Is The Us In A Recession

A Stronger US Economy

Some of the headwinds that caused us to slow are turning into tail winds," said Mark Zandi, chief economist at Moody's Analytics.

For an economy just inching ahead 2 yrs after the "Great Recession" ended, 1-H of Y 2011 cannot end soon enough, as the natural and commodity market events that slowed growth in the US in January ,February and March to an annual rate of 1.9% fade into the history books.

The current Quarter is shaping up a little better; the average growth forecast of 38 top economists surveyed is 2.3%.

The economy has to grow 3% a year just to hold the unemployment rate steady, and keep up with population growth. And it has to average about 5% growth for a year to lower the unemployment rate by a full percentage point. It is holding at 9.1% now.

As welcome as the stronger growth eyed in 2-H is, the improvement will likely be small. For the final 6 months of the year economists forecast a growth rate of 3.2%.

This year, high gasoline and food prices have discouraged people from spending much on other things, from furniture and appliances to dinners out and vacations. That kind of spending fuels economic growth.

In the latest bit of sour news, the US government reported Monday that consumer spending was about the same in May as in April, the 1st time in a year that spending has not increased from the prior month.

The report confirmed the toll that high gas prices, price has been falling since Memorial Day. The drop has lowered the price of regular unleaded gasoline by 0.23 gal in the past month, to a national average of 3.57 gal at the pump according to AAA. The timing of the drop in gasoline prices is good because they usually rise during the Summer driving season.

And the bottle necks in the Global manufacturing chain are starting to clear as the Japanese factories that make cars and electronics resume production, that means that auto sales should improve later this year because the lost production from the earthquake is coming back faster than had been expected by many.

A sign of that rebound came when the Bank of Chicago reported Monday that manufacturing in the Midwest rebounded in May after falling sharply in April.

And last week, the US government said orders for machinery, computers, cars and other durable goods rose a bit in May after dropping in April. Economists attributed the turn around, in part, to Japanese factories that started to rev up early.

Weasel Zippers » Blog Archive » Welcome Back Recession ...

(Zero Hedge) — There may be those among the less than brainwashed lemmingerati out there who have noticed what, as we have pointed out for the past month when reporting on the various manufacturing and regional Fed indices, has been an epic collapse in the appropriate data series. As John Lohman so kindly demonstrates, the two month implosion has been beyond epic, and while certainly the biggest drop in the past decade, may also be the all time worst ever.

To the point of this post: the last time we had an economic contraction of this magnitude was back in February of 2008, which was two months into the most acute recession in post-depression history. We are confident that once the groupthink wraps its head around the fact that the auto production based renaissance is not coming, and the economy officially tumbles into the commode of Ben Bernanke’s fiat dungeon, the NBER will determine (with an appropriate 12-18 month delay), that the current recession started in April of 2011.

ZeroHedge a few months ago linked to this following report. We aren’t entering a double dip, we never left the first dip in the first place, we were just bouncing along on the bottom…. we are now entering the big event, a greater depression bigger than the one in the 40′s, and we have maybe a span of 10 yrs to fix it, or else, kiss our US dollar as the world’s reserve goodbye, hyperinflation, and the plumeting of middle class std of living.

http://www.shadowstats.com/article/hyperinflation-special-report-2011

But on Tuesday obama will go to Alcoa Davenport Works Factory in Bettendorf, Iowa, to tour the facility and discuss the critical role that the manufacturing sector plays in the American economy.” He will say how much he had done for manufacturing jobs. I hope he doesn’t read this article or else he will have to put another speech into the teleprompter.

And Corpsemen will be doing the heavy work, and MOH winners will all be coming home alive.

This guy is the biggest POS that has ever got TV time in this country.

And Michelle Bachman is a flake???

Screw you Chris Wallace, of Mike Wallace fame. When did you, or your leftist puke dad, ever ask that question of the obumbler? Never!!! Chris Wallace is a leftie in disguise. FOX News is a leftie organization now that the 2012 elections are in full swing.

I have noticed the swing over the last few months. I think that is why Beck is leaving. Call me a conspiracy theorist all you want. But FOX is going left. It sells more papers for Rupert Murdock. AKA Morlock the Shyster!

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