Don’t Panic! - Time for some GDP truth.
Written by admin on February 6th, 2009 in Business News.
AT LAST HOUSE PRICES ARE UP:
http://www.express.co.uk/posts/view/83543/At-last-house-prices-are-up
Postal unions threaten industrial action over Royal Mail job cut plans:
http://www.telegraph.co.uk/finance/jobs/4537385/Postal-unions-threaten-industrial-action-over-Royal-Mail-job-cut-plans.html
BA freezes pay amid a £70 million pre-tax loss:
http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article5673955.ece
The Great Barclays debate:
http://www.marketwatch.com/news/story/The-Great-Barclays-debate/story.aspx?guid={B4D52782-428D-48C0-85BC-89B8A5CDDC97}
UK company collapses up 124% in three months:
http://business.timesonline.co.uk/tol/business/economics/article5674413.ece
GDP Calculation Issues
Economists warn of ‘feeble’ UK recovery:
http://www.independent.co.uk/news/business/news/economists-warn-of-feeble-uk-recovery-1545153.html
US economy shrinks at fastest rate since 1980s:
http://www.independent.co.uk/news/business/news/us-economy-shrinks-at-fastest-rate-since-1980s-1521894.html
Last line of this: European countries, including the UK, typically publish the raw quarter-on-quarter change.
so the 1.5% decline in UK GDP is actually more like a 6% annualised drop in GDP. Scared yet?
GDP Goosed By TARP (Maybe)
(currently at page 3 on his blog, it might have dropped down, so look for February 2nd, 2009, 6:38AM)
http://www.ritholtz.com/blog/page/3/
BEA National Economic Accounts
http://www.bea.gov/national/index.htm#gdp
Take the official annualised Q4 GDP number of $14.264 Trillion
Multiple the 14.264 by 1.29% - this is the ‘unsold inventories’ number = $184 Billion
Subtract the ‘inventories’ amount of $184 Billion to get $14.081 Trillion
Divide by 4 to get the GDP of October to December = $2.9 Trillion
Now subtract the $271 Billion they “added” to the economy through TARP = $2.629 Trillion
Multiply by 4 to get the annualised GDP value = $10.516 Trillion
Q3’s annualised GDP was $14.412 Trillion.
The decline from 14.412 to 10.516 is ?
Just over 27%. Annual GDP drop. Or a 6.75% drop last Qtr.
Do the math.
Wonder why Gordon Brown said “Global Depression” the other day? He knows this stuff.
Peace
Duration : 0:10:37
February 6th, 2009 at 5:57 pm
the way you did …
the way you did that math, i m surprised your head is nt spinning like the lil girl on in the exorsist. but well done. so you are saying that the decline in the gdp for the 4th Q was 27%?? i think that is what you are saying.please someone correct me if i am wrong.
February 6th, 2009 at 5:57 pm
BTW, you are a …
BTW, you are a freakin’ genius.
February 6th, 2009 at 5:57 pm
Hey Mike!
When …
Hey Mike!
When do you think our credit cards will be shut off?
February 6th, 2009 at 5:57 pm
you forgot to …
you forgot to remove hedonics that is added to GDP.
February 6th, 2009 at 5:57 pm
Thanks for NEVER …
Thanks for NEVER wasting my time! Your efforts are a highlight of youtube..
February 6th, 2009 at 5:57 pm
Mike,,
You have …
Mike,,
You have become my primary news source!
Thanks!!
February 6th, 2009 at 5:57 pm
When Obama signs …
When Obama signs stimulus bill — this will be the coup de grace for the U.S. dollar. Expect a significant dollar decline in the coming months and years.
February 6th, 2009 at 5:57 pm
oh 1 more thing, …
oh 1 more thing, you totally lost me, I had to watch this 3 times till I actualy got it… geez you ought to run for office.
February 6th, 2009 at 5:57 pm
Great video…as …
Maths??? Strange to us southerners. 
Great video…as always
February 6th, 2009 at 5:57 pm
I look foreward to …
I look foreward to your videos, extremely inteligent.
February 6th, 2009 at 5:57 pm
Bravo….bravo
Bravo….bravo
February 6th, 2009 at 5:57 pm
nice video mike, i …
nice video mike, i have been waiting for one of your extra long ones. the others end too quickly.
very interesting stuff yet again.
I have to say that your grey matter must be doing overtime every day.
keep em coming….
peace
February 6th, 2009 at 5:57 pm
Short for math.. I …
Short for math.. I love it.
The numbers are going to get scary. They will become incomprehensible and we will all scratch out heads figuring out what they mean.
Transparency means that they can’t hide the fact that the US is completely bankrupt. You watch, give it 30-90 days and the Pres will go on TV stating that there is NO money, i.e. demonetization of the dollar.
hello Amero.
February 6th, 2009 at 5:57 pm
what did i hear on …
what did i hear on glenn beck…something like a trillion thousand dollar bills stacked is 68 miles high…and if i spent a million dollars a day i would be out of money in 70 years, if i started that spending back when christ was born…talk about perspective
February 6th, 2009 at 5:57 pm
So you have the EU …
So you have the EU to deal with, little industry other than banking, and almost no import or exports taking place. The U.S. has politicians and a magic mulatto that want to put us into labor camps and spend the currency into oblivion until they can form a dictatorship. Which place do you think is better to be in?
February 6th, 2009 at 5:57 pm
27 percent sounds …
27 percent sounds pretty accurate, steel production in the formerly booming chinese economy got cut by what, 50 percent.
February 6th, 2009 at 5:57 pm
can you get rid of …
can you get rid of the dark curtain in the back, maybe a childs shower curtain, something vibrant and fun, or just tell us all the bad news in a real happy exciting way? 5 star, keep em comin
February 6th, 2009 at 5:57 pm
some perspective on …
some perspective on the numbers…
A million seconds is about 11.5 days
A billion seconds is aboput 32 years
A trillion seconds is about 32,000 years
February 6th, 2009 at 5:57 pm
Haaaa…you are so …
Haaaa…you are so funny! I love it!
Thank you so much for breaking all of us this down for people like me….!
Keep up the good work!
February 6th, 2009 at 5:57 pm
Maths scare me more …
Maths scare me more than the NWO… yikes!!!
February 6th, 2009 at 5:57 pm
WHERE can I acquire …
WHERE can I acquire these accountants that are coming up with this stuff? It boggles the mind. And my calculator has just exploded.
By the way, I’m thinking about playing this video backwards to see if I can hear any hidden messages
February 6th, 2009 at 5:57 pm
It’s OK!
It’s OK!
February 6th, 2009 at 5:57 pm
Anyone know of a …
Anyone know of a really good site in the UK which sells physical gold, not stocks. I want this gold to be in my possesion also not in a bank or vault somewhere.
Royal Mints markup at the moment is insane.
February 6th, 2009 at 5:57 pm
lol! Like I said …
lol! Like I said before Paddy -televangelist!!
February 6th, 2009 at 5:57 pm
Thats quite scary.
Thats quite scary.