One who intends to leave others better off for his having existed.

11/7/13

"3Q GDP DECREASED $58.4 Billion" instead of plus $196.6 billion with Federal Reserve

"Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.8 percent in the third quarter of 2013"

Bureau of Economic Analysis
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"The Fed is "creating" $85 billion a month in "QE", injecting it into the economy.

These funds... "count" in GDP

So the actual amount of economic activity for which trade occurs must have the QE amount subtracted back out.

The BEA's GDP tables tell us that the gross change in GDP from 2Q -> 3Q was $196.6 billion.

But the Fed's QE program injected $255 billion, so in fact the economy shrank during the 3rd quarter.

http://market-ticker.org/akcs-www?post=225788
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$196.6 billion GDP change - $255 billion QE = -$58.4 Billion

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