Big business to the rescue – for now

Nope, economic growth will actually increase in the second half of this year. We know that homebuilding, mortgage lending, and real estate sales are all shrinking, but they won’t go to zero, and they’ll eventually stabilize at a lower level. In the mean time, the real part of the economy (energy, manufacturing, materials, services, etc.) continues to grow at a nice clip. In addition, exports are growing, and the trade gap is shrinking. If the trade gap shrinks from 6% to 5% of GDP (and shrink it must), that is $120 billion of more US GDP growth, or +1% additional GDP growth per year. It’s just that we’re so big an economy that these changes take so long. Hang in there, everybody.

I think what you mean to ask is will the government numbers for economic growth in the second half of the year decline.

With an election coming up I doubt it. What actually happens (is happening) out there probably wont be relevant.

I’m really beginning to believe that the government “numbers” are bogus. I have a hunch that the current administration tends to skew info to be percived in a favorable light for the party in office.

the increase in manufacturing is probably just normal bogus government made up numbers.

to quote paul :
“This report is important since it shines a light on the health of the manufacturing sector. Durable goods are defined as products that have a long shelf-life – three years or more – and includes stuff like cars, aircraft, computers and communications equipment.”

Let us take a look at cars — all american manufactures are producing fewer cars, aircraft — beoing is producting fewer planes because of problems with the dream liner, computers — manufactures are producing fewer, communications — yes apple and other phone makers are probably producing more phones.

But overall the manufacturing is down unless you are merely counting numbers of units produced. If you are looking at dollars produced the numbers are falling. It’s like the Prime Minister of China said they have to make a lot of T-shirts for America in order to buy just one 757 plane.

Why anyone is believing government released numbers after they said gas prices fell 2.5 percent in April of this year when they had increased 5.6 percent is beyond me. We are in trouble and our leaders are saying everything is fine and do not panic.

Our leaders have already lost the economic war China and Bin Laden have beeing waging against us for 10 years now.

Iraq is just a trap like Afganistan was to the Russian’s which led to their down fall. We are just next in line. We should have just done Iraq like we did Japan and dropped nukes on them until they surrendered.