economy may give way to moderation for the remainder of 2006. Slower consumer spending and a weakening housing market will allow Federal Reserve policy makers to stop raising interest rates if additional data point to a smaller risk of accelerating inflation, economists said.

``The first quarter was unambiguously strong, but the issue now is how much of that is going to carry into the second quarter,'' Chris Low, chief economist at FTN Financial in New York, said before the report. ``So far, the economic data we've seen for May are shaping up a lot weaker than we expected, and if that continues the Fed can pause.'' <snip>

[patcox2]

1. Undrestating inflation leads to overstating GDP growth, which leads

to the fed raising rates to slow the economy, when in fact its already slow, leading to recession.

Is that it in a nutshell?

Fact is, we are in a stagflation situation, which is masked by the bogus inflation numbers, and the fed unfortunately cannot admit this and therefore is forced to pretend we have a roaring economy in need of monetary tightening. The reality is things are in the toilet and the fed is making it worse, blinded by dogma.

[nolabels]

2. The slathering dogma that has many looking for crumbs in the gutter

In this over-extended country that has the rich making the policy of poor getting poorer at everyones expense including (and soon to be seen) their own. The ability for the most of the population to overrun the wealthy has never been greater, yet they still flaunt and ridicule the rest.
It looks like we are in for exciting times ahead :popcorn:

[Skink]

4. That's it alright.

:scared:

[Tempest]

3. And in related news, Congress is about to raise the debt ceiling

It's easy to inflate the GNP when the federal government is spending money as fast as they can print it.