http://www.fxstreet.com/news/forex-news/article.aspx?storyid=58987632-3f8d-458f-912f-069105e9bf62
FXstreet.com (Barcelona) - While the attention on Wednesday is shifted
towards the FOMC meeting at 18 GMT, the U.S. GDP numbers published hours
earlier at the NY open will also be gathering plenty of headlines, with
especial intrigue this time, as the U.S. government recently decided a
new way of calculating it, which only helps to increase its divorce with
reality.
Could the U.S. tricks get more conspicuous?
Due
to the new tricks the U.S. government has implemented to its old
formula of calculating GDP, before being a sum of private consumption +
gross investment + government spending + (exports − imports), to now
throw into the mix research and development spending, art, music, film
royalties, books, theatre, the US economy is expected to 'officially'
become 3% larger.
Albert Sung, author of the Katchum
Macro-Economic Blog, shared a nicely well-expressed take on the latest
sleight by the U.S. government, noting "Research and development
(R&D) spending, which shouldn't even be accounted for as investment,
adds around 2% to the U.S. GDP number, while art, music, film
royalties, books and theatre add another 0.5% to U.S. GDP. Another
adjustment has been made to pension accounting, now looking at the
"promise" to pay out pensions."
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