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It’s The Republicans, Stupid! Why The Economy Shrank 0.1% In Q4

ProudProgressive 2013/01/31 14:00:07

It’s The Republicans, Stupid! Why The Economy Shrank 0.1% In Q4
By Elisabeth Parker
January 30, 2013

When the US Department of Commerce released their sucky Gross Domestic Product Report numbers this morning — which show that our economy contracted slightly during the last quarter of 2012 — White House Press Secretary Jay Carney didn’t bother waiting for the GOP’s blame games to begin. Instead, he fired the first pot shot, and laid the blame on the Republican Congress’s doorstep where it belongs:

“Consumer confidence overall has been rising, and consumer spending has been rising, but there’s more work to do, and our economy is facing a major headwind … and that’s Republicans in Congress,”

Actually, Carney showed great restraint in referring to the GOP’s flatulent gusts as a “major headwind,” considering the far more colorful language he could have accurately employed. According to Faux News, House Speaker John Boehner flung his malodorous cow pie into the fray by putting the blame on Obama’s defense cuts — as though continuing George W. Bush’s immoral and ruinously expensive wars could possibly do anything but further damage our economy. The Republicans sure know how to put the “gross” in our GDP.

Boehner’s spokesman Brendan Buck responded:

“These arbitrary, automatic cuts were a creation and demand of the White House in 2011 … Twice the House has passed legislation to replace them with commonsense cuts and reforms. If there was any uncertainty late last year about the sequester, it was because the Democratic-controlled Senate, per usual, never lifted a finger to pass a plan to replace it.”

Um … Commonsense cuts and reforms? You’ve GOT to be freaking KIDDING me. Despite ample proof that supply-side economics and austerity do not work — 30 years of tinkering with corporate welfare, tax breaks for the rich, deregulation, and public spending cuts have created a hollow-eyed, hollowed-out middle class — the Republicans keep promoting the same old crappy policies.

After 11 straight quarters of slow but continuous growth since spring, 2009, even this slight -0.1 % drop feels discouraging. And, as much as I hate to admit it, the Boner’s partially correct, at least in a technical sense. Defense cuts DID contribute to the current slow-down. According to Jeffrey Bartash from Marketwatch:

“The fourth-quarter retreat mostly stemmed from lower inventories and a plunge in military spending. Spikes in those two categories had given growth for the third quarter an exaggerated pop, and economists expected them to be reversed.

Superstorm Sandy and the year-end budget battle in Washington over the so-called fiscal cliff may have also hurt growth, economists say.”

But when you look at the big picture, the numbers prove that Boehner and the GOP’s economic policies are bad for economic growth, and dead WRONG. When our government cuts spending, our economy contracts, REGARDLESS of which programs get the axe. Our time in Iraq and Afghanistan has also proven beyond any doubt that — unlike domestic spending on roads, communications, education, and other infrastructure — spending money on unnecessary, unilateral wars around the world yields little return on investment and does little for our economy (unless you happen to own shares in Halliburton and Dubya’s other no-bid contractors).

Chad Stone, an economist with the Center on Budget and Policy Priorities also told the Huffington Post that:

“Austerity has been terrible for Britain and the rest of Europe. We’ve not been as bad as them, but we haven’t given our economy the support it needs.”

Even Bartash from MarketWatch has some good news to report:

“Yet other aspects of the GDP report showed resilience, such as consumer spending, home building, and business investment in equipment and software. Increases in those areas suggest the underlying U.S. economy continues to grow at a moderate rate of around 2%.”

So, put THAT in your orange tanning bed and smoke it, Johnny B.


Read More: http://www.addictinginfo.org/2013/01/30/its-the-re...

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  • The Lib Hater 2013/01/31 15:41:26 (edited)
    The Lib Hater
    +60
    Oh my GOD you are so brainwashed, did you know if the GDP shrinks any lower we will be in a recession because of 0bama? We are going to be out of money, AGAIN, in fifteen days; why are King 0BAMA, the progressives, and congress thinking the most pressing issue is what method to use for granting amnesty to 11 million PLUS Illegal Immigrants. This 0bama is deliberately ignoring the fixed 7.8% unemployment rate and the 88 million Americans Citizens not in the work force. Yep, a fight on how to reward lawbreakers apparently trumps the fact that the GDP of the United States shrank for the first time in three and half years, according to the Commerce Department. Dictator 0BAMA, why are you not focusing on our economy instead of doing interviews with Univision on immigration reform? Maybe one of you smart libs out here can answer this question for all of us "what you call" dumb conservatives; we can't figure it out. Why is 0bama ignoring the American People?

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  • beavith1 2013/03/14 04:26:11
    beavith1
    not even wrong...
  • Mj PINKYFINGERDOWN 2013/03/12 03:48:38
  • Mj PINK... Mj PINK... 2013/03/12 03:52:35
  • cut and paste king 2013/02/04 00:02:08
  • ☆stillthe12c☆ 2013/02/03 06:54:56
    ☆stillthe12c☆
    +2
    So the fact that Obama has cut oil drilling permits by 36% and was about to let the EPA add and 5000 regulations had no effect. How about all those infrastructure jobs that the President has talked about for the last four years. Seems to me that he threw that money at a bunch of losers.
  • beavith1 2013/02/02 23:07:16
    beavith1
    +3
    Utter nonsense. you can't spend your way to prosperity. no matter HOW hard you believe you can.

    any growth that we exhibit is DESPITE what Obama and the democrats are doing. the only thing keeping this house of cards standing is the Fed's 0% interest rates.
  • Patrick Henry~PWCM~JL 2013/02/01 23:39:01
    Patrick Henry~PWCM~JL
    +3
    Wow, and the economy sucked badly when the Communists had both chambers of Congress, why again? The economy is contracting, shrinking and getting ready to implode in large art because Obozocare takes full effect this year. It started to tank because Obozocare started last year. DUH! I can't believe anyone still reads the Huffington Post and thinks it is an informative outlet-just more Communist Propaganda for Mordor on the Potomac...
  • Maynard 2013/02/01 12:40:00
    Maynard
    +2
    DICTATORSHIP DEFINED.

    When the White House sends out the news reports, JUST LIKE THIS ONE.

    Todays news is nothing but READING THEIR SCRIPT.

    America deserves better.


    Poud? I thought you were better than one who would jump all over a partisan report, this one is PATHETIC, you seem good at finding the PATHETIC CRAP.



    Get real.
  • Soundstorm 2013/02/01 12:16:05
    Soundstorm
    +2
    Blame Bush, blame Sandy, blame climate change (formerly global warming), blame a video, blame the NRA, blame Rush and Fox News, blame the lame Republicans in the House who can't get a budget past Dirty Harry anyway. Anything but Obama wasting trillions on more government growth and his Obamacare Frankenstein.
  • StarWarsBob 2013/02/01 07:23:43
    StarWarsBob
    +2
    People are not looking at the full picture. Read the Bureau of Economic Analysis Report released yesterday.
    http://www.bea.gov/newsreleas...
    "Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 0.1 percent in the fourth quarter of 2012 (that is, from the third quarter to the fourth quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.1 percent."

    "The Bureau emphasized that the fourth-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 4 and the "Comparisons of Revisions to GDP" on page 5). The "second" estimate for the fourth quarter, based on more complete data, will be released on February 28, 2013."

    When looking at the other numbers, like real personal consumption expenditures, durable goods, services, real nonresidential fixed investment, equipment and software, and other measures, the fourth quarter performed much better than the third quarter 2012. Lets wait for the February 28th revised numbers before assumptions are made.
  • beavith1 StarWar... 2013/02/02 23:10:48
    beavith1
    +1
    SWB: if that was a legitimate observation, those unemployment results would be revised, too, but miss the results of three states (one of which is CA), for which and we see a .1% uptick?

    they're flailing.

    its all only being kept alive by 0% Fed interest rates...
  • StarWar... beavith1 2013/02/03 04:15:09
    StarWarsBob
    If you read the link, the BEA shows that real GDP increased by 2.2% for 2012 from 2011.
    "Real GDP increased 2.2 percent in 2012 (that is, from the 2011 annual level to the 2012 annual level), compared with an increase of 1.8 percent in 2011."

    Also, another economic indicator is the stock market, where the DOW closed on Friday as its highest level since October 12th, 2007, at 14,009. On the day President Obama took office, the DOW closed at 7,949. That's an increase of 6,060 points in four years and two weeks, or an increase of 76.2%. The lowest level of the DOW in the last four years was on March 9, 2009 where it closed at 6,547. Since then, the DOW has increased by 114%. The DOW is only 155 points away from its all time record close of 14,164 on October 9th, 2007. Hell, the DOW increased 96% of that amount on Friday alone. You can look for the DOW to set an all time record high next week.
    http://blogs.barrons.com/stoc...

    Unemployment is only one economic indicator, and since the country has suffered from the worst recession since the great depression, job numbers are expected to be slow for a few years after the recession ended. Job growth has been steady for the last 35 months, although slow.
  • beavith1 StarWar... 2013/02/03 04:34:29
    beavith1
    2.2% growth, if one can believe it, is still pathetically anemic.

    i can't wait to see what happens next month with those growth numbers.

    the Dow is a bubble. Everyone is piling in before it busts. when it does, soon, things will get bloody awful.

    Obama's recession will be a sight to see. and its coming.
  • StarWar... beavith1 2013/02/04 07:38:19
    StarWarsBob
    I disagree. While the Republicans in Congress did everything they could to keep the economy in the dumps for the last four years, they did so for what they thought was a political advantage in the Presidential election. They were wrong, most Republicans on this board were wrong, and you were wrong. I don't know how many times I read statements like "No President has been reelected with unemployment over 7%", and other such jewels of wisdom.

    Corporations are still making record profits, and the rich are still getting richer, and greed is a factor that politicians can't effect.

    While there might be another recession, it will be a minor one, and nothing like the great recession of 2007-2009. Even the CBO admits that.
    "Such fiscal tightening will lead to economic conditions in 2013 that will probably be considered a recession, with real GDP declining by 0.5 percent between the fourth quarter of 2012 and the fourth quarter of 2013 and the unemployment rate rising to about 9 percent in the second half of calendar year 2013."
    http://www.cbo.gov/sites/defa...

    If the Republicans refuse to increase the debt ceiling in March, and the country defaults on its debt, then there will be an instant recession, but it won't be President Obama's. It will be the Republicans in Congress's recession, a...
    I disagree. While the Republicans in Congress did everything they could to keep the economy in the dumps for the last four years, they did so for what they thought was a political advantage in the Presidential election. They were wrong, most Republicans on this board were wrong, and you were wrong. I don't know how many times I read statements like "No President has been reelected with unemployment over 7%", and other such jewels of wisdom.

    Corporations are still making record profits, and the rich are still getting richer, and greed is a factor that politicians can't effect.

    While there might be another recession, it will be a minor one, and nothing like the great recession of 2007-2009. Even the CBO admits that.
    "Such fiscal tightening will lead to economic conditions in 2013 that will probably be considered a recession, with real GDP declining by 0.5 percent between the fourth quarter of 2012 and the fourth quarter of 2013 and the unemployment rate rising to about 9 percent in the second half of calendar year 2013."
    http://www.cbo.gov/sites/defa...

    If the Republicans refuse to increase the debt ceiling in March, and the country defaults on its debt, then there will be an instant recession, but it won't be President Obama's. It will be the Republicans in Congress's recession, and the vast majority of Americans agree with this sentiment, by 45% to 34%.
    http://politicalticker.blogs....
    (more)
  • beavith1 StarWar... 2013/02/04 18:27:17
    beavith1
    +1
    all i can say about that first paragraph is just: no. you guys trumpet that as a reason. its an excuse.

    there will be exceptions to everything.

    http://xkcd.com/1122/

    still gotta go with that 'evil plan' nonsense?

    we're stuck in this morass because Obama thinks gov't can whimsically do things it can't. we aren't a 'governmentalist' economy. we're a 'capitalist' economy. Obama and the democrats choose to punish capital, so its never going to change.

    -are you kidding? since 2007, we've injected $7T into the money supply. M1 is twice the size that it was then. the dollar will be debased by half, at least. inflation will take off and the only way to reign that in will be to raise interest rates. at 6%, we're effectively Greece. unemployment will skyrocket.

    -we're already heading into a recession now, even according to your CBO link. when the S really HTF, you're going to trot out the republicans as the cause again. We won't default. the republicans seem to be in a rush to capitulate after posturing. the collapse will come when the stock market hiccups, or a world event gives pause, or a big earthquake happens - it doesn't matter. the conflagration is set. all we need now is the spark.
  • StarWar... beavith1 2013/02/05 05:44:40
    StarWarsBob
    No excuse here. The Republicans in the Senate filibustered every jobs bill that came up, including one that funded jobs for veterans called The Veterans Job Corps Act of 2012. They have filibustered a total of 19 jobs bills since President Obama came into office - all in a vain attempt to keep President Obama to one term in office.


    Here's a news flash for ya. Government spending accounts for 23% of our economy, and 14% of federal spending goes to the private sector contractors. That's double what it was in 2000. It was not the Democrats that did that.
    http://money.cnn.com/2012/07/...

    And we are not in another recession yet. The National Bureau of Economic Research determines when the country is in a recession, and the last one ended in June, 2009.
    http://www.nber.org/cycles.html
  • beavith1 StarWar... 2013/02/05 18:32:31
    beavith1
    -those jobs bills? kabuki.

    the gov't doesn't 'create jobs'.

    its the job of every minority party to make the majority party the next minority party. you guys take that fact and twist it into your little minded 'woe is me' hypothesis.

    - its no news flash. its an ongoing nightmare. taking from the private sector to give to the private sector, or worse, borrowing money to give to the private sector or even MORE worse, printing money to give to the private sector, is not a sustainable economic policy.

    -those results are always 'backward looking.' we wouldn't know when the recession 'started,' for sure until March or April.
  • StarWar... beavith1 2013/02/06 23:07:09
    StarWarsBob
    Rebuilding America's infrastructure is necessary - and long neglected. There are hundreds of bridges that are failing, roads and schools in disrepair, power grids that need to be modernized, and the private sector is not going to fund those kinds of projects. When President Obama said "you didn't build that", he was right. It was the government that built our dams, highways, schools, power plants, and all the rest.

    The American Jobs Act, filibustered by the Republicans in the Senate would have created one million new jobs that would have started the rebuilding of our infrastructure, and paved the way for progress in the future for the next generations.

    What is even worse that what you mentioned is corporate welfare - taking tax payer monies and giving it to corporations that are already making record profits. It's absurd. I guess for you Exxon-Mobile is not making enough profits. You want to cut their taxes further and let them make even more profits - when last year they made more profits than any corporation in the history of the country.
  • beavith1 StarWar... 2013/02/11 03:39:52 (edited)
    beavith1
    rebuilding infrastructure is just a democrat myth. if we had a functional economy we'd be doing it from cash flow. borrowing to do it is just stealing from our kids and grandkids.

    'you didn't build that' is OWS nonsense.

    Obama and his Congress can't create jobs. no matter how much you need to think they can. aren't you too old for fairy tales?

    Exxon Mobil is not the problem. diverting capital from the productive economy strangles the private sector and feeds a bloated public sector.

    FWIW, Exxon Mobil paid far more in taxes than they made in profit.
  • StarWar... beavith1 2013/02/16 05:50:51
    StarWarsBob
    Rebuilding infrastructure is just a democrat myth???
    What is wrong with you? Did you forget what happened five years ago on the I-35W bridge in Minneapolis, Minnesota? Here's a reminder.
    democrat myth wrong forget years i-35w bridge minneapolis minnesota reminder
    According to the Department of Transportation, 26% of all bridges in the US are "either structurally deficient or functionally obsolete."
    That represents 161,892 bridges in the US.
    That's 72,868 bridges that are structurally deficient, and 89,024 bridges that are functionally obsolete.
    http://www.infrastructurerepo...
    Bridges in the US are usually built to last 50 years, and the average bridge in the US is 43 years old as of 2009. Democrat myth?
    Nice try. Look at the damn facts.
  • beavith1 StarWar... 2013/02/17 18:55:19
    beavith1
    a myth in the sense that its being used as a policy hammer.

    like i said, if the economy was functional, we'd be making these repairs out of cash flow.

    stealing from our kids and grandkids because its politically beneficial to the democrats, today, is what is the execrable policy is..
  • StarWar... beavith1 2013/02/18 04:55:45
    StarWarsBob
    The economy is functional - its just in a slow growth mode. The DOW is set to break the all time record high of 14,164 in early March.

    Nobody is stealing from kids and grandkids - except the greedy dogs of Wall Street and the big banks. The economy today is the result of the great recession. President Obama has been responsible with federal spending. The proof is in the facts, and the facts are presented well by Forbes magazine.
    "Who is the smallest government spender since Eisenhower?"
    http://www.forbes.com/sites/r...

    The Republican MYTH is that President Obama is the largest spender of all time.
  • beavith1 StarWar... 2013/02/25 18:58:54
    beavith1
    -'slow growth mode' is an oxymoron. If we don't grow by 3%/year, tax revenue projections can't keep up with expenditure growth.

    which is where we find ourselves now. borrowing 40+ cents on every dollar spent.

    -the Dow is a bubble.

    -when we borrow to fund the day to day obligations of the gov't, its deferring today's expense to be paid tomorrow. that's what you do when you monetarize debt, especially at the scale that we're doing it today.

    -Clinton. if you're going to try and use that ridiculous chart showing Obama as the smallest spending growth (as percentage of GDP) please know (if you don't already) that is nothing but massaging numbers. Without a DOUBT, Obama has spent more dollars than most ALL the presidents before him. Correct for inflation, if you must. he's STILL spent 2X to 3X what Bush has done, our previous most spendy president.
  • StarWar... beavith1 2013/02/26 04:44:01
    StarWarsBob
    I would agree that the stock market is in a bubble ..... IF corporations were not making record profits - BUT THEY ARE.
    According to the Bureau of Economic Analysis report of December 20, 2012, "Corporate profits with inventory valuation and capital consumption adjustments" for third quarter 2012 was at $1.9676 trillion, an all time record, and up by 7.5% from third quarter, 2011.
    (See table 11, line 1).
    http://www.bea.gov/newsreleas...
    The value of corporations is directly connected to the value of their stock, and as corporations make record profits, their stock values increase.

    According to behavioral finance theory, stock market bubbles are caused by cognitive biases that lead to groupthink and herd behavior. That is not what is happening to the market today.

    "Correct for inflation, if you must. he's STILL spent 2X to 3X what Bush has done, our previous most spendy president."

    That is simply not true. Here are the facts and data.
    FYEAR ... GDP..................... Government spending
    2001 ...... $10.2862 trillion ...$3.42854 trillion
    2002 ...... $10.6423 trillion ...$3.69749 trillion
    2003 .......$11.1422 trillion ...$3.93454 trillion
    2004 .......$11.8533 trillion ...$4.13175 trillion
    2005 .......$12.623 trillion .....$4.39710 trillion
    2006 .......$13.3772 trillion ...$4.69784 trillion
    2...







    I would agree that the stock market is in a bubble ..... IF corporations were not making record profits - BUT THEY ARE.
    According to the Bureau of Economic Analysis report of December 20, 2012, "Corporate profits with inventory valuation and capital consumption adjustments" for third quarter 2012 was at $1.9676 trillion, an all time record, and up by 7.5% from third quarter, 2011.
    (See table 11, line 1).
    http://www.bea.gov/newsreleas...
    The value of corporations is directly connected to the value of their stock, and as corporations make record profits, their stock values increase.

    According to behavioral finance theory, stock market bubbles are caused by cognitive biases that lead to groupthink and herd behavior. That is not what is happening to the market today.

    "Correct for inflation, if you must. he's STILL spent 2X to 3X what Bush has done, our previous most spendy president."

    That is simply not true. Here are the facts and data.
    FYEAR ... GDP..................... Government spending
    2001 ...... $10.2862 trillion ...$3.42854 trillion
    2002 ...... $10.6423 trillion ...$3.69749 trillion
    2003 .......$11.1422 trillion ...$3.93454 trillion
    2004 .......$11.8533 trillion ...$4.13175 trillion
    2005 .......$12.623 trillion .....$4.39710 trillion
    2006 .......$13.3772 trillion ...$4.69784 trillion
    2007 .......$14.0287 trillion ...$4.92325 trillion
    2008 .......$14.3691 trillion ...$5.33988 trillion
    2009 .......$13.939 trillion .....$5.97004 trillion
    2010 .......$14.5082 trillion ...$5.94298 trillion
    2011 .......$14.9586 trillion ...$6.05965 trillion
    2012 .......$15.6015 trillion ...$6.23169 trillion
    http://www.usgovernmentspendi...

    FY2006 was the last year that Republicans controlled both houses of congress and the white house, and federal spending was at $4.69784 trillion. Federal spending has increased by $1.52285 trillion for FY2012, or an increase of 32.6%, NOT 200% or 300% like you erroneously claim.
    (more)
  • beavith1 StarWar... 2013/02/28 05:31:18
    beavith1
    +1
    its not the profits that corporations make. that's not a problem. its the corporations that struggle and fail.

    Walmart has noted Feb was HISTORICALLY bad. JCP just wrote off 500M in 4Q12. Sear/Kmart and Best Buy are struggling. that ought to tell you that the retail portion of the economy is on the ropes.

    groupthink and herd mentality is EXACTLY what is happening today. where else can they go if bonds are paying stupidly low rates and federal paper is near 0%? the only thing that paper has going for it is its perceived 'safety'.

    -my bad on the 2X- 3X thing. i meant 'addition to the national debt. i'm sorry that you did all that work...
  • StarWar... beavith1 2013/03/02 02:38:53
    StarWarsBob
    Retail sales in the US were up by 5.2% for 2012 from 2011.
    http://www.npr.org/blogs/thet...
    That's pretty good considering that unemployment is still at 7.8%.

    The last real stock market "bubble" was right before the great depression. There were smaller bubbles, specifically for the S&P that ended in March, 2000, but that is not what is happening to the market today.
    "What we’re seeing now is a stock market boom that is simultaneously driving Americans’ wealth higher, supporting economic growth, and is well-supported by the fundamentals of what companies are earning."
    http://www.washingtonpost.com...

    The DOW will hit an all time record high next week. It closed today at 14,054, or just 110 points below the all time record high of 14,164 of October 9, 2007. As long as the Fed keeps interest rates low and corporate profits remain high, the market will continue to rise.
  • beavith1 StarWar... 2013/03/02 03:08:28
    beavith1
    -look at 2012 into 2013. i'm talking NOW not last year.

    -right. the dotcom bust. this one is well supported by the fundamentals? ?!? what 'fundamental' ever included 0% interest rates? you're whistling past the graveyard on that one... there's bunches of talking heads trying to talk the market up, but that's no fundamental.

    -absolutely true. until it busts...
  • StarWar... beavith1 2013/03/07 04:47:03
    StarWarsBob
    The stock market is not going to burst - because the rich are making tons of money with it. The corporations are making record profits from their sales overseas as well as in the US. The new global market is what is driving growth - not sales in the US.

    The previous bubbles were specific - the dot.com tech bubble with the S&P 500, the housing bubble, but there can not be a "bubble" with the DOW - because those 30 companies that make up the DOW are making decent profits. Nine of those 30 companies are at a 52 week high, and Home Depot, Travelers, Disney, J.P. Morgan, 3M, Pfizer and American Express all up between 11.5% and 13.9%, outdone only by Hewlett-Packard’s blistering 43% advance since January 1. 2013 numbers, not 2012.
    http://blogs.marketwatch.com/...
  • beavith1 StarWar... 2013/03/07 05:03:07
    beavith1
    everyone was making tons of money on their houses and that busted, too.

    the US economy is stalled. Europe is stalled. China is messed up.

    Bernanke is giving 0% money away and M1 is growing apace. the only thing keeping us 'stalled' IS that money. if that wasn't being offered, we'd be deflating. this is the same tack that Japan has tried for 2 decades.

    it hasn't helped them, nor is it helping us. its the economic equivalent of crack addiction...
  • StarWar... beavith1 2013/03/14 03:01:40
    StarWarsBob
    Europe is in trouble because of a few bad apples in the EU, and austerity measures are making the problems worse for them (Greece, Spain, Portugal, Ireland).
    If the Republicans succeed in getting government spending cut in significant numbers, it will destroy our economy and what little growth we have now. (The revised 4th qtr. GDP growth was at 0.1%, and at 2.2% for all of 2012).
    http://www.bea.gov/newsreleas...
    China has its own housing bubble. Economic stagnation is global as a result of the global recession.

    0% money is not the problem for the US. That rate (.25% - 0%) kept this country out of a second great depression, and went into effect on December 17th, 2008, and is expected to stay there at least through 2014. In 2003, the fed funds rate was at 1% to address the recession of 2001, and went up as high as 5.25% in June, 2006..Many thought that deflation was happening in 2003, but it was not.
  • beavith1 StarWar... 2013/03/14 04:32:19
    beavith1
    you can't know what didn't happen because of what somebody did or didn't do.

    its raw rhetoric at best. mere speculation at worst.

    as we pile on the debt, and inflation takes hold, interest rates will climb. hec. if unemployment dropped to 6.5%, Bernanke says that he'll start raising rates.

    we're perched on a knife edge.
  • john ri... beavith1 2013/03/02 04:42:11
    john richardson
    +1
    Bush told them MnDOT was given federal money to repair the bridge a year earlier but Minnesota spent the road money on other projects but again look who gets the fault.
  • beavith1 john ri... 2013/03/03 06:29:56
    beavith1
    +1
    i didn't know that. go figure.
  • john ri... beavith1 2013/03/03 14:08:03
    john richardson
    I found the response on u-tube , he explained the funding and how they didn't spend it for the intended purposes. However the part I remember he told the press afterward Mn used the money for social programs instead.
  • beavith1 john ri... 2013/03/03 18:30:22
    beavith1
    +1
    i'm rather surprised. usually gov't money is 'directed' to a specific purpose.

    unencumbered federal money is not that common.
  • dasimon1 2013/02/01 05:28:33
    dasimon1
    +3
    You need to be sent to Egypt in a tank.Progressive Glich = Positive Scumbag!!~
  • Larry 2013/02/01 04:47:57 (edited)
    Larry
    +2
    LOL true Idiot he actually listens to puppet Carney
  • RoyJLores 2013/02/01 04:14:35
    RoyJLores
    +1
    What a moronic Establishment tool you are...
    moronic establishment tool
  • Dustin 2013/02/01 03:51:11
    Dustin
    +3
    I love how the senate and executive office is held by democrats.And they have strongarmed loopholed around even the smallest snags when passing policy. But yet they still blame republicans it makes me sick. Because people buy it fact is several presidents have been give crap deal and got in right before a recession. But that being said this is the slowest recovery ever using u-3 unemployment numbers sure some recovery using u-6 unemployment numbers(people who are not working but fall into categorys that president likes to ignore to fluff his numbers).

    Stop ignoring facts every time democrats do something stupid they go gop gop. Then all liberal news ignores it like fast and furious the illegal gun operation. No bush started that program not me. Technically true but it ended two years before obama took office and did not recklessly hand out guns they all had trackers or were disabled. And when house did investigation like they were supposed to Obama happened to seal the records why would he do that if Bush started it. Then it would have cleared his name and made the gop look bad. But rather he sealed all files preventing a investigation, hell the people who testifyed against him saying whitehouse directly ordered it. They still have their jobs and did not even get demoted if ...

    I love how the senate and executive office is held by democrats.And they have strongarmed loopholed around even the smallest snags when passing policy. But yet they still blame republicans it makes me sick. Because people buy it fact is several presidents have been give crap deal and got in right before a recession. But that being said this is the slowest recovery ever using u-3 unemployment numbers sure some recovery using u-6 unemployment numbers(people who are not working but fall into categorys that president likes to ignore to fluff his numbers).

    Stop ignoring facts every time democrats do something stupid they go gop gop. Then all liberal news ignores it like fast and furious the illegal gun operation. No bush started that program not me. Technically true but it ended two years before obama took office and did not recklessly hand out guns they all had trackers or were disabled. And when house did investigation like they were supposed to Obama happened to seal the records why would he do that if Bush started it. Then it would have cleared his name and made the gop look bad. But rather he sealed all files preventing a investigation, hell the people who testifyed against him saying whitehouse directly ordered it. They still have their jobs and did not even get demoted if they were commiting perjury on international incident(this event cost several 100 mexican lifes) and it was the evidence that started the trial if they had done that wouldnt they have at least been fired or demoted.

    Alot of people are pissed that gop is using debt ceiling to make congress pass a budget. Its hard work you actually have to say no to things. But its one of those things that even children do you give them two bucks and they get a extra milk at school or candy bar but they dont get five because they want to be able to do it all week. No adult that doesnt budget has good finances like my brothers wife they have almost gone into bankruptcy like 5 times because she refuses to budget. But its important and even more so for government for every dollar they print to pay bills you make less its called inflation devaluing dollar.
    (more)
  • tommyg - POTL- PWCM-JLA 2013/02/01 03:35:40
    tommyg - POTL- PWCM-JLA
    +4
    You know what 2 quarters of contraction is called, don't you Proud.

    Gonna blame that one on the Repubs too? lol

    The blame game grows weary Proud. I see it in the responses below.

    The jig is up....
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