The chart below shows the draw down (the percent below the previous peak) of each sub-component of GDP (C + I + G + NX - NI). What this shows is that while things are bouncing back, outside of government spending all other areas are still below their previous peak (consumption is slightly down).
All four of these sub-components have been below the previous peak for 9 straight quarters. Is this really so different?
Compared to the last three recessions... yes.
During the early 00's recession we only had this happen during one quarter, during the early 90's recession this didn't happen once, and during the early 80'd we saw a similar situation for about 2 quarters. We have to go back to the recession of the mid 1970's when this situation occurred 11 straight quarters.
During that time there was stagflation, which is not a good thing, but at least it prevented nominal debt from accumulating in real terms; not the case during the most recent disinflationary period.
Source: BEA
Friday, October 29, 2010
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What's different is that all the theft and thieving was/is being done as a planned demolition by both crime syndicates we call political parties. Sworn Testimony concerning securitizations has plainly brought out this fact for all to see. We are flat broke, and the spinning won't change this fact.
ReplyDeleteWow no friday song, I am bemused.
ReplyDeleteLOL
Have a great weekend!
been posting less (and not sure if anyone except you looks for it). may make it a bi-weekly affair
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