President Obama: GDP Shows Economy Headed in Right Direction

“But the fact that the contraction in the 2nd quarter wasn’t as bad as some economists had predicted – and was somewhat less horrible than the -6.4% contraction during the first quarter of the year – was a good sign, the president said.”
While a 1% contraction is not good, to call it somewhat less horrible than a 6.5% contraction seems to under represent it.

I know everyone else has already mentioned this, but…
“somewhat less horrible than the -6.4% contraction during the first quarter of the year”
Somewhat? I know you try to be a uniform skeptic, but COME ON.

Looks like we need to beg the PRC to buy more debt.

The President is doing a good job-makes me wonder if George Bush was ever president since he was doing much but planning wars and more wars. I am optimistic and I think if we feel that we will get out of this sooner. Obama has some new ideas we need to change our thinking and get on board.

Broke – Yep, I am surprised the PRC have allowed us to export as much inflation up to this point. I don’t expect them to do as much of this in the future. We are in deep poo, and I don’t see much to be optimistic about. The government is going to monetize the debt. It is the only way they fund their size and scope.

Yahoo News Asia reports quote “Nine months into the 2009 fiscal year that ends September 30, the budget deficit widened by 94.316 billion dollars in June to 1.086 trillion dollars, according to the Treasury’s monthly statement of receipts and outlays.”
Over a trillion dollars in debt, how can we paint that as a rosy picture? Here’s a thought to put that into perspective, theres not 1 Trillion in U.S. currency in existence. Time to print more money Ben, oh wait we already did. Guess we need to buy some treasury assets and… oh wait we did? A trillion dollars worth? How? With what? That kinda money dont exist! Well I guess that means severe inflation is coming right, so lets all thank those $700 Billion in bailouts to companies “too big to fail” so that America could fail itself. Brilliant, sell america down the tubes so Big Banks and Corporations could stay in business. Absolutely Pathetic, like Mr. Burns is running the treasury (from the Simpsons).

Seems like some don’t want to admit Obama and his team are doing a good job. Health care is a mess and most people know it. Other countries are much more on par than the USA. In the US we don’t care about all our citizens. There are a lot of tests ordered just to make money /not all doctors but some are just trying to fatten the doctor bill. We need to come up with something better than what we have now. People are losing their jobs and their health care.

LOWES4321:
Obama is doing a good job?
New Ideas?
Like blowing smoke?
Saying that things are getting better
when they’re not?
His ineffective foreign policy aka,
Blah, Blah, Blah? Please explain.

KR:”only around 100 Billion of the recovery act has circulated. ”
$237 billion of the stimulus act was in the form of immediate tax breaks. When do you define these as having “been circulated”?

“Seems like some don’t want to admit Obama and his team are doing a good job.”
When GDP goes to + 5%, I still won’t say Obama is doing a good job because the government has very little positive impact on GDP growth. If it was McCain, I wouldn’t say he’s doing a good job because the government has almost no control over the economy. The largest engine of economic force is us, the consumer. We start spending, economy booms. We stop spending, economy bombs, and the government can’t really do a darn thing about it.
The government can, however, impact the economy negatively with different policies, regulations, inflation with money printing, tarrifs, etc, but very little to impact growth.
“Health care is a mess and most people know it. Other countries are much more on par than the USA.”
You might be shocked to find that those “other” countries pay about the same, or more, in government health insurance than we do for private and have less choices.
And when you get seriously sick, you’ll see how many diagnosis techniques you’ll turn down because they cost too much.

“$237 billion of the stimulus act was in the form of immediate tax breaks. When do you define these as having “been circulated”?”
Ok so the amount of the stimulus spent is far above 10%, closer to 25%?
Just asking because the tax break is part of the 780B.
Either way, theres another 580B unaccounted for, of no connection to the stimulus.

“Today KR told me that a lobbyist faking letters to members of Congress on various organizations letterhead calling for congressional action was ok because everybody does it.”
OH No I didn’t. I said I do not differentiate lobbyists by party affiliation when I criticize them, you do.

Medekai:”Over a trillion dollars in debt, how can we paint that as a rosy picture? Here’s a thought to put that into perspective”
Perspective? $1 trillion dollars is almost 5 times more than the net worth of the 10 richest Americans in 2009. (Not top 10% – top 10, starting with Gates and Buffet, whose net worth has really plummeted with their foundation donations.)

“What’s the big rush for HC when it won’t go into effect until 2013? Answer: Ego.”
Actually I think the answer is because history tells us in 2010, the party bus crashes. Nearly every Presidency with full majorities have lost one in their first term. He has limited time to shove this stuff through before anyone can put on the brakes…
Except blue dogs of course.

“When GDP goes to + 5%, I still won’t say Obama is doing a good job because the government has very little positive impact on GDP growth. If it was McCain, I wouldn’t say he’s doing a good job because the government has almost no control over the economy.”
Is that why you spent months grousing that no one credits Bush for his economic miracle?

Yep, this is an encouraging sign, and of better things to come. While I am generally critical about this administration, I will buy this argument for sure that the Recovery Act pulled us out from the edge.
Posted by: baiter | Jul 31, 2009 3:14:57 PM
__________________________________
Wow! 5% of the Recovery Act money did that? So can we cancel the other 95% now. Just think of the interest we would save!

$237 billion of the stimulus act was in the form of immediate tax breaks. When do you define these as having “been circulated”?
Posted by: jhw539 |
——————
Not believable. Source please.

Agree with you KR, but ask yourself the deeper question: WHY does he want to push such obviously flawed legislation through? It’s not about doing the right thing, it’s about doing ANY thing he can take credit for. He knows all this stuff is DOA if it drags into 2010, which means his legacy will be one of the most colossal failures of living up to expectations in history. He is driven by nothing more than his own ego.

“I can name 1 in the 20th century and that would be Clinton.”
I’m too lazy to look it up again, but I remember finding about 3, one being Eisenhower I think, another was in the 20′s I think, and the other in the early 60′s I believe. Sorry I didn’t get the details before I posted. I respectfully retract it out of laziness to look it up.

Foghorn Leghorn:”Not believable. Source please.”
? The bill is published. EVERYONE has had more than enough time to read it by now, and just about every source from the WSJ to USAToday has done a summary. Taxcuts include:
$116 billion: New payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phaseout begins at $75,000 for individuals and $150,000 for joint filers.
$70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009. This was added by Republican amendment and reduced the amount of state aid significantly.
$15 billion: Expansion of child tax credit: A $1,000 credit to more families
That’s $200 billion of them, I’m sure you can handle looking up the rest yourself.

“I respectfully retract it out of laziness to look it up.”
I’m glad you expressed remorse for your crimes. Since I am a benevolent ruler, I sentence you to get up, get a cold beer, head out to the front porch and do nothing until it is time to get up and get another beer/use the bathroom.

CBO says 24% will be spent by the end of 2009, 74% by end of 2010, and 91% by end of 2011.

Interesting note, Jimmy Carter presided over a slightly below normal GDP growth during one of the worst economies of the last century.
This economic situation could be a long time to reverse. It really sux too because I’m one of those slimey government contractors the administration hates. Maybe I can get a job at TSA wanding sweaty airport travelers.

“Because Blue Cross costs my boss (who is likely to be closer in age to your inlaws than you are) and his wife $1600 a month.”
Blue cross Blue Shield employer group plan. Kicks ass. And before I got this job, and while I was waiting on my VA to go through, my wife and I bought insurace for 350 a month, 3,000 one time deductable and $15 copay.
It’s not hard to shop around and get something affordable. My old next door neighbor was complaining about not having health insurance and his cable + cell phone bill was 220 bucks a month. Priorities matter.

“I’m too lazy to look it up again, but I remember finding about 3, one being Eisenhower I think, another was in the 20′s I think, and the other in the early 60′s I believe. Sorry I didn’t get the details before I posted. I respectfully retract it out of laziness to look it up.”
It was Eisenhower…who had just gained those majorities when he came into office.
The opposition party gaining seats in the mid term election of either term of a President is the historical precedent but losing the majority seems rare.

“The opposition party gaining seats in the mid term election of either term of a President is the historical precedent but losing the majority seems rare.”
I thought it was when I looked up history in the house? I thought it effectively flipped in the 20′s sometime, Eisenhower, and (I think) 1964 (which probably doesn’t really count since Johnson wasn’t really elected in 63).

“To my parents, thats 1,000 dollars a month.”
Correction, thats 1,000 EURO’s a month, roughly 1340 dollars a month.

$237 billion of the stimulus act was in the form of immediate tax breaks. When do you define these as having “been circulated”?
Posted by: jhw539 |
In early July, White House officials estimated that the government had committed $158 billion for spending around the country, but only about one-third of that had been spent. Temporary tax cuts to that point totaled about $43 billion.
You can’t really call something immediate if it hasn’t happened yet. Tax cuts for 2009 and 2010 are not immediate in the context of stimulus.

KR, germans pay 2/3 of ins the comp pays 1/3, if your employed you don’t have a choice between ins. if your a laborer your in a different ins then an office worker.

“KR, germans pay 2/3 of ins the comp pays 1/3, if your employed you don’t have a choice between ins. if your a laborer your in a different ins then an office worker.”
I’m not sure what your saying? Krankenversicherung is 12% for their tax bracket, duel income, around 90k Euro a year. They are taxed at 50%, 12% of that is towards socialist health insurance. That 12% equals close to $1,000 Euro a month (1,340 US). That’s my parents, it changes as income goes up and down obviously. Point being middle class is paying for it at a comparable rate to what we pay, with less choices and less control. They also instituted a co-pay system of around 15 dollars last year, so its no longer “free”, even though they are paying more per month than we are with almost no co-pay.

no it is not

jhw539- exactly my point. Its a shame most americans dont grasp the monumental numbers involved in this mess. Hyper-Inflation is a real possibility, given the treasurys rush to print more currency and “purchase” treasury assets in excess of a trillion dollars. I would advise reading/watching asiatic news publications/broadcasts as they will tell a much different story,(they have english versions) particularly the chinese press, as they are the primary lender/holder of american currency today. They are not telling the same “rosy” story over there, they want a return on their investments, and it seems they bet on the wrong horse. Theres a reason the dollar is losing ground as the primary trading currency on the world markets. They dont buy the smoke and mirrors over there, and they’re stuck holding Billions in IOU’s. Partially to blame is the unfair trade practices as a result of the Clinton era globalization/trade agreements (thanks Wal-Mart!) but thats a whole other story.

Also, notice NOWHERE in this article is the actual or approximate GDP stated? I would think that was pertinent information! The problem is, if you take the GDP and put it next to the costs of the bailouts, stimulus bill, etc. , you would really worry people.
But there is good news, you good save a bundle by switching to Geico…sorry had to do it…

The BEA statement was an advanced estimate report and another one will be released at the end of August. The report is online, and it shows the GDP is in a free-fall.
A question to Mr. Obama: What will prop up the economy when the stimulus funding/government spending ends?

“You have one single data point that quite likely misses the 5% of health care consumers that result in 40% of the costs (at least that’s about how cheap and health versus needing catastrophic treatment and expensive breaks down in the US for under 65s).”
Jw, we are talking about two totally different things here. I’m telling you how much a family of 2 people are PAYING for their INSURANCE PREMIUM TAXES. NOT HOW MUCH IS SPENT ON EACH PATIENT. Are you that dense?
Look, if me and my wife are paying less per month for private health insurance PREMIUMS than my parents in Germany are for their government health insurance PREMIUMS (monthly input into the system), what on earth does that have to do with what is PAID OUT by the government or health insurance company?
If anything, what your data seems to show is more is being spent on OUR care aat LESS cost to us than over there.
Granted, the difference is more people are covered, but don’t think for a minute that this is going to save the middle class one dime of money. Its going to cost them much more.

Just 2 days ago Obama was saying only 17% of the Stimulus was spent and it would take time, today he is trying to take credit. Funny how the economy suddenly started to improve when his Health Care bill looks like it will never pass as he proposed it.

“Just 2 days ago Obama was saying only 17% of the Stimulus was spent and it would take time, today he is trying to take credit.”
____________________________________
The President points to various actions (not just the Recovery and Reinvestment plan) pulling the economic fall back from the brink.
He was pointing out the other day that greater impacts can be expected as the full measure of the Recovery act comes into effect.

Months ago, the Obama/Pelosi/Reid axis of evil rammed through a “Stimulus” plan more expensive than the Lousiana Purchase–when adjusted for inflation–and the only thing that has been stimulated is the DNC campaign coffers!

so if you have two or more clunkers at your house you cannot trade both of them for one car. The program is for one per
person.
Jimhenry
Blogger

Peter Schiff was right about the financial disaster a number of years ago, so it might be smart to listen to him today. “Happy Days Aren’t Here Again” at Financial Sence 7/31/09.

The part that really bothers me is when he says things like ‘the recession was worse than anyone had anticpiate.’ Biden made a reference to this a fvew weeks ago as well.
So, let’s get this straight:
(1)Obama takes Office with a major economic interruption in the market.
(2) Hammers through a Bill to to address the probem.
(3) Bill is not working. The problem is getting worse.
(4) Turns out the problem was worse than “anyone anticipated.”
(5) 6 months later we are stuck with a Bill that is not working written by guys that didn’t have their arms around the problem.
So – ummm – can we go ahead and take a looksee at this Bill now? It seems they are finally understanding the problem – but since it is not working it might just be because it addressed the wrong problem.
So let’s take a mulligan here. The Bill hasn’t done anything so we’ll rack this one up to inexperience. When you hit the ball in the water you take a stroke and hit another ball. Let’s take a stroke and hit it again.

The economy will recover and we can thank Obama and the Democrats for saving us from falling off a cliff by bailing out the banks, and passing a stimulus program that saved millions of jobs in education, health and government and provided extended unemployment benefits to those who really needed it. Obama is a saint in my book and history will show that he handled the economy in the right way to save us from the disasterous policies of the Republicans and the Bush/Cheney administration.

I can’t wait for fatso Limbaugh to have to eat his words (along with everything else in sight apparently) when Obama and his policies prove to be the right ones and pull us out of the mess that Bush/Cheney and the hypocritical Republicans left us in.

PUT THESE PEOPLE WHERE THEY BELONG
****
Is there any way to do anything about the all-caps folks?

During the Bush recovery the GDP went down .04 percent and the national media were all in chorus predicting a disaster, more bad days to come.
Now , the GDP is down 1% the national media are in chorus the economy is getting better.
Bush created 5 million job after the recession and 911. Obama has nothing to show except the media are giving us hope , they always do the dirty work for the democRats.

I’ve been, and will continue to be, a supporter of Obama’s economic policies.
But please, do us a favor, and stop engaging in the same spin techniques
that our sound-bite Republican friends
constantly employ.
The facts are that not nearly enouogh
of the stimulus was scheduled to kick in during 2009. What did kick in was not, by any delusional calculations,
enough to make a noticeable difference
in the GDP — any more than we can give
the credit to China’s more rapid and
effective deployment of its stimulus.
If our stimulus had been done right
the first time, we would by now be
seeing job loss and job gains roughly
canceling each other out, and Obama
would not have to be displaying such
half hearted ‘concern’ for those still
without jobs — or about to lose them.

Kate, For what it is worth, Mr. Limbaugh has actually lost a great deal of weight over the past year or so. So your childish personal insult is behind the times.
Had to laugh at your list of things that will in your fairy tale world lead us out of the recession post-stimulus:
you listed a. innovation. But the president’s policies do not encourage entrepreneurship and innovation. In fact, success in the business world is penalized and discouraged. For example, who in the pharmaceutical industry will be developing new medicines as quickly as today when the government sets pricing for those medicines and a ‘best practices’ board will not allow people to test new treatments and medicines.
2. new industries in green energy. New jobs in green energy have been more than offset by job losses in older industries in Spain. And at the moment those green energy jobs are being basically subsidized by the government. We can’t afford to do that forever. Since one of the best green energy sources, which is nuclear, is being actively discouraged, I do not hold out much hope for green energy providing large numbers of jobs or otherwise growing the economy.
3. tax breaks for the middle class. The tiny tax breaks will go away when Congress continues to pass more expensive bills, because everyone who does the math agrees that taxing the rich simply can not provide the revenue required. The middle class will be taxed further. Maybe not income tax, but certainly taxes on some sorts of goods, like soft drinks or sweets, or services, like cadillac insurance policies or plastic surgery.
4. reduced dependence on foreign oil. Then why not give the go ahead to building new nuclear plants and really do something effective about becoming more energy self-sufficient.
5. savings in health care. That would be funny if it were not so sad. So you are against the public option? That’s the only way we have even a shadow of a chance of reducing health care costs. A public option will mean health care costs more, not less.
I do not think the president is on the right course and speaking out against policies that are doing more harm than good is not just whining. Was it whining when we protested the Vietnam and Iraq wars? When I disagree with the government I say so. Don’t you?

i thought it was worse than expected only 2 weeks ago? weren’t we supposed to be discussing a new stimulus because the economy was so much worse than predicted? also, i thought the stimulus plan, according to obama only 2 weeks ago, wasn’t supposed to really take effect until 2011. now, the economy is better than expected because the stimulus is working so well? what are we going to hear next week? and the week after that? this is turning into a windsock presidency.

To the Obama haters! OBAMA IS RIGHT AGAIN ON THE ECONOMY. na na na na na..what you have to say for yourself now, or do you have to wait until tomorrow when Rush and Hannity are on the give you your sound bites.(Remember, they want Obama to fail) Thank God that Obama is our president for these times.

To the Obama haters! OBAMA IS RIGHT Posted by: Stanley | Aug 2, 2009 4:38:29 PM: “AGAIN ON THE ECONOMY. na na na na na..what you have to say for yourself now, or do you have to wait until tomorrow when Rush and Hannity are on the give you your sound bites.(Remember, they want Obama to fail) Thank God that Obama is our president for these times.” Stanley, you are right-on. President Obama is doing a tremendous job. You are also correct when you say Rush and Hannity want President Obama to fail. Now, if President Obama and the Administration can help all the folks who don’t play the stock market; the folks who have no clue what the GDP means; the ones who walk to bus stops to catch the first bus in the morning heading to house cleaning jobs in the suburbs. Let us rejoice when the Administration help those who spend most of their sleepless nights worrying about the next mornings’ breakfast; who were laid-off/let-go when GM and Chrysler and Ford and Toyota closed another plant; and, people who don’t comment on these blogs because a computer has never graced their abode. Let us offer great thanks when the Administration tell the many parents, children, friends, and grandparents, who have sons and daughters in Iraq and Afghanistan, that their sons and daughters will be on the next flight home. Let us praise President Obama and his administration when the unemployment rate drops as quickly as the recent rise in the Dow. Let us find no fault with this Administration when we no longer have bill collectors (the Chinese, the Saudis, the Japanese, the Kuwait and the Singapore governments) hovering over us like vultures; eagerly awaiting our demise. Stanley, you must know – you gotta know, that the “stimulus” was to stimulate lending institutions into allowing the the masses to get further and further into more and greater personal debt. Now, ask yourself: Do most Americans need more personal debt? Rather than the “stimulus,” package – where tax payers’ money was given to banks so the banks could in-turn loan us back the money we gave them; and, with the money (our money) the banks “loan” us, we go farther and farther into debt. Stanley, rather than a stimulus, the Administration should have encourage a 6-month “credit moratorium;” encouraging citizens to incur no new credit 6-months. That would have been something we all could cheer about years from now. It’s the D-E-B-T, generated by the C-R-E-D-I-T, that will eventually destroy our way of life.

Political spin…..nothing more.

Until our economy starts to create jobs again, and there is a least a 3% reduction in the unemployment figures, then and only then, will the recession truly come to an end. What is said here is that there is a stabilization effect
going on. Now on top of all this we are
being herded headlong into continued
massive spending, and YES, more taxes. Remember the Bush Sr. quote “Read my lips” on taxes? It cost him the election. Obama is proving that he is not trust worthy on his promises/committments, and appears to be driven primarily by his own social agenda. Thank the Founding Fathers for the check & balance system afforded us by our time proven form of goverment. The 2010 elections will bear this out.