Yeah, if you want to believe it. Mish’s has an excellent run down on the underlying weakness in the numbers (a real “must read”) and concludes thusly:
Digging beneath the surface there is nothing to cheer about in the GDP numbers. Moreover, this weakness is in the face of the largest stimulus measures the world has ever seen, not just in the US, but globally. Money supply in China is growing at 30% and housing bubbles are likely to pop in Australia, Canada, and the UK. Problems in Greece, Spain, and Iceland continue to mount.
GDP is a mirage of sand blowing in the wind. So is global growth. It is a mistake to believe government spending can possibly provide a solid foundation for a lasting recovery.
I’ve said it before and I’ll say it again: this “recovery” is all smoke and mirrors. 5.7% growth is consistent with a massive economic boom. What is booming in our economy? Someone tell me the sectors which are having a banner year? Outside of lobbying and government, no one is -and that tells the tale. We – and the rest of the world – are printing money and using it to put a false glow of health in the economic body.
Back last year, shortly before my father passed away, he was given a blood transfusion – and for a few days, he was in the pink…looked fabulous and he felt great. But it was a false spring…the internal bleeding and other issues where still there. Thus it is with our economy – we’ve given a blood transfusion to a dying man, but we have not the capability – while liberals run the show – of taking the steps which might actually cure the patient.
We need to start allowing Americans to make, mine and grow things – massive amounts of taxes and regulations have to be set aside so that we, the people, can get to work without government interference. Unless and until we do this, we won’t get any better – and if we keep printing and borrowing money to finance government deficits, we’ll actually be getting worse off, day by day. It is my contention that actual wealth continues to contract in the Untied States – that we are in a daily net loss as long as we are printing and borrowing like mad.
All of this will come home to roost – Obama and his Democrats hope it won’t happen until after November and they will do everything they can – including manipulate the data – to make it seem like things are getting better. But the day of reckoning comes – and I’m actually more convinced now, with these new GDP numbers, that they can’t keep the ball in the air past March. I could be wrong – in fact, they could by some chance keep this rolling even for a year or two more…but the time will come when it can’t be sustained. Not here and not anywhere else, either. Then the piper will have to be paid – and the longer we delay good policies, the more he’s going to demand of us.
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