I predicted in an earlier post that we would see a -.5 to +.5% GDP growth in Q3 of this year. I was wrong as the first report shows a 3% jump. Granted, it will be revised over the next 30 days or so and probably down 50 Bpnts or so but all in all I was stoked with the positive number - Then I read this article from Zero Hedge.
In short
Zero Hedge reported that the main reason for the positive Q3 number was a $30B spike in Defense/Military spending due to ISIS.
"...So just which aspect of government taxpayer fund recirculation was responsible for this sudden boost in US "growth" (leaving aside the philosophical debate whether government capital allocations ever lead to growth)?
The answer is shown in the chart below showing the quarterly change in US National Defense spending: at by $30 billion, it was the most since 2008!
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/defense%20spending_0.jpg
In short: thank you ISIS and renewed war on terror..."
Interesting.
How much longer can the .gov and/or the Fed keep this charade up?
