Thursday, August 28, 2014

US 2014 GDP only 1.5 per CBO, blames cold spring weather-ABC News. Apparently unless US gets some global warming we'll go broke

8/27/14, "US Economy Growing Slower than White House Predicted," ABC News Radio,

"The U.S. economy has grown just 1.5 percent in the 2014 fiscal year -- far slower than White House projections -- while more than $500 billion of deficit spending was added to the national debt, according to projections released Wednesday by the non-partisan Congressional Budget Office.

Just last month the Obama administration forecast 2.6 percent GDP growth in 2014....

In its report released Wednesday,  the CBO said growth was stymied partly by “bad weather” during the cold months of spring.
The report said that $506 billion was added to the national debt this year, but that was almost $170 billion less than last year. The CBO also estimated the annual deficit will shrink to $459 billion in 2015 if taxes and spending law remains the same. But the deficit would rapidly grow in years to follow, hitting a ceiling of $960 billion by 2024 unless Congress enacts changes to alter the trajectory.

In total, CBO says current law would create $7.2 trillion in unfunded liabilities over the next 10 years....

The CBO had some good economic news, predicting that the GDP will rebound and expand by 3.4 percent over the next two years due to increased demand for goods and services, businesses investments in new structures and equipment, improved consumer spending and improving on the housing front....
CBO’s latest data also predicts the national unemployment rate will average 5.6 percent from 2018 through 2024."
via Lucianne


First a cold winter was to blame, now it's a cold spring. 3 cold winter citations:

3/5/14, "US economy hampered by severe winter weather, Federal Reserve says," UK Guardian, Dominic Rushe

"Federal Reserve’s ‘beige book’ report notes that consumer spending lessened because of cold, snow, and storms in winter"."...

4/30/14, "U.S. economy slows to stall-speed,", Annalyn Kurtz

"Economists think the slowdown is merely a temporary phenomenon due to harsh winter weather. If that theory holds true, the economy should bounce back in the spring. 

"Take this report with a grain of salt," said Brett Ryan, U.S. economist for Deutsche Bank. "It's certainly not a good report, but there's plenty of evidence of a weather impact.""...


Cold US winter partly to blame for entire globe having slow 2014 says World Bank:

 6/11/14, "World Bank: Global Economic Growth to Slow in 2014 After Cold US Winter and Political and Financial Unrest Worldwide," International Business Times, Maria Gallucci

"Global economic growth is expected to dip this year, following the fiercely cold winter that plagued the United States and turbulence in Ukraine and the world’s financial markets....The U.S. forecast was cut to 2.1 percent from 2.8 percent."...


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