Back in June, when we were looking at the final Q1 GDP print, we discovered something very surprising: after the BEA had first reported that absent for Obamacare, Q1 GDP would have been negative in its first Q1 GDP report, subsequent GDP prints imploded as a result of what is now believed to be the polar vortex. But the real surprise was that the Obamacare boost was, in the final print, revised massively lower to actually reduce GDP!

This is how the unprecedented trimming of Obamacare's contribution to GDP looked like back then.

 

Of course, even back then we knew what this means: payback is coming, and all the BEA is looking for is the right quarter in which to insert the "GDP boost". This is what we said verbatim:

Don't worry thought: this is actually great news! Because the brilliant propaganda minds at the Dept of Commerce figured out something banks also realized with the stub "kitchen sink" quarter in November 2008. Namely, since Q1 is a total loss in GDP terms, let's just remove Obamacare spending as a contributor to Q1 GDP and just shove it in Q2.

 

Stated otherwise, some $40 billion in PCE that was supposed to boost Q1 GDP will now be added to Q2-Q4.

 

And now, we all await as the US department of truth says, with a straight face, that in Q2 the US GDP "grew" by over 5% (no really: you'll see).

Well, we were wrong: it wasn't Q2. It was Q3, albeit precisely in the Q2-Q4 interval we expected.

Fast forward to today when as every pundit is happy to report, the final estimate of Q3 GDP indeed rose by 5% (no really, just as we predicted), with a surge in personal consumption being the main driver of US growth in the June-September quarter. As noted before, between the second revision of the Q3 GDP number and its final print, Personal Consumption increased from 2.2% to 3.2% Q/Q,  and ended up contributing 2.21% of the final 4.96% GDP amount, up from 1.51%.

So what did Americans supposedly spend so much more on compared to the previous revision released one month ago? Was it cars? Furnishings? Housing and Utilities? Recreational Goods and RVs? Or maybe nondurable goods and financial services?

Actually no. The answer, just as we predicted precisely 6 months ago is... well, just see for yourselves.

In short, two-thirds of the "boost" to final Q3 personal consumption came from, drumroll, the same Obamacare which initially was supposed to boost Q1 GDP until the "polar vortex" crashed the number so badly, the BEA decided to pull it completely and leave this "growth dry powder" for another quarter. That quarter was Q3.

https://www.zerohedge.com/news/2014-12-23/here-reason-surge-q3-gdp

Remember back in April, when the first GDP estimate was released (a gargantuan by comparison 0.1% hence revised to a depression equivalent -2.9%), we wrote: "If It Wasn't For Obamacare, Q1 GDP Would Be Negative." Well, now that GDP is not only negative, but the worst it has been in five years, we are once again proven right. But not only because GDP was indeed negative, but because the real reason for today's epic collapse in GDP was, you guessed it, Obamacare.

Here is the chart we posted in April, showing the contribution of Obamacare, aka Healthcare Services spending. It was, in a word, an all time high.

 

Turns out this number was based on.... nothing.

Because as the next chart below shows, between the second and final revision of Q1 GDP something dramatic happened: instead of contributing $40 billion to real GDP in Q1, Obamacare magically ended up subtracting $6.4 billion from GDP. This, in turn, resulted in a collapse in Personal Consumption Expenditures as a percentage of GDP to just 0.7%, the lowest since 2009!

Don't worry thought: this is actually great news! Because the brilliant propaganda minds at the Dept of Commerce figured out something banks also realized with the stub "kitchen sink" quarter in November 2008. Namely, since Q1 is a total loss in GDP terms, let's just remove Obamacare spending as a contributor to Q1 GDP and just shove it in Q2.

Stated otherwise, some $40 billion in PCE that was supposed to boost Q1 GDP will now be added to Q2-Q4.

And now, we all await as the US department of truth says, with a straight face, that in Q2 the US GDP "grew" by over 5% (no really: you'll see).

https://www.zerohedge.com/news/2014-06-25/here-reason-total-collapse-q1-gdp

Here is a shocker: for all the damnation Obamacare, which according to poll after poll is loathed by a majority of the US population, has gotten if it wasn't for the (government-mandated) spending surge resulting from Obamacare, which resulted in the biggest jump in Healthcare Services spending in the past quarter in history and added 1.1% to GDP ...

... real Q1 GDP (in chained 2009 dollars), which rose only $4.3 billion sequentially to $15,947 billion, would have been a negative 1.0%!

 

It's curious how the weather impacted (or rather is used as an excuse to explain) everything but government-mandated healthcare spending in the first quarter.

And of course, for all those who correctly point out that mandatory spending on healthcare, also known as malinvestment, took away from spending on every other discretionary item possible, well... you are right.

https://www.zerohedge.com/news/2014-04-30/if-it-wasnt-obamacare-q1-gdp-would-be-negative

So it was what a surprise 

Poor Slinger

There has never been an administrative so “creative” with economic numbers.  Let alone the debt vs.deficit vs.GDP 3-shell propaganda game.  

 

 

 

The Ballchinian has read this but has yet to comment.

Weird.

Extra half a trillion in govt spending this year.

Edited July 28, 20186 yr by Nazipigdog

1 minute ago, Nazipigdog said:

Extra half a trillion in govt spending this year.

Who was going to spend less?

Just now, f7ben said:

Who was going to spend less?

21 minutes ago, Nazipigdog said:

That's right.....nobody....and they never will

6 hours ago, f7ben said:

That's right.....nobody....and they never will

That's excuses though.

Neal

33 minutes ago, NaturallyAspirated said:

That's excuses though.

Neal

Trump always said he was a fan of deficits. Whatever he convinced retarded conservatives of was pure bullshit

15 hours ago, f7ben said:

That's right.....nobody....and they never will

sad but true

8 hours ago, f7ben said:

Trump always said he was a fan of deficits. Whatever he convinced retarded conservatives of was pure bullshit

The only thing he had to convince voters was that he was better than hillary and he did.

18 hours ago, Snake said:

The Ballchinian has read this but has yet to comment.

Weird.

 

17 hours ago, f7ben said:

That's right.....nobody....and they never will

lets see how the budget talks go this October

1 hour ago, racer254 said:

The only thing he had to convince voters was that he was better than hillary and he did.

What is upsetting to the left the most is, not just that we decided he was better than Hillary (a rock was better than Hillary) but, it was a realization that Obama, the left’s agenda and liberals were and are absolutely despised.  They literally just got their feelings stomped on by a huge majority of this nation they thought they’d successfully squelched.  That’s all this whining is about, the most needy of Americans realizing they aren’t loved or thought of us “intellectually elite” and  MOST CERTAINLY aren’t considered to be doing things for “the greater good”. 

Hell hath no fury like a librul scorned.  Their biggest problem with this is, nobody fears librulz.

 

3 minutes ago, Zambroski said:

What is upsetting to the left the most is, not just that we decided he was better than Hillary (a rock was better than Hillary) but, it was a realization that Obama, the left’s agenda and liberals were and are absolutely despised.  They literally just got their feelings stomped on by a huge majority of this nation they thought they’d successfully squelched.  That’s all this whining is about, the most needy of Americans realizing they aren’t loved or thought of us “intellectually elite” and  MOST CERTAINLY aren’t considered to be doing things for “the greater good”. 

Hell hath no fury like a librul scorned.  Their biggest problem with this is, nobody fears librulz.

 

But Thrillerys won the popular vote  

1 minute ago, Momorider said:

But Thrillerys won the popular vote  

That’s what losers say after their plan (scheme) was soundly beaten.

”But we had more yards on the ground.”

What’s astounding to watch is all of them rushing the field and refusing to leave while blaming a whole different league for their loss.  It’s been 20 months and there they are still.....whining at the 50 yard line.

Pathetic.

2 minutes ago, Zambroski said:

That’s what losers say after their plan (scheme) was soundly beaten.

”But we had more yards on the ground.”

What’s astounding to watch is all of them rushing the field and refusing to leave while blaming a whole different league for their loss.  It’s been 20 months and there they are still.....whining at the 50 yard line.

Pathetic.

Well if you take out the 5 million illegals who voted  

42 minutes ago, Zambroski said:

What is upsetting to the left the most is, not just that we decided he was better than Hillary (a rock was better than Hillary) but, it was a realization that Obama, the left’s agenda and liberals were and are absolutely despised.  They literally just got their feelings stomped on by a huge majority of this nation they thought they’d successfully squelched.  That’s all this whining is about, the most needy of Americans realizing they aren’t loved or thought of us “intellectually elite” and  MOST CERTAINLY aren’t considered to be doing things for “the greater good”. 

Hell hath no fury like a librul scorned.  Their biggest problem with this is, nobody fears librulz.

 

You're going to get the "well we won the popular vote" response, and technically that is true.  But its clear that the urban areas were responsible for that.  And I don't trust the DNC as far as I can throw them, so would even assume they probably did some cheating voter fraudwise.  But most of all, given how much most of the media and hollyweird was in Hilary's pocket, if we had a real fair and balanced media, I think the popular vote would have looked alot more like the electoral vote.  Where we go from here who knows, but the left doesn't appear have made any changes to their playbook, the agenda is Trump's a nazi, Trumps this, Trumps that.  So that is why I think they'll be in for another rude awakening this November and in 2020.  Establishment R's better get their shit together as well, or they'll get their asses voted out too.

3 minutes ago, DriftBusta said:

You're going to get the "well we won the popular vote" response, and technically that is true.  But its clear that the urban areas were responsible for that.  And I don't trust the DNC as far as I can throw them, so would even assume they probably did some cheating voter fraudwise.  But most of all, given how much most of the media and hollyweird was in Hilary's pocket, if we had a real fair and balanced media, I think the popular vote would have looked alot more like the electoral vote.  Where we go from here who knows, but the left doesn't appear have made any changes to their playbook, the agenda is Trump's a nazi, Trumps this, Trumps that.  So that is why I think they'll be in for another rude awakening this November and in 2020.  Establishment R's better get their shit together as well, or they'll get their asses voted out too.

The left, and their media, are without any doubt in my mind (or anybody else's mind that has a brain) the most corrupt to probably ever reign.  Even now, watching this shit show of the DOJ and IC stonewall and flip their noses at congress and the American people is astounding.  But, all part of keeping this divide going.  The left has found the perfect of the most feeble of minds and has been able to extract the maximum amount of sheepness out of them.  Their only plan is to keep them in the fence right now and do all they can to obstruct advancement and success with Trump's agenda while hiding the truth of successes under bullshit propaganda.  CNN's whole front page when the GDP numbers came out had no mention of any of it for hours an hours..then fleeting, then.....reasons it was good.  "Thanks Obama".  Or, reasons it was a lie.  "Deficits!!".  Or, otherwise just BS deflection "Tax cuts aren't raising pay."  WUT?  Then the left saying, "BUt thA R's did it too.'  LOLOLOLOL!!!  No.  This is unprecedented ignorance and repugnance from a political party being propagated by a biased and untruthful media.  

I must say though, while i hate them for allowing it to get to this point, it's fun to watch them rip each other apart.  They don't know what to do.  Enter Bernie and his wide eyed half-wit. 

 

 

27 minutes ago, Zambroski said:

The left, and their media, are without any doubt in my mind (or anybody else's mind that has a brain) the most corrupt to probably ever reign.  Even now, watching this shit show of the DOJ and IC stonewall and flip their noses at congress and the American people is astounding.  But, all part of keeping this divide going.  The left has found the perfect of the most feeble of minds and has been able to extract the maximum amount of sheepness out of them.  Their only plan is to keep them in the fence right now and do all they can to obstruct advancement and success with Trump's agenda while hiding the truth of successes under bullshit propaganda.  CNN's whole front page when the GDP numbers came out had no mention of any of it for hours an hours..then fleeting, then.....reasons it was good.  "Thanks Obama".  Or, reasons it was a lie.  "Deficits!!".  Or, otherwise just BS deflection "Tax cuts aren't raising pay."  WUT?  Then the left saying, "BUt thA R's did it too.'  LOLOLOLOL!!!  No.  This is unprecedented ignorance and repugnance from a political party being propagated by a biased and untruthful media.  

I must say though, while i hate them for allowing it to get to this point, it's fun to watch them rip each other apart.  They don't know what to do.  Enter Bernie and his wide eyed half-wit. 

 

 

I can only hope that the public continues to awaken to the con job much of the media plays on them, and Trump continues to expose them all one by one.  Most of all, I hope we get some indictments and convictions.  Its the only way that shit is going to change.  Im patient, but my side of the aisle is not going to be happy until that happens.  Some of what we've seen with our own eyes in the past year has been mind blowing to me.  Arrogant, smug, you can't touch me attitudes.  That shit cannot go unchallenged.

1 hour ago, DriftBusta said:

 

lets see how the budget talks go this October

If any cuts are accompanied by increased military spending is an instant fail

15 minutes ago, DriftBusta said:

I can only hope that the public continues to awaken to the con job much of the media plays on them, and Trump continues to expose them all one by one.  Most of all, I hope we get some indictments and convictions.  Its the only way that shit is going to change.  Im patient, but my side of the aisle is not going to be happy until that happens.  Some of what we've seen with our own eyes in the past year has been mind blowing to me.  Arrogant, smug, you can't touch me attitudes.  That shit cannot go unchallenged.

You may be more optomistic than i am.  I'm just curious as to what end the left think they are going to continue to dump fuel on the fire and not have consequences.

Personally, I think it's time for a good dust up.  But..IMAFREAK!!!!!!!!!!!!!!!! 

6 minutes ago, Zambroski said:

You may be more optomistic than i am.  I'm just curious as to what end the left think they are going to continue to dump fuel on the fire and not have consequences.

Personally, I think it's time for a good dust up.  But..IMAFREAK!!!!!!!!!!!!!!!! 

on the bold....yes that too.  And I should have said, what I have seen with my own eyes "the past couple of years"