This page has been archived and commenting is disabled.
The Recovery, Unemployment, and Earnings Are All Based on Fraud and Accounting Gimmicks
For six years, we’ve been told that the US economy is in recovery.
This is a totally bogus narrative that was dreamt up by the Central Planners running the Fed. Remember the “green shoots” craze of 2009. It was BS. The US economy is a disaster and has been since 2009.
The bean counters in Washington fabricate a load of nonsense to “prove” otherwise, but telling someone who is 5’6” tall that they are actually 6” tall doesn’t change their height.
Similarly, telling Americans experiencing a REAL unemployment rate of 10+% and an underemployment rate in the high teens that the economy is “recovering” doesn’t change their real-world experience.
As far as real economic growth goes, if you want a clear picture, you need to look at nominal GDP growth. The reason for this is that because the Fed greatly understates inflation, the official GDP numbers are horribly inaccurate.
By using nominal GDP measures, you remove the Feds’ phony deflator metric and the other accounting gimmicks created by the bean counters to overstate growth. With that in mind, consider the year over year change in nominal GDP that has occurred.
Historically, the level of economic growth post 2010 has been associated with recessions. Small wonder that this “recovery” actually feels like an economy that is not growing: when you take out the accounting gimmicks, GDP is flat lining.
Speaking of accounting gimmicks consider the massive divergence between corporate revenue growth and EPS growth (hat tip Lance Roberts). You cannot fake revenues: they represent real growth. EPS on the other hand, can be massaged a million different ways.
Notice that the un-massaged growth post-2009 is just 30%. The massaged “growth” is 250%. Bear in mind, executive stock options are linked to EPS… so guess who got rich in the process.
Again, this whole economic “recovery” and stock market boom is based on accounting gimmicks and outright fraud. It’s a giant house of cards that is primed to come crashing down… just as it did in 2000, 2007… and will today.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
You can pick up a FREE copy at:
http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Graham Summers
Phoenix Capital Research
- advertisements -
Wouldn't it be something that the Fed was trading the S@P futures and other futures to underpin their bull market. After all the futures open up the stock market. I have seen this story before with the same participants.
I hope they keep it up as I profit and exchange that for real assets.
-
Like water buffalo, fish, and baby crocs.
A six year recovery? Cancer patients get out of the hospital faster.
Isn't a "six year recovery" an oxymoron?
You'd have to have a very special kind of mental impairment to actually believe a few hundred bureaucrats in DC can accurately count up all the economic activity of a country of 300+ million people.
New Anonymous op as White House still ignores murder of American reporter Serena Shim in Turkey
If you use a .5% FRAUDULANT DEFLATER instead of the real inflation imput, say 2-3% I bet only 2 quarters since 2009 show any growth
There is absolutely no massaging of any econometric models to confirm the biases of politicians, economists in DC.
What U R really saying is that the numbers are just really a fiction.
Seeing as how EVERYTHING is a figment of our febrile imagination, from the time we are born till the time we are rendered extinct, why concern ourselves about it?
Education? Fiction. Abe Lincoln was murderous maniac who couldn't negotiate with the south about secession without murdering and maiming 4.9% of the male population, (that's about 25,000,000 today) and no where will you read anything in the education/INDOCTRINATION?FICTION!!) about it.
Some of our biggest so-called truths are nothing but propaganda to serve the left or right and play to the feeeeelings of those they purport to represent.
Pubic SErvice??? -- Yeah, the woefully most untalented bullshitters among us only enter into the arena to serve themselves or a tiny fraction of their constituency that pays them off.
Forget about fiction, Jake. It's Chinatown.
The traitorous southern scum were lucky America didn't enforce the Constitutional penalty of death. In retrospect, that was a huge mistake.
This article is a lot of nonsense. Profit margins are about 11%, so if revenues go up by 30% and all that increased revenue goes straight to profit, then profits go up ~300%. It all doesn't of course, but perhaps half of increased revenue goes to the bottom line after basic overhead is covered by base 2009 revenue, lower rates make expenses go down, buybacks reduce the float somewhat, and in the end you get a 250% increase in GAAP profit, on a per share basis. There is nothing wrong with that.
Of course, if revenues go down, the reversal can be just as quick and dramatic.
I think you missed the picture in a big way. That 250% increase was in non-GAAP EPS growth, hence the referral to "massaged numbers." If the EPS had been presented purely using GAAP they wouldn't be near as high, they would be what the author stated.
p/e legal fraud is based now on NON-GAAP FORWARD OPERATING EARNINGS, keep moving the goalposts you CON-ARTISTS!
GDP is bogus on multiple levels beyond what's mentioned here. Say TPTB decide to spend money to build a tank to combat another imaginary threat. That's a loss to the real economy. Yet it's counted positively towards GDP.
Similarly, double the wages of all government employees as was just done in [Saudi Arabia, was it?]. GDP (measured as 'we' do) goes up. But this is a positive thing?
It was China
My Econ 101 teacher used to say, "military spending causes a false rise in the GDP."
"The Recovery, Unemployment, and Earnings Are All Based on Fraud and Accounting Gimmicks"
NO!!!!! I'm shocked, so SHOCKED, I tell you...
Make up a big lie and wish real, real hard......
The USA is a Republic with elected representatives who serve the public and rigidly adhere to the US Constitution.....
LSHMSH (Laughing so hard my stomach hurts); I'm suing...see you in court if I'm not laid up in the hospital...cheers!!
You'll never hear the REAL numbers on what it costs us to keep the negros around, either.
You are in error. I must correct you. It is spelled "negroes", not "negros". That is all.