2008 election

GDP Drop Blamed On Hurricane Sandy, Republicans

In the aftermath of Hurricane Sandy, some talking heads on the TV were saying how the U.S. economy would take a significant hit from all the destruction. I remember turning to my girlfriend and saying, “Well, there’s their out.” I went on to explain that if the economic numbers for the fourth quarter ended up being crummy, the White House would just go ahead and blame Sandy.

So while I was a little surprised to hear about the drop in GDP today (I thought enough “stimulus” was already coursing through the financial system), the same can’t be said about what the White House said this morning. Alan Krueger, Chairman of the Council of Economic Advisers, wrote on The White House Blog today:

According to the “advance” estimate released by the Bureau of Economic Analysis today, real GDP edged down 0.1 percent at an annual rate in the fourth quarter of 2012, amid signs that Hurricane Sandy disrupted economic activity and Federal defense spending declined precipitously, likely due to uncertainty stemming from the sequester. This was the first quarterly drop in real GDP in three-and-a-half years (see first chart below). Over the last fourteen quarters, the economy has expanded by 7.5 percent overall, and the private components of GDP have grown by 10.9 percent. During the four quarters of 2012, real GDP grew by 1.5 percent, the third consecutive year of economic expansion.

(Editor’s note: Italics added for emphasis)

Don’t get me started on that “economic expansion” bit, as it’s been oh-so-terrific for many Americans.

Hurricane Sandy’s economic impact and a decline in government spending last quarter is repeatedly mentioned in the blog post, leading some to believe that the Obama administration is blaming the economic contraction last quarter a good deal on that late October storm and the Republican Party. Reuters’ Mark Felsenthal wrote on Yahoo! News this afternoon:

The White House on Wednesday blamed the surprising contraction of the economy at the end of last year at least partly on Republican “political brinkmanship” for threatening to let defense cuts take effect.

White House spokesman Jay Carney said similar threats over a looming March 1 deadline when defense and other cuts take effect absent a broader budget deal could similarly hurt the U.S. economy and taxpayers.

“This is political brinkmanship with one primary victim, and that is American taxpayers and the American middle class,” Carney said at a briefing.

“Our economy is facing a major headwind … and that’s Republicans in Congress.”

(Editor’s note: Italics added for emphasis)

Since the campaign for the 2008 U.S. Presidential election, Barack Obama and the Democratic Party have consistently blamed George W. Bush and the Republican Party for the nation’s ongoing economic woes (I submit both major political parties are truly at fault and the damage began decades earlier). Believing that this strategy worked to retain the Oval Office in 2012, and based on Carney’s words today, be prepared to hear even more blamethrowing of this type going forward in President Obama’s second term.

In the meantime, the financial house of cards keeps growing more unstable with trillions of dollars of debt being continually heaped upon it.

Hurricane Sandy. The GOP. How about the “stimulus” being injected into the cancer (debt)-ridden patient is perhaps becoming less effective over time? Instead of a strong, sustainable economic recovery, we’re seeing a weak one that’s requiring constant assistance.

What QE are we on again?

Furthermore, Washington and the Fed are “running out of bullets.” It’s somewhat amazing they’ve managed to “kick the can down the road” this far.

Looking back on today’s GDP announcement and related events, it’s apparent the blamethrowers are alive and well in the nation’s capital.

And the proverbial brick wall- or our “financial reckoning day,” as some like to call it- keeps getting closer.

Be advised.

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)


Krueger, Alan. “Advance Estimate of GDP for the Fourth Quarter of 2012.” The White House Blog. 30 Jan. 2013. (http://www.whitehouse.gov/blog/2013/01/30/advance-estimate-gdp-fourth-quarter-2012). 30 Jan. 2013.

Felsenthal, Mark. “White House blames Republican ‘brinkmanship’ for GDP contraction.” Reuters. 30 Jan. 2013. (http://news.yahoo.com/white-house-accuses-republicans-brinkmanship-spending-cuts-181022857–business.html). 30 Jan. 2013.

Tags: , , , , , , , , , , ,

Survival And Prosperity
Christopher E. Hill, Editor
Est. 2010, Chicagoland, USA

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

Please Rate this Blog HERE

Limited Time Offers

Via Banner Ads Below (navigate to vendor home page if necessary); Updated 10/9/15:
>Airsoft Megastore Fall Sale Up To 40% Off; Multicam Sale Up To 30% Off; Free Shipping On All Orders (no code required)
>BGASC Big Sale On Silver Bars & Rounds!
>BUDK 25% Off Sale ($39 min. order; code needed)
>BulletSafe Bulletproof Baseball Cap $119 Pre-Order Price; Ballistic Plate Only $169
>CHIEF Blackhawk! Duty Gear, Apparel Bags, & Footwear 20% Off Thru 11/2; 25% Off Tru-Spec 24-7 Series Pants Thru 10/31; Free 3-Pack Coolmax Cushion Socks w/ All Footwear Thru 10/31; Waterproof Outwear, Safety Boots, Vests On Sale Thru 10/27
>Food Insurance Warehouse Sale (new items recently added)
>Nitro-Pak Mountain House Freeze-Dried Food Sale
>Tractor Supply Co. Save Up To $150 On Select Safes; Save Up To $100 On Select Heating; Save Up To 20% On Select Apparel & Footwear; Free UPS Ship To Store
NEW! Advertising Disclosure HERE
Buy Gold And Silver Coins BGASC Review Coming Soon
Free UPS ship to store on all Tractor Supply Company orders! Shop now! Tractor Supply Co. Review Coming Soon
MyPatriotSupply.com Reviewed HERE
Food Insurance Reviewed HERE
Nitro-Pak--The Emergency Preparedness Leader Nitro-Pak Reviewed HERE
BullionVault BullionVault.com Reviewed HERE
CHIEF Supply Reviewed HERE
bullet proof vests BulletSafe Reviewed HERE
BUDK Reviewed HERE
Pyramyd Air is your one-stop shop for everything airgun related. PyramydAir.com Reviewed HERE
Airsoft Megastore Reviewed HERE
Survival Titles Save 20% Paladin Press Reviewed HERE



Prepper Website
  • Recap: How Greece’s Bank Safe Deposit Boxes Fared During Latest Debt Crisis Flare Up

    Regrettably, I took my summer break from Offshore Safe Deposit Boxes right when the Greece sovereign debt crisis was flaring up (again) and capital controls were imposed, including on Greek bank safe deposit boxes. Last time I wrote about the situation, access to these boxes was still prohibited. I’ve been curious as to how it […] ...
  • Related Reading: Storing Precious Metals In Offshore, Non-Bank Facilities

    I was doing some reading Monday when I came across an article entitled “Your Gold Is Only as Good as Where You Store It” on Doug Casey’s International Man website. Jeff Thomas talked about how those looking to safeguard their wealth against insolvent governments have moved their cash into potentially harder-to-confiscate real estate and precious […] ...
  • Who Needs An Offshore Safe Deposit Box?

    It is my belief that offshore safe deposit boxes will be increasingly demonized in the coming years. If registering interest in one of these overseas asset protection tools to another party, be prepared to hear something along the lines of: “Why do you want an offshore safe deposit box? Are you doing something illegal?” While […] ...
  • War Declared On Gold As Part Of Capital Controls?

    I’ve read/heard a lot about the following lately: Wealth confiscation. The War on Cash. Capital controls. But after reading two articles by Doug Casey and Ted Bauman the other day, I’m wondering if a War on Gold related to capital controls has begun as well. From Doug Casey on his International Man website recently, concerning […] ...
  • Bank And Private Vaults Should Focus On Security Issues Post-Hatton Garden Heist, Pre-Financial Crises

    I’m still playing catch up on my offshore-related projects after that late summer break. So I just recently learned the fate of Hatton Garden Safe Deposit Ltd, the London private vault that was burglarized over Easter weekend to the tune of £10 million. Jamie Grierson reported on The Guardian (UK) website back on September 1: […] ...