Well it looks like the last quarter of 2012 saw the contraction we all expected. Does this mean the economic dice have finally fallen into place? Not likely, I imagine that the release of this news will spur ever more priming and pumping, however, while the contraction was small, just .1 percent annual rate, this is a marked decline given that the quarter before saw 3.1% annualized growth.
However, even if this contraction is just a minor blip, and it's hard to say given how much government distorts actual economic production today, the news is still not good. Economists predict that we need the economy to grow at least at the rate it did during the third quarter of 2012 if we want to lower unemployment. Economic growth in 2012 was officially 2.2 percent. My question though, is how much of that was self sustained private sector growth, versus growth spurred on by the government.