DUDE, HERE’S YOUR RECESSION: At least, if you believe this from Rich Karlgaard:
For example, take the U.S. gross domestic product (GDP). Last week the Commerce Department released a preliminary figure of 1.9% growth for the second quarter. Nominal growth was 3% minus a deflator of 1.1%. Say again, please? The government used a deflator of … 1.1%?
Who believes that? According to Reuters, the Commerce Departmentâ€™s own figures showed a 4.3% inflation rate during the second quarter. Forgive my ignorance, but why is 1.1% the GDP deflator and not 4.3%? Were the latter figure used, it would show the second quarter retracted 1.2%. If I am missing something in my simple question, please set me straight.
More on that topic here.
UPDATE: Still more here. “You patiently try to explain that imports arenâ€™t included in GDP, and thatâ€™s why the numbers came out the way they did. But theyâ€™re not going to believe you.”