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US Economy Beats Expectations … Thanks To ISIS

“WAR ON TERROR II” INFLATES THE AMERICAN ECONOMY … By FITSNEWS || Surging government “consumption” – including a massive jump in defense spending – drove the U.S. economy to a better-than-expected 3.5 percent increase in gross domestic product (GDP) during the third quarter of the year.  Meanwhile second quarter growth was…

“WAR ON TERROR II” INFLATES THE AMERICAN ECONOMY …

By FITSNEWS || Surging government “consumption” – including a massive jump in defense spending – drove the U.S. economy to a better-than-expected 3.5 percent increase in gross domestic product (GDP) during the third quarter of the year.  Meanwhile second quarter growth was revised to 4.6 percent while the first quarter contraction now stands at negative 2.1 percent.

Government spending accounted for 0.83 percent of the current quarter’s growth – the highest “stimulus” since the second quarter of 2009.

The problem?  Obviously the billions of dollars in new defense spending – driven by the successful fearmongering campaign against the Islamic State in Iraq and Syria (ISIS) – are unlikely to do anything to improve the broader consumer economy.

They’ll benefit a select few (including this guy) … but not you.

Oh and this growth is taxpayer-subsidized … meaning you, your kids and grandkids are going to have to pay for it eventually (which of course reduces your ability to participate in the consumer economy).

Which reminds us: Personal consumption – i.e. what’s supposed to be driving the economy – grew by only 1.8 percent during the third quarter, down from 2.5 percent during the second quarter.

So thanks ISIS … for nothing.

Courtesy of our friends at Zero Hedge here is the third quarter in chart form …

(Click to enlarge)

q3 gdp

(Pic: Via)

And the government consumption hike …

(Click to enlarge)

q3 stimulus

(Pic: Via)

And the defense spending jump …

(Click to enlarge)

defense

(Pic: Via)

Cut and dried, right?

Not to CNN. According to its coverage, the U.S. economy is “chugging along” and “gaining momentum.” In fact the outlet – which barely mentioned the government growth component of this number – had the audacity to claim employment is “picking up” and that the GDP expansion was due to “more jobs” which led to “higher incomes and more spending.”

Really?

***

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10 comments

Just another guy October 30, 2014 at 11:56 am

Dear lord just link zerohedge and be done. Maybe zerohedge will pay you for traffic.

Reply
The other Another Guy October 30, 2014 at 12:44 pm

Is that you Tyler?

Reply
Just another guy October 30, 2014 at 2:14 pm

Maybe.

Reply
Deo Vindice SC October 30, 2014 at 11:56 am

We’ll be there at least 4 more decades. By then oil won’t be needed as much. Thanks George !

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Rocky October 30, 2014 at 12:00 pm

As RENO 911 said once – What happens when all the oil is gone? We win.

Reply
Bible Thumper October 30, 2014 at 12:30 pm

You got the wrong chart for defense spending. Last two charts are the same.

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Rocky October 30, 2014 at 4:46 pm

Oh Christ. A 20 trillion dollar economy, and suddenly $30 billion is going to move the needle? For goodness sake. And Einstien – look at the graph. Seems like 3rd quarter is historically the big Pentagon spending quarter – year after year. Economy is picking up, we’re in the recovery, heading for an expansion. At least in most states that don’t start with South, and end in Carolina.

Reply
Deo Vindice SC October 30, 2014 at 7:04 pm

that is just media. The SC trolls control all that, hope ya don’t get ebolia, K bros would be devastated.

Reply
FastEddy23 October 30, 2014 at 5:11 pm

Ah, yes, the military / industrial complex is on the move again.

Reply
FastEddy23 October 31, 2014 at 4:21 am

Manipulation of commodities, QE3.5 by fed this PM, is attempt to boost Japan’s recent failing tax increases will only boost republicrat hysteria, trigger early “Santa rally” – CNBC headline … Oh Bummer when hangover hits mid-December.

Reply

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