MacroScope

Thanks Uncle Sam!

October 30, 2008

It’s good to have a rich uncle. Until he runs out of money.

Thanks to a big jump in government spending, the U.S. economy didn’t shrink quite as dramatically as expected. While investors breathed a sigh of┬árelief over the relatively modest 0.3 percent decline in third-quarter GDP, a look behind the numbers shows the main pillar of the economy crumbling.

Real disposable personal income — the extra money in consumers’ pockets that keeps cash registers ringing — fell 8.7 percent, the biggest decline since quarterly records started in 1947.

Considering that consumer spending accounts for about two-thirds of U.S. economic activity, that’s a scary number. So why didn’t GDP fall off a cliff? Government spending was up 5.8 percent, the biggest jump since the second quarter of 2003, which was right after the start of the Iraq War.

Comments
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Uncle Sam is bankrupt!

Now the credit card cruch is moving in and the FED can’t lower rates much further (is a destructive policy anyway), the road to hyper inflation speeds up.

Uncle Sam days are counted.

Thank the cabal of financial executives Greenspan, Paulson, Bernake and the Bush-Cheney Junta.

The dollar is totally debased and a worthless currency.

The next big crises will be the dumping of US treasuries.

But don’t worry for the financial cabal they have their trillions of US tax payers money already in their bailout pockets.

Posted by Jack Michigan USA | Report as abusive
 

Restructuring the financial system could be beneficial as the current failed and failing systems feed billions of dollars into a wall street system which was set to fail (see Davos comments on Wall street “parties”) long ago.
Politically leaders are not in touch with the grass roots, and need competent, main street, feedback through, unfortunately- the house and senate members- who have been swallowed by the lobbyists and are used to this sphere of life, “payoffs”, and struggle to keep recognition with their constituents.
I fear a large social upheaval when and IF the “ordinary man” finally understands what is happening to his country, that it is finished as a top financial power as China and other countries continue to grow strong economies, when what is really needed is for the leaders of the US to get “out of the box” and away from their current habits and navigate new waters, financially, socially, and ethically.
The current “bailouts” could have financed restructuring in health care, education, infrastructure, and have instead allowed precious billions to continually feed outdated financial vehicles and practices, which billions will soon run out of. credibility in the eyes of the rest of the world and the dollar will suffer greatly or perhaps collapse. George Soros has had a particularly good track record of being an astute and accomplished financial visionary, as have others, whose practices bear strong reading.
As an individual all I can effectually do is post this comment and keep my fingers crossed.

Posted by Bernard | Report as abusive
 

You mean “Uncle Scam” ! The markets cannot be judged properly because there is too much interference by our elected criminals on behalf of their financial backers. Our national debt jumped $5 trillion in one week due to the Housing and Economic Recovery Act. I would call THAT a big jump in spending. Now they want all the states to accept credit for issuance of bonds against the homes of the taxpayers because of their fraudulent friends on wall street. Sure don’t want that mess to be traced back to our elected officials. What’s amazing is the SERIOUS connection to wall street that both of our presidential candidates have. This latest “rise” in the market is because the fed is giving money away again cheaply. It won’t take long for the short sellers to pump and dump this rate change.

Posted by jason | Report as abusive
 

After seeing the HBO special on the Voter fraud of California , Florida , Ohio, and Michigan, and infact went in with a camera in Florida to a County Commissioner of Voting , and infact caught them trying to destroy voter regisistry tapes , which is a Felony , and had infact showed, that indeed fraud had been done, and California ,had indeed took away the contract of the voter machine Corporate, whom infact indeed invented the damn machines,and the Card that operates the machine, that American voters’ were decieved, and the Leaders at the time , Jeb Bush , and Kathleen harris , damn well knew of it !! That from the President and Vice President and all that indeed knew, should be branded as traitors of the United States of America , and defrauding the American people the due right of voting. And Every decent Attorney in the country should be fighting for this payday !!! Floridians , make the FBI stand guard, and Mr Obama you should demand it , all country registeries should be watched carefully , the real voting figures , from the ones given out !!! God Bless America , we do deserve the right to vote fairly!! Imprison the American Traitor George W. Bush , and Dick the crook Cheney!move over Benedict Arnold , your just a choir Boy compared to the 2 SOB”S!

Posted by Fpickern | Report as abusive
 

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