THE ECONOMIC NEWS

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(more real news)

Speak Out - Audit the Fed, Then End It!
Now that the love affair with Obama is starting to wear off, it is time to Speak Out!
Voters in California have just spoken out against Propositions 1A-1E (see California Voters Immediately Rewarded For Voting Down Propositions 1A Thru 1E) and now it's your turn.
It's time to take action on many issues, and the way to do that is to let Congress know how you feel.
The first order of business is Ron Paul's Campaign Audit the Fed, Then End It!Audit the Fed, Then End It!
I have been very pleased with the progress of my legislation, HR 1207, which calls for a complete audit of the Federal Reserve and removes many significant barriers towards transparency of our monetary system. This bill now has nearly 170 cosponsors, with support from both Republicans and Democrats. Senator Bernie Sanders has introduced a companion bill in the Senate S 604, which will hopefully begin to gain momentum as well. I am very encouraged to see so many of my colleagues in Congress stand with me for greater transparency in government. (read more at http://globaleconomicanalysis.blogspot.com/ )

GROSS DOMESTIC PRODUCT: FIRST QUARTER 2009 (ADVANCE)
Real gross domestic product -- the output of goods and services produced by labor and propertylocated in the United States -- decreased at an annual rate of 6.1 percent in the first quarter of 2009, (thatis, from the fourth quarter to the first quarter), according to advance estimates released by the Bureau ofEconomic Analysis. In the fourth quarter, real GDP decreased 6.3 percent.
The Bureau emphasized that the first-quarter “advance” estimates are based on source data thatare incomplete or subject to further revision by the source agency (see the box on page 4). The first-quarter “preliminary” estimates, based on more comprehensive data, will be released on May 29, 2009.
The decrease in real GDP in the first quarter primarily reflected negative contributions fromexports, private inventory investment, equipment and software, nonresidential structures, and residentialfixed investment that were partly offset by a positive contribution from personal consumptionexpenditures (PCE). Imports, which are a subtraction in the calculation of GDP, decreased.
The slightly smaller decrease in real GDP in the first quarter than in the fourth reflected an upturnin PCE for durable and nondurable goods and a larger decrease in imports that were mostly offset bylarger decreases in private inventory investment and in nonresidential structures and a downturn infederal government spending.
Motor vehicle output subtracted 1.36 percentage points from the first-quarter change in real GDPafter subtracting 2.01 percentage points from the fourth-quarter change. Final sales of computers added0.05 percentage point to the first-quarter change in real GDP after subtracting 0.02 percentage pointfrom the fourth-quarter change

PERSONAL INCOME AND OUTLAYS March 2009

Personal income decreased $34.4 billion, or 0.3 percent, and disposable personal income (DPI)decreased $1.8 billion, or less than 0.1 percent, in March, according to the Bureau of Economic Analysis.Personal consumption expenditures (PCE) decreased $24.2 billion, or 0.2 percent. In February,personal income decreased $24.3 billion, or 0.2 percent, DPI increased $0.2 billion, or less than 0.1percent, and PCE increased $39.1 billion, or 0.4 percent, based on revised estimates.
Real disposable income increased less than 0.1 percent in March, in contrast to a decrease of 0.3percent in February. Real PCE decreased 0.2 percent, in contrast to an increase of 0.1 percent.
2008 2009

Nov. Dec. Jan. Feb. Mar.

(percent change from preceding month)

Personal income, current dollars -0.5 -0.3 0.1 -0.2 -0.3

Disposable personal income: Current dollars -0.4 -0.3 1.6 0.0 0.0

Chained (2000) dollars 0.7 0.2 1.4 -0.3 0.0

Personal consumption expenditures: Current dollars -0.7 -1.1 1.1 0.4 -0.2

Chained (2000) dollars 0.4 -0.6 0.9 0.1 -0.2
Wages and salaries
Private wage and salary disbursements decreased $32.9 billion in March, compared with a decreaseof $28.8 billion in February. Goods-producing industries' payrolls decreased $15.3 billion,compared with a decrease of $14.2 billion; manufacturing payrolls decreased $7.8 billion, comparedwith a decrease of $7.4 billion. Services-producing industries' payrolls decreased $17.6 billion,compared with a decrease of $14.6 billion. Government wage and salary disbursements increased$2.9 billion compared with an increase of $1.9 billion.
Other personal income
Supplements to wages and salaries increased $2.1 billion in March, compared with an increase of $2.5 billion in February.
Proprietors' income decreased $5.9 billion in March, in contrast to an increase of $1.9 billion in February.Farm proprietors' income increased $0.2 billion, in contrast to a decrease of $1.2 billion. Nonfarm proprietors'income decreased $5.9 billion, in contrast to an increase of $3.0 billion.
Rental income of persons decreased $3.3 billion in March, compared with a decrease of $2.6 billion in February.Personal income receipts on assets (personal interest income plus personal dividend income) decreased $20.7 billion,compared with a decrease of $20.6 billion. Personal current transfer receipts increased $18.8 billion,compared with an increase of $17.2 billion.
Contributions for government social insurance -- a subtraction in calculating personal income -- decreased$4.4 billion in March, compared with a decrease of $4.3 billion in February.