[bobman0330]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
To answer you, I'll define recession a negative REAL economic growth (where GDP growth is oupaced by consumption weighted inflation). Based on that definition, we are in a recession. Everyone on Wall St knows the CPI isn't the most robust measure of inflation but even it is exceeding nominial GDP growth.

[/ QUOTE ]

SALAZAAAAAAAAAAAAAAAAAAAAAAAAAAARRRRRRRR,

this is the single most idiot thing you've said.

real GDP growth= Nominal GDP growth - change in CPI

in the first quarter, this was something like .8%. in the 2nd quarter it was about 3.8%.

we are not in a recession by any measure you want that gives a realistic assessment of inflation.

now we MAY be in a recession in the short term for a number of reasons but we definitely aren't in one now.

Barron

[/ QUOTE ]

If you take a loan to start a business and are paying 7% on the 100k you borrowed, you need to make more than 7%/year to be in the clear.

Yet you IGNORED THE TRADE deficit.

You're basically saying, hey this business is profitable they have cash on the balance sheet. If the cost of investment (inflation plus interest payments on debt) is less than the return on investment (GDP growth) then we are LOSING.

US Gov't is borrowing at 5% interest rate. US is growing at 4% ( if you accept the chain weighted real gdp # from 2000).
Our borrowing is funding growth.
But our financing is unprofitable because we lose 5%-4% = 1% a year in living standard.

[/ QUOTE ]

Your rant about how people don't understand economics is pretty funny in light of all this nonsense.