Via Denninger, Gross Domestic Product declined by 0.1% in the 4th quarter.
This really isn't too surprising, except that it has taken so long to show up. You can prime the pump all you want, if the well has run dry, nothing is coming out.
Metals and bonds seem more in touch with reality than the equity markets -- so far. The lack of a plunge in stocks makes one wonder if the markets are manipulated or just hysterically desperate.
Defense spending decreased in the fourth quarter, but, overall government outlays increased over third quarter expenditures -- over $900 billion between 10/1 and 12/31 versus a little over $800 billion in the previous three months. Do not be fooled by the BS the media will be spewing which will focus on Hurricane Sandy or the DOD. The Treasury chart is here. It's pretty scary when you look at the massive deficits every month except for April and September -- April being income tax month and September being the end of many corporate fiscal years.
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