GDP Going Up?

The buzz today was the announcement of an increased GDP for the 3rd quarter. Sounds great doesn't it, but hold on. The components of the GDP include business spending, consumer spending and of course government spending. It is to believe under any spinning of the numbers that business and consumer spending drove the increase, it must be government spending.

Government spending has proven to be nothing more than a caffeine jolt, causing a quick rush, but resulting in a hard fall when the buzz wears off. It should surprise nobody when/if the GDP takes a fall very soon. In fact, most economists are predicting a decline in the very near future. The question is how hard will this fall be and will it create another round of caffeine injections are an actual cure? We shall see.

See a Chart on GDP Components>>>

Dollar Just Keeps Falling

The US Dollar continues to fall and it appears that tide will continue. This is just one of many indicators that contradicts the cries ending the recession. The others being employment. Unemployment is predicted to remain 8-10%, making any recovery a joke. Secondly, the debt is now projected to equal the GDP (Gross Domestic Product). In Lehman terms, the US is broke and all it's production is going towards paying a debt, not good.