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I love visiting France. But I do not like their tepid, sub-2% Real GDP growth.
But just in time for the elections, US GDP growth YoY rose to a very French-like 1.5%.
But I am certain that mainstream media will obsess about the QoQ growth rate of 2.9%.
If The Fed actually believes the 2.9% Q3 QoQ report and believes that it is sustainable, they have no choice but to raise rates in December and in 2017.
Personal spending? It actually fell from 4.3% in Q2 to 2.1% in Q3.
Why the rise in Q3 QoQ GDP? The rise was driven by a jump in inventories which contributed 0.6% to the bottom line. Net trade added another 0.8%, spiked by a surge in exports such as soybeans.
Here is a video of a cheerleader (“economist”) investigating the Q3 GDP report for “clues.”
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