GDP at 1.8% - Initial Claims at 429k- - NOT GOOD.

[GigantorX]

http://www.zerohedge.com/article/q1-gdp-prints-18-misses-consensus-20-plunges-31-q4-initial-claims-surge[/b]]http://www.zerohedge.com/article/q1-gdp-prints-18-misses-consensus-20-plunges-31-q4-initial-claims-surge

Key highlights:

US GDP Price Index (Q1 A) Q/Q 1.9% vs. Exp. 2.3% (Prev. 0.4%)
US PCE Core (Q1 A) Q/Q 1.5% vs. Exp. 1.4% (Prev. 0.4)
US Personal Consumption (Q1 A) Q/Q 2.7% vs. Exp. 2.0% (Prev. 4.0%)
and the kicker:

US Initial Jobless Claims (Apr 23) W/W 429K vs. Exp. 395K (Prev. 403K)
Nobody could have predicted the economic devastation (even as inflation surges). Nobody. And certain not the wise oracles at the Federal Reserve.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Jobless claims surge up to 429k on expectations of 395k and up from a previous print of 403k.---NOT GOOD

GDP at 1.8% on expectations of 2% and down from 3.1%---NOT GOOD.

Inflation UP

Consumption DOWN

---Not good, not good at all.

[Bindare_Dundat]

Bernanke admitted that there is now a tiny bit of inflation creeping into the system but it's nothing to be worried about becasue the public can absorb it. Has he ever been wrong?

 




 

[Bindare_Dundat]

Federal Reserve Bank Chairman Ben Bernanke told reporters at the Fed's first ever press conference April 27 that the Fed's Open Market Committee will not change existing policies that are suppressing interest rates to nearly zero and will complete purchase of $600 billion in federal government debt securities. Bernanke also predicted inflation will stay under control and the economy will grow only slowly for three more years.

"We are also looking very carefully at inflation," Bernanke told reporters, adding that "inflation, is at least temporarily higher being driven by gasoline prices and some other commodity prices. Our expectation is that inflation will come down towards a more normal level."


Translation: You are royally FUCKED!

[Soul Crusher]

Summer of recovery on the way bitches! 

[GigantorX]

Bernanke admitted that there is now a tiny bit of inflation creeping into the system but it's nothing to be worried about becasue the public can absorb it. Has he ever been wrong?

 




 

Bernanke hasn't been right on a single thing, not one thing. How is the public supposed to absorb the inflation with U.E. at 10%, stagnant/falling wages and collapsing home values?

How much have these Keynsian idiots spent to achieve this lofty goal of 1.8% "growth"?

3.5 trillion dollar budget

1.5 trillion dollar deficit

800 billion stimulus

Trillions + from the Fed.

EQUALS ------Shitty growth.

Guess what folks!....IT ISN'T WORKING.

[GigantorX]

Federal Reserve Bank Chairman Ben Bernanke told reporters at the Fed's first ever press conference April 27 that the Fed's Open Market Committee will not change existing policies that are suppressing interest rates to nearly zero and will complete purchase of $600 billion in federal government debt securities. Bernanke also predicted inflation will stay under control and the economy will grow only slowly for three more years.

"We are also looking very carefully at inflation," Bernanke told reporters, adding that "inflation, is at least temporarily higher being driven by gasoline prices and some other commodity prices. Our expectation is that inflation will come down towards a more normal level."


Translation: You are royally FUCKED!

They and the Admin. having been lying for a long ass time. The Fed actually acknowledging the existence of inflation means that inflation is here and it is going to be very, very bad. They have to do QE3, either outright (which would kill the dollar completely) or by reinvesting whatever they have made on their balance sheet. Either way, we will suffer.

[Soul Crusher]

Looks like schiff was right again.

[Bindare_Dundat]

Bernanke totally contradicted himself. First he says there is no real inflation and then he said that higher prices are the result of supply and demand, then he says inflation will come back down down to a more normal level. Well, if all this inflation is a result of supply and demand, then why would it come back down with all this talk of exploding EM?  Are emerging markets going to tank again in the near future now? The guy is all over the map and a full of shit liar.  

[Soul Crusher]

Don't kid yourselves - bama loves the birther issue being out front and center.

[George Whorewell]

Don't kid yourselves - bama loves the birther issue being out front and center.

I'm telling you-- this is a huge victory for the GOP. Trump is basically doing the rights dirty work (unintentionally or not) while Osamas record speaks for itself.

[Kazan]

We were listening to Bernanke, and watching prices of Gold, Silver,Oil...... go up, the longer he talked the higher they went. Note to Bernanke, shut the fuck up and stop giving press conferences

[MCWAY]

But, but, but REJOICE!!!

Obama sure showed them birthers!!! 

[dario73]

It's all Bush's fault!!!!

Three years into his presidency and I guarantee you he won't take responsibility for anything that has gone wrong since he took office. Pathetic.

[Soul Crusher]

Like we have said - this is intentional.

[kcballer]

Another oil induced recession.

Time to move to a cheaper fuel people.

[Soul Crusher]

Like what? 

[Kazan]

Like what? 

Exactly, like what? People don't seem to realize just how many things petroleum products are used for. It goes much farther than gas.

[kcballer]

Exactly, like what? People don't seem to realize just how many things petroleum products are used for. It goes much farther than gas.

oh i realize Kazan.  That is why the cost rising is crippling the economy like it did in 2007-2008.  Cheap oil runs GDP growth.  Cheap oil is dead so GDP growth dependent on cheap oil is also dead.  Expect slower GDP progress or look into an alternative.  All this like what? is stalling bulls*t that gets us no where but on the same road to slower GDP growth and oil shock induced recessions.  No one knows what yet, but they know oil is not it.

Anyone with half a brain who reads and understands where oil is going knows this. 

[Kazan]

oh i realize Kazan.  That is why the cost rising is crippling the economy like it did in 2007-2008.  Cheap oil runs GDP growth.  Cheap oil is dead so GDP growth dependent on cheap oil is also dead.  Expect slower GDP progress or look into an alternative.  All this like what? is stalling bulls*t that gets us no where but on the same road to slower GDP growth and oil shock induced recessions.  No one knows what yet, but they know oil is not it.

Anyone with half a brain who reads and understands where oil is going knows this.  

Cheap oil is dead as long as the government continues to devalue the dollar, 73.38 in the DXY. Notice the correlation between dollar strength and oil price.

http://finviz.com/futures_charts.ashx?t=DX&p=w1

[kcballer]

Cheap oil is dead as long as the government continues to devalue the dollar, 73.38 in the DXY. Notice the correlation between dollar strength and oil price.

http://finviz.com/futures_charts.ashx?t=DX&p=w1

The devalued dollar doesn't help one bit i agree.  But that is only one part of the oil equation.  Supply has been dwindling for years, yet demand has increased.  The only oil fields being discovered and/or invested in cost more and more to either get up and running - offshore or refine - oil sands.  Even a strong dollar can not stop the price from increasing over the next decade.  It will provide temporary relief but it will not depress prices long term.  In 5 years the US will be in the same boat - staring down triple digit prices and stalled GDP growth as we yet again, go through this cycle. 

Oil companies know this.  They know that oil will not drop below $60-$70 for long, if at all, that is why you are seeing renewed interest in Utah oil sands, billions of dollars flowing into Canada's oil sands etc.  Both of which would be economically unstable with prices below $60 a barrel. 

Also of note is the danger of a liberal or socialist government in Canada.  Polls are showing the left wing gaining on the Conservatives.  Left wing platform includes putting a price on carbon emissions - huge cost to oil production up there, and stopping tax breaks worth billions.  If the two left wing parties for a government Canadian oil production may be stalled until oil reaches high enough to make it economically feasible.  Something not good for the US who rely on Canadian oil more and more.

[Bindare_Dundat]

The devalued dollar doesn't help one bit i agree.  But that is only one part of the oil equation.  Supply has been dwindling for years, yet demand has increased.  The only oil fields being discovered and/or invested in cost more and more to either get up and running - offshore or refine - oil sands.  Even a strong dollar can not stop the price from increasing over the next decade.  It will provide temporary relief but it will not depress prices long term.  In 5 years the US will be in the same boat - staring down triple digit prices and stalled GDP growth as we yet again, go through this cycle.  

Oil companies know this.  They know that oil will not drop below $60-$70 for long, if at all, that is why you are seeing renewed interest in Utah oil sands, billions of dollars flowing into Canada's oil sands etc.  Both of which would be economically unstable with prices below $60 a barrel.  

Also of note is the danger of a liberal or socialist government in Canada.  Polls are showing the left wing gaining on the Conservatives.  Left wing platform includes putting a price on carbon emissions - huge cost to oil production up there, and stopping tax breaks worth billions.  If the two left wing parties for a government Canadian oil production may be stalled until oil reaches high enough to make it economically feasible.  Something not good for the US who rely on Canadian oil more and more.

I think it has more to do with the issue of refining.

 I agree with the second half of your statement. Canada is going to face it's own hardship soon. The healthcare is busted, the housing bubble is huge, the people pay an ASTRONIMCAL amount of taxes and they want a breather, unfortuatly they are going by it the wrong way by voting for a party that has a proven record of making exisitng problems worse than they were to begin with. Why wouldnt they though? They are being promised more stuff and punishment of the "bad guys".


Canada's healthcare quality comes dead-last in global survey
Healthcare system cost about $190 billion last year
http://www.news1130.com/news/local/article/172215--canada-s-healthcare-quality-comes-dead-last-in-global-survey

Fears Canada property bubble will burst
http://www.ibtimes.com/articles/108924/20110204/fears-canada-property-bubble-will-burst.htm