US Q2 GDP revised up to 3.3 pct gain due to higher exports, spending - Tech Support Forums

The Real Bingo · August 28th, 2008, 01:40 PM

US Q2 GDP revised up to 3.3 pct gain due to higher exports, spending - Forbes.com

Quote:

The economy grew at a 3.3% annualized rate in the second quarter, a sharp upward revision from the 1.9% growth reported in Commerce's first estimate a month ago and higher than the 0.9% gain in the first quarter. The 3.3% GDP increase is the fastest pace since the third quarter of 2007, when GDP grew at a 4.8% annualized rate.

outlaw2001it · August 28th, 2008, 07:02 PM

You know what's kind of screwy about it...we got great numbers, however the Greenback ain't doing crap against other currencies. Fannie Mae, Freddie Mac, and the rest of the financial fiasco is killing us. That number could have tripled to 10.0%, and it wouldn't have mattered. Until we get this credit crunch under control...we're screwed.

By the way Happy Birthday!!!!!!

The Real Bingo · August 29th, 2008, 01:09 AM

Quote:

Originally Posted by outlaw2001it

You know what's kind of screwy about it...we got great numbers, however the Greenback ain't doing crap against other currencies.

You sure about that?

Euro to U.S. Dollar Exchange Rate - Yahoo! Finance

U.S. Dollar to Japanese Yen Exchange Rate - Yahoo! Finance

The weak dollar has actually helped because it spurred growth in exports.

Quote:

Fannie Mae, Freddie Mac, and the rest of the financial fiasco is killing us. That number could have tripled to 10.0%, and it wouldn't have mattered. Until we get this credit crunch under control...we're screwed.

It's finding a bottom.

Quote:

By the way Happy Birthday!!!!!!

Thanks.

outlaw2001it · August 29th, 2008, 04:57 AM

Yep very sure about it, I follow the currency exchange about 20 times a day. Exports are doing well because of the weak Dollar, but analyists say that may not happen again next quarter. It's not finding a bottom anytime soon. Again, analyists are saying by the end of 2009/2010 on this credit crunch. The problem with that is that's when the banks/market will recover...families won't recover from this until at least sometime afterwards.

The Real Bingo · August 29th, 2008, 11:57 AM

If you believe what analysts say, Enron is still a stock to own. Maybe you're right about the recovery, but there's no denying the dollar has gained ground on the Euro in the past few months.

outlaw2001it · August 29th, 2008, 01:00 PM

Quote:

Originally Posted by The Real Bingo

If you believe what analysts say, Enron is still a stock to own. Maybe you're right about the recovery, but there's no denying the dollar has gained ground on the Euro in the past few months.

I don't believe all analysts, just certain ones that I believe hold credibility. As for the Dollar against the Euro...it's still on shaky ground. Yes it gained ten cents against the Euro in the past month or two, and it right now it is fluctuating in the $1.47 = €1 ballpark. Inflation in the Euro-zone dropped .2% in the past month, but however with the strong Euro prices are still quite high, and factories aren't selling goods as well. Jim Rogers some analysts that was on CNBC stated that Bernanke, and company should be fired, and that Trichet (the Head of the European Central Bank) should take over. I don't agree with this guy at all on anything that he's ever said, and I believe Bernanke is doing a pretty good job with interest rates etc. He walked into a mess that was started by Volcker, and Greenspan, and the greed carried over to banks, and the wealthy. It's going to be mid 2009 until anyone can determine anything with the U.S. financial system, and around the beginning of 2009/end of 2008 about the actual financial problems here in Europe (minus the U.K. - they have their own problems).

MTAtech · August 29th, 2008, 07:23 PM

Don't read too much into higher GDP numbers. GDP is measured in dollars and higher gas prices, ironically raise GDP because more dollars change hands. Inflation is up to 10% now.

outlaw2001it · August 30th, 2008, 06:02 AM

Not to argue with you, but the GDP has nothing to do with the currency exchange.
The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time, and it is given a money value.

The most common approach to measuring and understanding GDP is the expenditure method:
GDP = consumption + gross investment + government spending + (exports − imports), or,
GDP = C + I + G + (X-M).

Gross domestic product - Wikipedia, the free encyclopedia

Inflation is at 10%??? What have you been smoking/drinking???

Inflation is 5.52% as of 28 August 2008.

U.S. Inflation Rate Forecast

MTAtech · August 30th, 2008, 08:05 AM

Quote:

Originally Posted by outlaw2001it

Not to argue with you, but the GDP has nothing to do with the currency exchange.

I wasn't writing about currency exchange. If a country produced a million gallons of gas, when gas was one dollar a gallon, the effect on GDP would be one million dollars. However, if gas jumped to $2.00 a gallon, with no additional output, the effect on GDP would now be $2 million. Higher prices make GDP rise without any additional output.

The nation has seen oil prices rise and that is now filtering through the economy causing higher prices of goods. In the short-term, GDP will rise as consumers cannot adjust to the higher prices.

As an aside, GDP is a flawed method to measure standard of living. If cars got twice the mileage and lasted twice as long but cost the same, GDP would fall but we would have a better life.

outlaw2001it · August 30th, 2008, 09:29 AM

Of course the price of gas is going to affect the GDP. If gas goes up so does the price of retail goods/food...etc. Right now with price of gas the way it is...it's affecting our import/export prices, along with retail/food prices...etc. If people aren't buying anything because of the high prices, our GDP would be lower. Don't just worry about the gas price for cars...worry about the gas price in general.
As for the GDP method of measuring the standard of living, it's a general method of measurement. However since most countries base their standard of living on it, it's widely used...flawed or not.