As if the increasing odds of a debt-ceiling disaster weren’t bad enough, now there’s this:
The U.S. economy came perilously close to flat-lining in the first quarter and grew at a meager 1.3 percent annual rate in the April-June period as consumer spending barely rose.
The Commerce Department data on Friday also showed the current lull in the economy began earlier than had been thought, with the growth losing steam late last year.
That could raise questions on the long held view by both Federal Reserve officials and independent economists that the slowdown in growth as the year started was largely the result of transitory factors.
Growth in gross domestic product — a measure of all goods and services produced within U.S. borders – rose at a 1.3 percent annual rate. First-quarter output was sharply revised down to a 0.4 percent pace from a 1.9 percent increase.
Economists had expected the economy to expand at a 1.8 percent rate in the second quarter. Fourth-quarter growth was revised to a 2.3 percent rate from 3.1 percent.
“The second quarter disappointed, but the first-quarter downward revision is more disturbing. It advances the pangs of concern. The debt ceiling nonsense is not going to help us. We’re already in an economy that is subpar,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
I for one welcome our new Texan overlords. (Well, not really.)
#PANIC!
Mt. Doom? PANIC! Plus, it fits with the Congresaional Hobbits theme.
I’m more worried about Italy. At last account, their debt was imploding. Which is all sorts of bad.
Yes, complete economic uncertainty brought about by the masterbatory debt argument tends to reduce future investment. The debt debate has already had a massive depressive impact on the economy, if the Republicans actually drive us over a cliff, I shit you not, there might not be a 2012 election because there might not be a United States.
And also, B. If we default Italy and a bunch of other countries are really up shit creek.
Yes, complete economic uncertainty brought about by the masterbatory debt argument tends to reduce future investment.
Did you read the article? The sub par economy came along before the debt ceiling controversy The sub par economy is the direct result of the irresponsible spending, over regulation and failed policies of President Obama and his Democratic Congress during the Obama administration’s first two years. You know, the same performance that allowed the Republicans to take over the House.
I for one welcome our new Texan overlords. (Well, not really.)
Yeah, heaven forbid we mimic the policies of pretty much the only state to effectively grow its way out of the recession. Clearly you’re not interested in real economic growth, you’re interested only in fantasy economic growth that fits your ideological predispositions, and is thus illusory and will never happen.
AMLTrojan – don’t tell us that *you* are buying onto the concept that North Dakota isn’t really a state ? (grin)
North Dakota is also doing well, based upon agriculture and increasing domestic production of resources and energy …
North Dakota is a one (or maybe two) trick pony. Texas is thriving because of a general, unabashed proclivity to foster the interests of people who want to do business, and not so much for liberal do-gooders.