The story is about how the hosts at CNBC were stunned by having the truth told to them about the state of the American economy. The truth may not set you free, but at least it might get you to start doing what’s needed, assuming that anyone any longer knows that that is. Here is what they were told:
“There is no acceleration in underlying economic activity.”
“There’s this wrong concept that I keep on hearing about in the financial press about the acceleration in economic growth… It isn’t happening!”
“We had a horrible retail sales number, we had a horrible durable goods number, we’re likely to have a very disappointing retail sales number coming forward, this month we have a strong payroll number we say everything’s great – it’s not great….it’s been the same thing for the last five years, there’s no improvement in the economy!”
“After a string of dismal data on durable goods, retail spending, and inventories, we get a good jobs number and everyone saying the economy’s good – it’s not good!”
For me, this is perfectly in keeping with this story today: US budget deficit running 6.2 percent higher than last year, with actual spending up 8.3%. But for the rest of you, how can it possibly make sense?
Law of Markets 