"jps" wrote in message
...
"NOYB" wrote in message
link.net...
Economy Grows at Fastest Pace Since 1984
By JEANNINE AVERSA, Associated Press Writer

WASHINGTON - The economy grew at a blistering 7.2 percent annual rate in
the
third quarter in the strongest pace in nearly two decades. Consumers
spent
with abandon and businesses ramped up investment, compelling new
evidence
of
an economic resurgence.

While going into further debt. Washington is setting the tone, we're in
love with deficit spending.

There's nothing wrong with deficit spending when you have the ability to
borrow ad infinitum...especially when GDP increases as sharply as it did.
The net tax receipts grow (despite a rate cut), as GDP grows...but there is
at least a 1-1 1/2 year lag. The ol' deficit will shrink in the very near
future again. Nevertheless, increases in the deficit don't matter as long
as there are proportional increases in GDP.




The increase in gross domestic product, the broadest measure of the
economy's performance, in the July-September quarter was more than
double
the 3.3 percent rate registered in the second quarter, the Commerce
Department reported Thursday.

Because the cupboards were nearly empty from reduced production (of
everything but job cuts) for months.

Spin away Dem-boy...but there's nothing but good news in a 7.2% jump in the
GDP.

"NOYB" wrote in message
hlink.net...

Spin away Dem-boy...but there's nothing but good news in a 7.2% jump in
the
GDP.

It's all relative Neo-boy. When a company goes in the ****ter and then
"doubles profits" in the subsequent quarters, it can still be doing 1/10th
the business it did previously. Statistical analysis is fun for you. The
truth is that America is going into debt, both gov't and its citizens.

I don't care how you paint it, that's not good.

It's all relative Neo-boy.

You're right, it is all relative.
Relatively speaking our debt is lower now than it was throughout the 90's.

"Joe" wrote in message
news

It's all relative Neo-boy.

You're right, it is all relative.
Relatively speaking our debt is lower now than it was throughout the 90's.

Let's see what you're basing that on...

It's all relative Neo-boy.

You're right, it is all relative.
Relatively speaking our debt is lower now than it was throughout the
90's.

Let's see what you're basing that on...


Percentage of debt to GDP.

Percentage of debt to GDP.

Bow-gus!

In billions of dollars:
1997 GDP: 8,318.4
2002 GDP: 10446.2

Compare that to the national debt for the same years. It's close, so use a
calculator.

While the difference is slight, the current debt is *higher than*, not *less
than* the debt to GDP ratio in 1997.

GDP is a deceptive figure anyway, as it includes the appreciation of primary
residence real estate as some sort of actual wealth or economic production.
Planning to sell your house and live in a tent any time soon?
Subtract the appreciation of residential real estate, and watch the comparsion
skew right off the chart. We are way the hell out of whack from where we were
in the 90's.

When interest rates go back up to service the debt, those house prices will
take a mighty tumble. People will spend as much for a house as the monthly
payments allow. When a lot more of that payment is going for interest, guess
what has to give?

"Gould 0738" wrote in message
...

GDP is a deceptive figure anyway, as it includes the appreciation of
primary
residence real estate as some sort of actual wealth or economic
production.

Too abstract. You'd better use bigger crayons to explain this to the Homers.

"Gould 0738" wrote in message
...
Percentage of debt to GDP.

Bow-gus!

Check out the graph on GDP to debt ratio.
http://www.ustreas.gov/press/release...2003charts.pdf


In billions of dollars:
1997 GDP: 8,318.4
2002 GDP: 10446.2

That's a nice 26.28% increase isn't it?
The national debt rose by 14.29% in the same period.

When interest rates go back up to service the debt,

Sorry but there is no correlation between the rise, or fall, of the national
debt and interest rates.

http://www.taxfoundation.org/images/graph2.jpg

You're right, it is all relative.
Relatively speaking our debt is lower now than it was throughout the 90's.

Relatively speaking?

Maybe if you're a relative of a right wing radio spin doctor.

Our current debt is about 1 1/2 times what it averaged in the 90's. Is somebody
trying to state that the size of our (recessed) economy is more than 150% of
what it was in the 90's and therefore the debt is
still in proportion? That's easy to say, but I think it would be impossible to
come up with any evidence to support such a s-t-r-e-t-c-h of logic.

You also have to examine the trend. The national debt increased more in single
fiscal year ended 9-30-2003 (about $500 billion) than it did in any single year
in the 90's, and indeed more than it did in almost any 2 year period you can
find during the 90's.


Prior Fiscal
Years

09/30/2003 $6,783,231,062,743.62
09/30/2002 $6,228,235,965,597.16
09/28/2001 $5,807,463,412,200.06
09/29/2000 $5,674,178,209,886.86
09/30/1999 $5,656,270,901,615.43
09/30/1998 $5,526,193,008,897.62
09/30/1997 $5,413,146,011,397.34
09/30/1996 $5,224,810,939,135.73
09/29/1995 $4,973,982,900,709.39
09/30/1994 $4,692,749,910,013.32
09/30/1993 $4,411,488,883,139.38
09/30/1992 $4,064,620,655,521.66
09/30/1991 $3,665,303,351,697.03
09/28/1990 $3,233,313,451,777.25
09/29/1989 $2,857,430,960,187.32
09/30/1988 $2,602,337,712,041.16
09/30/1987 $2,350,276,890,953.00

SOURCE: BUREAU OF THE PUBLIC DEBT