Greetings everyone to the second edition of Econ’ Notables & Quotable.  We’re still trying to get the kinks out of this, get the format right and what have you.  As always, I look forward to your comments and critique.  If you have any ideas on how to improve EN&Q, don’t hesitate to let me know.  Well, without further adieu, let’s begin the show!

Here's how the NY Times described the "surprse" not-so-bad Fourth Quarter GDP yesterday:

The actual decline in the gross domestic product — at a 3.8 percent annual rate — fell short of the 5 to 6 percent that most economists had expected for the fourth quarter. But that was because consumption collapsed so quickly that goods piled up in inventory, unsold but counted as part of the nation’s output.

“The drop in spending was so fast, so rapid, that production could not be cut fast enough,” said Nigel Gault, chief domestic economist at IHS Global Insight. “That is happening now, and the contraction in the current quarter, as a result, will probably exceed 5 percent.”

(hat tip Ksho1)

This is the concluding installment in my series examining how the most reliable economic indicators during the Inflationary Era, perform during periods of deflation. I have done this by examining the Roaring Twenties, Great Depression, New Deal, and the Post WW 2 deflationary recession. The reason for doing so is that we are now in the midst of the first deflationary recession in 60 years. Most indicators used by economists and pundits do not exist or have never been tested that far back in time. Indicators which may work during inflations may not work during deflations. Having set forth the data for you, today we show exactly how two such indicators -- monetary and interest rates -- panned out, and the implications of those conclusions to our present situation.

This was originally posted on Grist.org

The N.Y. Times, in an article entitled "Geography is dividing Democrats over energy", makes much of an alleged split between those on the coasts, east and west, vs. those in the middle, as in the Midwest and Plains states. Somehow coal and manufacturing are grouped together, against a concern for global warming:

"There's a bias in our Congress and government against manufacturing, or at least indifference to us, especially on the coasts," said Senator Sherrod Brown, Democrat of Ohio. "It's up to those of us in the Midwest to show how important manufacturing is. If we pass a climate bill the wrong way, it will hurt American jobs and the American economy, as more and more production jobs go to places like China, where it's cheaper."

The House Just passed the Stimulus and the majority of the debate was on tax cuts.

Who here knows that continual mantra of tax cuts being sung in D.C. is just the echos of a dead religion? Yet debate it back and forth they go.

How about not give any tax cuts in the Stimulus and move onto the real portions of the package which will have the best effect?

Citizens for Tax Justice have just released an analysis on the GOP tax cuts versus the current tax cuts in the Stimulus bill.