Lakshman Achuthan Sees U.S. In Current Recession
Courtesy of Benzinga.
Economic Cycle Research Institute’s Lakshman Achuthan is confident that the economy is in the middle of a recession that most are blind to. He went over the details of this belief on Tuesday morning’s Squawk Box on CNBC.
“We’ve called; made a call for a recession in the middle of 2012 and we’re not budging from that call,” said Achuthan.
He said that as a student of the business cycle, he understands the “major revisions” that are due to come. According to Achuthan, “if you look at the half a year period from Q4 2012 through Q1 2013, annualized GDP, right now on the face of it, is at 0.6 percent.”
“And that’s only because of a freak boost in agricultural inventories that had to do with the earlier drought.”
Related: SunTrust: 10 Reasons Why Alibaba Should Acquire Snapchat
Achuthan highlighted that the benchmark revisions to GDP data that have come years after the most recent few recessions all show revisions of up to 2 to 4 full percentage points.
“Here we are in that half a year period at 0.6 [percent] on face value, and if you get rid of it with agricultural stuff, which doesn’t really count, it’s at [0.25] for a half a year. That is so easy to get revised away, and you’ll have your negative GDP staring you in the face,” Achuthan said.
Overall, Achuthan is concerned that the current consensus of pushing GDP to three percent for 2014 is extremely unlikely.
Jason Cunningham had no position with the mentioned entities while writing this article. Visit Jason on Twitter at @JasonCunningham and @Benzinga.
Posted-In: CNBC CNBC’s Squawk Box Economic Cycle Research Institute Lakshman AchuthanCNBC News Futures Rumors Commodities Options Forex Economics Markets Media Best of Benzinga
Source: http://www.philstockworld.com/2014/01/15/lakshman-achuthan-sees-us-in-current-recession-1/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).