NO, Not Good AT ALL

No, the Economy Has Not Reached “Escape Velocity”

By Brad DeLong | February 6, 2014, 8:06 am

It’s starting to look like real GDP in the first quarter of 2014 will–seasonally adjusted–be 2.0%/4 above real GDP in the fourth quarter of 2013. -0.5%-point per year of that will be weather-related, but even without the weather factor the economy looks to be starting the year still growing at or below potential.

No “gap closing”.

No “escape velocity”.

Thanks to: Washington Center for Equitable Growth

Not Good, Not Good At All

Disturbing Graphs

From Lavaughn M. Henry at The Cleveland FED

FRED Says:

Over leveraged again?  Earnings growth from 2006-2008 approximates earnings growth from 2009-2014. PCE was equal to earnings growth in the last quarter 2013, with a decidedly negative trend since Q2 2011. This doesn't look like a healthy economy to me.

I Just Don't Get It

So we return to potential GDP by ~2016, yet here is Eric Cantor with the Big Lie:

"House Majority Leader Eric Cantor falsely claims that a new report confirms the long-held Republican belief that “millions of hardworking Americans will lose their jobs,” because of the Affordable Care Act. The nonpartisan Congressional Budget Office report says more than 2 million people will decide not to work, or will decide to work less, due to the law – not that they will “lose their jobs.”

 "In fact, the CBO report says in the short term (2014 to 2016) the law will increase employment while the economy is still weak."

CBO, Feb. 4: [T]he ACA’s subsidies for health insurance will both stimulate demand for health care services and allow low-income households to redirect some of the funds that they would have spent on that care toward the purchase of other goods and services — thereby increasing overall demand. That increase in overall demand while the economy remains somewhat weak will induce some employers to hire more workers or to increase the hours of current employees during that period.

We can only hope that Eric Cantor is one of those "hardworking Americans" who will lose their job.

A Moving Target At the CBO

The Budget and Economic Outlook: 2014 to 2024

Changes From CBO’s Previous Projections

Since May 2013, when CBO issued its previous baseline budget projections, the agency has reduced its estimate of this year’s deficit by $46 billion and raised its estimate of the cumulative deficit between 2014 and 2023 by $1.0 trillion. (That 10-year period was the one covered by the previous baseline.) Those changes result from revisions to CBO’s economic forecast; newly enacted legislation; and other, so-called technical factors, such as new information about recent spending and tax collections.


So who ya gonna believe, US or your jobless ass?

February 2 Is Finally Here

   

The second most important event of the least important month. Ground Hog Day obviously out shines most football.









Thanks to Weirdhut.com.

And TSA is losing the Body Scanners

Yusuf enters the Rock and Roll Hall of Fame!

It is official Yusuf / Cat Stevens is inducted into Rock and Roll Hall of Fame + Museum in 2014.

“It will certainly bring happiness to a lot of my loyal fans, and fulfilment to all those who have long-campaigned for it – not to mention how kinda embarrassingly good it makes me feel too. The sleepy Peace Train is beginning to chug its way slowly uphill, again.”

Yusuf

Lest anyone misunderstand, this is a good thing that was long overdue.

No Good Deed Goes Unpunished

From Andy Borowitz at The New Yorker:

Obama Says Americans Can Keep Their Damn Insurance

 WASHINGTON (The Borowitz Report)—Faced with a barrage of new questions about the Affordable Care Act, President Obama cut short a White House press conference today, telling the stunned press corps, “You know what? Everybody can keep their damn insurance.”
Glaring at the reporters, the President continued, “You heard me. If your insurance is crappy, then you just go ahead and keep it—the crappier, the better. Let’s pretend this whole thing never happened.”
A vein in his forehead visibly throbbing, the President added, “You know, I really wish I hadn’t spent the last three years of my life on this thing. I should’ve just gone around invading countries for no reason. That would’ve made everybody happy. Well, live and learn.”
As the reporters averted their eyes from the President, many of them looking awkwardly at their shoes, he concluded his remarks: “All those people out there who want to repeal Obamacare? Well, guess what: I’ll make their day and repeal it myself. Really, it’s my pleasure. But I swear that this is the last time I try to do something nice for anybody.”

I just visited healthcare.gov. It is working fine and the prices I checked for health insurance were spectacular.

My Man, Barry, has really and truly done IT.