Despite monetary Stimulypto from The Federal Reserve (still growing!), US real GDP has fallen to almost zero.
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2021 is 0.2 percent on October 27, down from 0.5 percent on October 19. After the October 19 GDPNow update and subsequent releases from the US Census Bureau, the National Association of Realtors, and the US Department of the Treasury’s Bureau of the Fiscal Service, a decrease in the nowcast of third-quarter real government spending growth from 2.1 percent to 0.8 percent was slightly offset by an increase in the nowcast of third-quarter real gross private domestic investment growth from 9.0 percent to 9.3 percent. Also, the nowcast of the contribution of the change in real net exports to third-quarter real GDP growth decreased from -1.56 percentage points to -1.81 percentage points.
This comes at a time when Virginia is being invaded by the North … again. Former Governor Terry McAuliffe (of bankrupt GreenTech fame) is running for governor … again and President Biden, Vice President Harris, former President Obama have all invaded Virginia to campaign for McAullife over Republican opponent Glenn Youngkin.
The good news? With Biden and Harris campaigning in Virginia, they can probably do less damage for the rest of the nation.