Axios: Economy Shrinks For First Time In Nearly Two Years

The U.S. economy plunging into a recession was always going to be next shoe to drop.

Axios:

“Gross domestic product fell in the first quarter, as businesses slowed their inventory buildups and exports declined. It is the first negative growth number for the U.S. economy since the spring of 2020 at the onset of the pandemic.

Driving the news: The economy contracted at a 1.4% annual rate in the first three months of the year, the Commerce Department said Thursday. That compares with 6.9% growth in the fourth quarter of 2021. …

Trade subtracted 3.2 percentage points from overall GDP growth, as exports fell sharply and imports soared. This reflects a U.S. economy with significantly stronger domestic demand than the rest of the world. …”

Is anyone surprised?

I had a hard time believing that this war in Ukraine would be allowed to explode before the midterms given the predictable effect that it would have on supply chain issues, energy prices and inflation. I assumed that Antony Blinken would find some way to kick the can down the road.

BBC:

“Figures this week showed the US trade deficit in goods reached a record high last month, as coronavirus cases triggered shutdowns in China and the war in Ukraine upended key industries, including agriculture and oil.

Analysts said the unexpectedly large surge in imports, which count against US output in calculations of GDP, was probably due to businesses accelerating purchases.

Meanwhile exports fell, hurt in part by lower demand abroad. …”

Usually, we are the ones who are complaining about globalization and the negative consequences of international trade, but in this case we largely opposed the effort by the establishment to wage total economic war against Russia. We warned that it would have all sorts of negative unforeseen downstream consequences on the economy like the spikes in fertilizer, metals and oil prices.

Note: The only reason gas prices have gone down a little is because of the lockdowns in China.

About Hunter Wallace 12324 Articles
Founder and Editor-in-Chief of Occidental Dissent

5 Comments

  1. “economy contracted at a 1.4% annual rate ”

    THAT IS A LIE !

    The economy shrunk by a much larger amount.
    GDP is adjusted by the GDP deflator to compensate for The exaggerating effects of inflation in The raw numbers used to produce the GDP.
    The GDP deflator is a false number, just as the CPI and PPI are cooked figures.

    “globalization and the negative impact of international trade”
    Globalization was pushed on the gullible goy so banks like Goldman Sachs could loot America in foreign exchange trading and financing the removal of our factories along with profiteering on foreign low wages. In addition, it veiled the underlying inflation by reducing many prices, at the expense of jobs and a lower living standard.

    The Russian Ruble is now higher than it was before sanctions.
    Biden’s jew crew may be unleashing economic forces that can’t be reversed, commodity backed currencies.

  2. Generally, government spending is counted as part of GDP — huge federal deficits is one reason GDP figures have remained elevated — some de-dollarization is now in progress, and if it continues this will affect the government’s ability to spend at will, thus GDP may decline further.

    OT (but related, especially to The American Crisis)

    About the murdered 11 y/o girl in Wisconsin:

    Lily Peters and Carson Peters Berger: two children of 2 families of dysfunction

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