Feeble GDP

By Econ70 | 11/01/2012

The economy grew at a rate of just 2% in Q3. The drought subtracted 0.4% from growth, slumping exports clipped 0.2%, and falling business investment took 0.1% off GDP. By contrast, increased consumer spending added 1.4% to growth and increased defense spending boosted GDP by 0.6%. Growth in Q4 will be weaker due to the…

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QE3 Despite Drought

By Econ70 | 07/30/2012

Despite inevitably higher food prices starting this fall, stemming from a severe drought, the Fed will ignore this when they launch a third round of Quantitative Easing in September. It’s because the drought is a short-term event that will probably reverse itself in ‘13. Moreover, groceries are barely 7% of the average family budget, and…

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