GDP Release: And Duncan Black Is Shrill!
Eschaton: [A]t home GDP growth at a sad 2.2%. It's a complete mystery why this is happening.
Real federal government consumption expenditures and gross investment decreased 5.6 percent in the first quarter, compared with a decrease of 6.9 percent in the fourth. National defense decreased 8.1 percent, compared with a decrease of 12.1 percent. Nondefense decreased 0.6 percent, in contrast to an increase of 4.5 percent. Real state and local government consumption expenditures and gross investment decreased 1.2 percent, compared with a decrease of 2.2 percent.
Like Krgthulu I'm not especially optimistic that the powers that be will own up to being wrong or change their policies. They've convinced themselves that the only thing that matters is "low government borrowing costs" because this means that the people who have all the money have "confidence" in them. Of course low government borrowing costs don't just reflect market confidence by the bond vigilantes, they reflect the fact that their economies are crap and there aren't any productive investments anywhere. But, hey, as long as interest rates are low, nothing else matters.
I might actually prefer evil. This is mostly just stupid.