Rebel Capitalist News Holy Sh*t!! New GDP Numbers Blowout Expectations...But There's A Problem
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Aug 28, 2025 The podcast dives into the recent GDP revisions, revealing a surprising 3.3% increase and unpacking the complexities of trade deficits and consumer spending. The hosts analyze how these figures may influence market reactions. They also explore gold as an investment, discussing innovative storage solutions and the potential for earning yields in gold, presenting intriguing alternative ways to navigate the investment landscape.
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Headline GDP Masks Underlying Detail
- The GDP revision to 3.3% looks strong on the headline but hides composition issues.
- George Gammon warns the devil is in the details behind the headline revision.
How Trade Flows Skew GDP
- Trade deficits subtract from GDP because GDP measures domestic production net of imports.
- Gammon explains imports were unusually high in Q1, which depressed that quarter's GDP.
Trade Deficit Reduction Drove Q2 Swing
- The big Q2 GDP swing mainly reflects a sharp reduction in the trade deficit.
- Gammon shows that lower imports added several percentage points to reported GDP growth.