Peter Schiff: Obama's Phony GDP Growth

Recession:

A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters. A recession is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. A recession is generally considered less severe than a depression, and if a recession continues long enough it is often then classified as a depression. There is no one obvious cause of a recession, although overall blame generally falls on the federal leadership, often either the President himself, the head of the Federal Reserve, or the entire administration.

So it is generally agreed that at least two consecutive quarters of a drop in GDP can be described as a recession but Obama and his minions disingenuously claim, based on a phony ONE QUARTER bump in GDP due almost exclusively to government one time spending on automobile clunkers and the fraud ridden first time homeowner tax break program scheduled to expire at the end of this month, that the economy has “turned around” and the country is now headed in the right direction saved from the brink by the quick actions of this administration. Ummm, no.

We can anticipate an announcement soon that unemployment will have officially reached 10% (the real unemployment rate hovers around 17%) and will stay there for the foreseeable future.

unemployment rate graph

Since 70% of our economy depends on consumer spending, and with so many people out of a job and those who are employed sweating bullets wondering if or when a pink slip will wind up on their desk, the prospects of this economic malaise we are mired in making a turn and start heading in the right direction any time soon are slim and none. The news that CIT, one of the largest lenders to small and medium sized companies in the country, recently declared Chapter 11 bankruptcy certainly isn’t going to help matters.

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Economic expert Peter Schiff on the phony GDP growth nonsense being floated by the Obama administration:

This entry was posted in Economy.

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