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US Economy Grew Less Than Expected In Q2: Worst Economic Recovery Since WWII Revised Even Weaker

Tyler Durden's picture




 

The much anticipated Q2 GDP number with prior revisions is out and, as expected, Atlanta Fed's 2.4% estimate was once again nearly spot on, with the advance release coming in at 2.3%, below Wall Street's consensus estimate of 2.5%. But more importantly, as part of the annual revision to prior GDP data, one which as we observed would include the infamous "double seasonal adjustments", both Q1 2014 and 2015 GDP prints, the "winter" collapse, was revised well higher, with Q1 2014 increase from -2.1% to -0.9%, while last quarter's final GDP which had printed at -0.2% is now 0.6%.

 

The breakdown by revised component:

And the culprit: the capex recovery is officially dead - fixed investment as a % of GDP dropped to the lowest since Q2 2012.

From the report:

Real personal consumption expenditures increased 2.9 percent in the second quarter, compared with an increase of 1.8 percent in the first. Durable goods increased 7.3 percent, compared with an increase of 2.0 percent. Nondurable goods increased 3.6 percent, compared with an increase of 0.7 percent. Services increased 2.1 percent, the same increase as in the first quarter.

 

Real nonresidential fixed investment decreased 0.6 percent in the second quarter, in contrast to an increase of 1.6 percent in the first. Investment in nonresidential structures decreased 1.6 percent, compared with a decrease of 7.4 percent. Investment in equipment decreased 4.1 percent, in contrast to an increase of 2.3 percent. Investment in intellectual property products increased 5.5 percent, compared with an increase of 7.4 percent. Real residential fixed investment increased 6.6 percent, compared with an increase of 10.1 percent.

 

Real exports of goods and services increased 5.3 percent in the second quarter, in contrast to a decrease of 6.0 percent in the first. Real imports of goods and services increased 3.5 percent, compared with an increase of 7.1 percent.

 

Real federal government consumption expenditures and gross investment decreased 1.1 percent in the second quarter, in contrast to an increase of 1.1 percent in the first. National defense decreased 1.5 percent, in contrast to an increase of 1.0 percent. Nondefense decreased 0.5 percent, in contrast to an increase of 1.2 percent. Real state and local government consumption expenditures and gross investment increased 2.0 percent, in contrast to a decrease of 0.8 percent.

 

The change in real private inventories subtracted 0.08 percentage point from the second-quarter change in real GDP after adding 0.87 percentage point to the first-quarter change. Private businesses increased inventories $110.0 billion in the second quarter, following increases of $112.8 billion in the first quarter and $78.2 billion in the fourth.

 

Real final sales of domestic product -- GDP less change in private inventories -- increased 2.4 percent in the second quarter, in contrast to a decrease of 0.2 percent in the first.

Some further notes from the WSJ, which observes that "the economic expansion--already the worst on record since World War II--is weaker than previously thought, according to newly revised data."

From 2012 through 2014, the economy grew at an all-too-familiar rate of 2% annually, according to three years of revised figures the Commerce Department released Thursday. That's a 0.3 percentage point downgrade from prior estimates. The revisions were released concurrently with the government's first estimate of second-quarter output.

 

Since the recession ended in June 2009, the economy has advanced at a 2.2% annual pace through the end of last year. That's more than a half-percentage point worse than the next-weakest expansion of the past 70 years, the one from 2001 through 2007. While there have been highs and lows in individual quarters, overall the economy has failed to break out of its roughly 2% pattern for six years.

 

The latest revision, however, did significantly upgrade what was seen as a historically wretched winter of 2014.

The upward revision to the first quarter of 2014 was largely due to revised data on construction spending, specifically on power structures. The revision reflected both new seasonal adjustments and newly available data.

 

That 2011 figure, and other data, could be revised in future years. Commerce Department officials are undertaking a comprehensive review of GDP data with the intent of refining the seasonal adjustment process.

And while the historical revisions will surely draw many snickers among those who fail to see any difference between the US and Chinese Departments of Truth, especially since the Q2 GDP number will be will be revised as the Fed sees fit in just one month to fit the rate hike narrative, what is most troubling was the downward revision to prior years, with GDP in the 2011-2014 period now said to be growing at a 2.0% pace, significantly below the 2.3% reported previously.

The worst "economic expansion" in history was even worse than previously expected.

 

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Thu, 07/30/2015 - 08:45 | 6370513 Bill of Rights
Bill of Rights's picture

Common Core GDP...

Thu, 07/30/2015 - 08:50 | 6370526 NoDebt
NoDebt's picture

All the believability of a Chinese accounting statement.

Thu, 07/30/2015 - 08:53 | 6370535 lordylord2
lordylord2's picture

Who exactly is the government trying to decieve?  Anyone with a brain knows these numbers are BS and everyone else is waiting for football season to start.

Thu, 07/30/2015 - 08:56 | 6370546 philipat
philipat's picture

Perhaps the 90% Kardashian watchers who don't have MUCH brain?

Thu, 07/30/2015 - 09:03 | 6370563 Headbanger
Headbanger's picture

95% of the sheeple don't even know what GDP is or means.

And they don't care nor want to know either.

But if CNBS says it's a good number bout sumtin... then all is well.

Fact is... the average American... isn't.

Thu, 07/30/2015 - 09:27 | 6370649 negative rates
negative rates's picture

And nobody took better care of their economic expansion than the Fed, According to the fed.

Like well is just another hole in the ground, that kind of well?

Thu, 07/30/2015 - 09:51 | 6370752 VinceFostersGhost
VinceFostersGhost's picture

 

 

Fact is... the average American... isn't.

 

This calls for a Mark Dice video. I'll sell you this gold eagle for $50........OK......$49.

Thu, 07/30/2015 - 10:13 | 6370840 r101958
r101958's picture

I hate repeating this. Who cares about the breakdown in categories etc? The actual/accurate GDP will only be revealed when/if the gov't uses an accurate deflator percent (around 7-8% would be close). Until then we can discuss meaningless categories and numbers until we are blue in the face and it still won't reveal reality.

Thu, 07/30/2015 - 10:19 | 6370859 froze25
froze25's picture

Nailed it.

Thu, 07/30/2015 - 10:34 | 6370903 Money Counterfeiter
Money Counterfeiter's picture

Well okay then time for a rate hike.  

Thu, 07/30/2015 - 11:48 | 6371181 JamesBond
JamesBond's picture

"Obama encouraged Kenyans to “choose the path to progress” 

====

 

If they only knew.

 

jb

Thu, 07/30/2015 - 10:40 | 6370926 nuubee
nuubee's picture

The category breakdown goes a long way to demonstrate lying.

 

For instance, in the second chart, look at how often exports has shown growth despite the fact that we're living in a global economic slowdown and a strengthening dollar.

 

How exactly can export contribution to GDP possibly be growing in such conditions?? I say that's impossible, literally impossible. Who are we exporting to, no one is buying and no one can afford dollars.

Thu, 07/30/2015 - 10:53 | 6370965 r101958
r101958's picture

Except that these numbers, being massaged, are meaningless when it comes to drawing accurate conclusions. How can we arrive at reality if the numbers we use are skewed? Answer- we can't and so it is an exercise in futility.

Thu, 07/30/2015 - 11:00 | 6370993 nuubee
nuubee's picture

There's certain things that even numbers can't hide. We know the world economy is slowing down. We know much of this has to do with the population bubbles in much of the west, China, and Japan, etc. We know the dollar is strengthening (one thing they can't hide). I don't need accurate conclusions from real data to conclude that their numbers are bullshit. The fact that their numbers are bullshit tells me a lot.

Thu, 07/30/2015 - 11:22 | 6371077 r101958
r101958's picture

Yes. The BS can show that it is BS but they are not managing our perceptions....they are managing the perceptions of those who don't ask that next question. The perception of the 'unbaptized' so to speak. At the risk of posting too much, I share below some of my past posts on the subject of perceptions:

by r101958
on Sat, 04/16/2011 - 14:38

The two political parties are really one party....and only really end up distracting us from the truth and getting us to argue with each other.  As well, there is so much selling of recovery koolaid going on out there that it is really hard to fathom how people who don't do their own studying can possibly understand what is going on. Worse yet is the fact that the folks in the gov't are so wrapped up in their own worlds where perception means everything and substance counts for squat that they don't realize that we are in a situation that can not be corrected by perception. I have a question for them; how many of them have ever run out and bought a car/house with a pocket full of perceptions?

by r101958
on Thu, 04/28/2011 - 09:23

The economy has been in the schmidt hole since late 2007. The rest of this noise has been a manufactured 'recovery'. Meant to create positive perceptions for those with no critical thinking abilities.

by r101958
on Fri, 07/22/2011 - 17:52

The one fact that most politicians fail to grasp is that there will be no 'closure' for the public until they know that the system has been purged of toxic sludge. In other words, most of us know that the economy is a house of cards built on sand. This will not change no matter what type of perceptions that Washington tries to create with fudged numbers and tweaked reporting. At least a large minority of Americans realize that nothing is really being addressed so long as the TBTF's have to use 'Mark to Fantasy' accounting to remain afloat, the government is spending 1.5 trillion more than it takes in and there is huge overhanging public and private debt.

r101958
Wed, 10/05/2011 - 16:42

Robo - what exactly is the value of technical analysis in a manipulated market? Currently, the markets are all about creating perceptions....not much about substance. You want true price discovery? How about we start with mark to market.....and please, none of the rationalizations about the market value not really mattering in this environment.

Wed, 02/20/2013 - 12:38 | 3260069 new r101958

Yep. It is all a matter of managing perceptions, all while allowing the TBTF's to take profits.

Or crush the commodity complex (and bonds and bank deposits) so the retail/small investor has nowhere else to go but to equities. Then when equities are sufficiently bubbled up the big boys (TBTF's) will then take out the money they are currently propping it up with leaving the retail/small investor to bite the bullet....again.

Thu, 07/30/2015 - 16:48 | 6372581 UncleChopChop
UncleChopChop's picture

hey r101958 - thanks for that. i had actually never focused on the gdp deflator, as obvious as it may be in hindsight as a crooked tool of fudging all the nums. are there any resources you can point to online that explain it more? ie, ive learned all about the hedonic adjustments and that nonsense with cpi.. wondering if the same applies directly or is slightly different.

Thu, 07/30/2015 - 10:27 | 6370876 Consuelo
Consuelo's picture

Actually, the best one came out just the other day - he was taking a poll on a 1% 'White privilege' tax, and about 90% of the passers by signed it...

Thu, 07/30/2015 - 10:40 | 6370920 Dig Deeper1
Dig Deeper1's picture

Who exactly is the government trying to decieve?  Maybe ALGOS?

Thu, 07/30/2015 - 10:54 | 6370970 r101958
r101958's picture

It is an effort to manage perceptions.

Thu, 07/30/2015 - 08:54 | 6370540 philipat
philipat's picture

So now recessions have been abolished as well as Equity market declines?

Thu, 07/30/2015 - 08:59 | 6370554 Everybodys All ...
Everybodys All American's picture

There can never be another recession as long as these central planning progressives are In control.

Thu, 07/30/2015 - 09:01 | 6370559 philipat
philipat's picture

Important spelling correction, it should be Progressives with a capital "P" because otherwise it not very progressive at all.IMHO

Thu, 07/30/2015 - 11:04 | 6371010 Creepy A. Cracker
Creepy A. Cracker's picture

"We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive."  C. S. Lewis

Thu, 07/30/2015 - 08:55 | 6370542 Dr. Engali
Dr. Engali's picture

Brought to you by the same people who give us mark to fantasy accounting.

Thu, 07/30/2015 - 09:37 | 6370701 Serfs Up
Serfs Up's picture

The fine print at the bottm of the release says, "These results were audited by Toshiba and found to be complete and true"

Thu, 07/30/2015 - 09:50 | 6370762 Hal n back
Hal n back's picture

reuters reported this am that the GOVT says there are no structural issues in GDP data construction--thats basically the same as china reported last week

 

 

Thu, 07/30/2015 - 08:51 | 6370529 Headbanger
Headbanger's picture

Must.... raise..... rates..... no....  matter.....  what....

Thu, 07/30/2015 - 09:30 | 6370673 negative rates
negative rates's picture

Must is a tough nut to crack.

Thu, 07/30/2015 - 10:25 | 6370768 VinceFostersGhost
VinceFostersGhost's picture

 

 

We raise rates......we all die........just so you know.

 

But we will talk about it.....a lot.

Thu, 07/30/2015 - 10:29 | 6370884 Enki Anu
Enki Anu's picture

Except farming and weapon producing , what is our domestic product?
And as California farming died, half of the farming died with it. I don't call the freaking IPhone a domestic product.

Thu, 07/30/2015 - 08:45 | 6370514 B2u
B2u's picture

Total BS. 

Thu, 07/30/2015 - 08:46 | 6370517 duo
duo's picture

The minus sign will be removed from all future Fed data.

Call it the "absolute value adjustment, seasonal"

Thu, 07/30/2015 - 08:53 | 6370536 Groundhog Day
Groundhog Day's picture

it's an algebraic expression.  when you move x from one side of the equation to the other naturaaly the sign has to change...

for those who believe this so called "data".  I have an excellent investment oppurtunity in bridges

Thu, 07/30/2015 - 09:50 | 6370756 813kml
813kml's picture

The Fed tired of basic math and has moved on to irrational numbers.

Thu, 07/30/2015 - 10:12 | 6370837 GeezerGeek
GeezerGeek's picture

You reminded me of a T-shirt I saw for sale once. It contained the Greek letter pi and a symbol showing the square root of minus 1.

The square root says to pi, "you're irrational".

Pi says to the square root, "you're imaginary".

The ad was better than my simply describing it, because the T-shirt adorned a cute young lady with a mischievious smile.

Thu, 07/30/2015 - 08:47 | 6370518 replaceme
replaceme's picture

double revised plus good!

Thu, 07/30/2015 - 08:48 | 6370519 replaceme
replaceme's picture

In newspeak, the minus will become single plus good.

Thu, 07/30/2015 - 10:04 | 6370813 FreeMoney
FreeMoney's picture

+10,000 You are correct.

US ECONOMY POSTS SOLID 2.3 PERCENT GROWTH RATE IN Q2

http://hosted.ap.org/dynamic/stories/U/US_ECONOMY?SITE=AP&SECTION=HOME&T...

Thu, 07/30/2015 - 08:48 | 6370521 mayhem_korner
mayhem_korner's picture

 

 

I wonder if the BLS analysts break into circle-jerk mode when the order comes down from the Recovery of the Month Club leaders to use "double seasonal adjustments".  Might even create enuf euphoria for them to suspend the porn-surfing for a couple hours...

Thu, 07/30/2015 - 09:13 | 6370587 Rainman
Thu, 07/30/2015 - 08:49 | 6370524 jpc578
jpc578's picture

But perhaps more notable, is the downward revision to prior years, with GDP in the 2011-2014 period now said to be growing at a 2.0% pace, significantly below the 2.3% reported previously.

Which only calls further into question the BLS NFP numbers.

Thu, 07/30/2015 - 09:14 | 6370601 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

But of course they want to show upward trajectory, so yeah.

Thu, 07/30/2015 - 08:51 | 6370528 Seasmoke
Seasmoke's picture

HA. I still see A DEPRESSION. 

Thu, 07/30/2015 - 09:32 | 6370685 negative rates
negative rates's picture

Shhh, you can't tell um until we are out of it.

Thu, 07/30/2015 - 08:51 | 6370530 overmedicatedun...
overmedicatedundersexed's picture

BLS, oops that was the Fed's profit on debt data, got put in GDP in error

Thu, 07/30/2015 - 08:56 | 6370548 d edwards
d edwards's picture

Orwellian doubleplusgood seasonal adj has arrived!

pure gov propaganda lies.

Thu, 07/30/2015 - 08:51 | 6370531 Bill of Rights
Bill of Rights's picture

Good numbers Gold down, bad numbers Gold down, So so numbers Gold down...As Paul Volcker once said " Gold was my enemy "

Thu, 07/30/2015 - 09:16 | 6370607 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture
"I have one other issue I'd like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here. If we are dealing with psychology, then the thermometers one uses to measure it have an effect. I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market. There's an interesting question here because if the gold price broke [lower] in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology. Now, we don't have the legal right to sell gold but I'm just frankly curious about what people's views are on situations of this nature because something unusual is involved in policy here. We're not just going through the standard policy where the money supply is expanding, the economy is expanding, and the Fed tightens. This is a wholly different thing." Alan Greenspan, Federal Reserve Minutes from May 18, 1993
Thu, 07/30/2015 - 09:19 | 6370617 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

 

"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.  Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K."

Eddie George, the governor of the Bank of England, in late 1999.

Thu, 07/30/2015 - 09:22 | 6370641 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

Gold is definitely not being manipulated, rather it is being "managed", semantics matter.

Thu, 07/30/2015 - 09:42 | 6370721 SoilMyselfRotten
SoilMyselfRotten's picture

Potato, po-tah-toe

Thu, 07/30/2015 - 08:53 | 6370533 Dr. Engali
Dr. Engali's picture

I tried revising my bank account up from $10 to $10,000 and the nice lady in the mortgage department looked at me like I was nuts. Well, she's really not too far off, but still....

Thu, 07/30/2015 - 08:53 | 6370537 NoDebt
NoDebt's picture

Tyler-  I could SWEAR there was an article here a month or so ago where one of the Fed banks completely discredited the double seasonal adjustment model (hyped by Liesman who is NOT AN ECONOMIST, I will remind everyone).  In that article I thought the Fed had decided to delay the implementation of double seasonal adjustment as a result, at least pending further investigation.  Now they're using it to report live data?

I feel like I'm taking crazy pills.  Could you explain what I missed?

 

Thu, 07/30/2015 - 09:39 | 6370709 NoDebt
NoDebt's picture

Thank you for doing the digging.  I knew I had read that somewhere- I even commented on it at the time!

So I guess it went like this:  Liesman and the economists at the BEA get all worked up about this new "double seasonal adjustment" process to avoid ever posting a negative GDP print again.  Liesman goes on TV and hypes it for them.  The NY Fed, trying to be the "adults in the room" completely debunks it as bullshit.  The BEA gives the NY Fed the middle finger and does it anyway.

 

Thu, 07/30/2015 - 09:44 | 6370736 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

Concise thumb nail sketch in a nutshell.

Thu, 07/30/2015 - 10:38 | 6370918 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

That was actually meant as a compliment, but whatever.

Thu, 07/30/2015 - 09:39 | 6370708 negative rates
negative rates's picture

People believe what they want to believe, and YOU believed a lie, simple as that.

Thu, 07/30/2015 - 08:55 | 6370543 ajkreider
ajkreider's picture

They also seasonally adjusted 2012-13 Q3 way down. Net, the seasonal smoothing depressed the GDP numbers.

Thu, 07/30/2015 - 09:29 | 6370670 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

To show an upward trajectory to warrant the coming rate hike.

Thu, 07/30/2015 - 08:57 | 6370545 mademesmile
mademesmile's picture

That's ok. I have had people telling me the doctor on planned parenthood videos isn't talking about profit when she said they would be happy with more then break even. That whatever you sell something for IS the cost of it. Americans don't know the difference between cost and profit. How can they know what what a GDP number is supposed to be?

Thu, 07/30/2015 - 08:57 | 6370550 overmedicatedun...
overmedicatedundersexed's picture

dealing in dead human babies? I thought only the monsters of isis were capable of such acts..

Thu, 07/30/2015 - 09:04 | 6370567 mademesmile
mademesmile's picture

I blame the media. Literally 5 times the coverage of a mascot lion then this story. Someone was at the hunters house with a burn in hell sign and the reporter didn't ask them why they were being so hateful and trying to incite violence. Did say he understood the sentiment. Hold up the sign at PP and all the media will report on is how it's become dangerous for those who want to help women make difficult personal choices. Hypocrisy much?

Thu, 07/30/2015 - 09:13 | 6370598 overmedicatedun...
overmedicatedundersexed's picture

made, the media as you call it is just doing it's job- keeping us all in the dark about anything of importance. seems international mega corps control the media, what else do you expect??

Thu, 07/30/2015 - 09:20 | 6370628 Realname
Realname's picture

Its a good thing it wasnt a black panther...riots everywhere against 'racist' hunters.

Thu, 07/30/2015 - 09:45 | 6370712 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

 

In terms of the disparity in outrage shown, it may have something to do with there being 7.3 billion humans and approximately 30,000 lions.  Not saying it's right. 

At current rates, by 2050 projections show there being as many as 11 billion humans and African lions being extinct.  Not saying it's right. But it could be.

Thu, 07/30/2015 - 08:57 | 6370551 Atomizer
Atomizer's picture

Capital flow vs FDI ass cheek pinch. 

Thu, 07/30/2015 - 09:02 | 6370564 r101958
r101958's picture

Wed, 12/18/2013 - 10:22 | 4257074 new r101958  

"Inflation? Yes, consumer price inflation is low. But what that shows is that real demand is still in a deleveraging trough. The money multiplier – the ratio of money supply to the monetary base – collapsed in 2008. It has not come back. Neither has the economy."

This is true if you believe in the inflation numbers released by the gov't. Understating the inflation rate is one of the most insidious forms of financial repression. It affects everything else. It is used to determine yearly private sector and government raises, it is used to determine cost of living increases for pensioners, SS recipients and many other things. But, even more than that it is used to determine many other gov't released statistics- GDP for one. If inflation is under reported then the GDP deflation figure is incorrect. If the gov't says inflation is at 1.5% then use that against whatever the gain is in the GDP. So, if the gov't states that GDP was up by 2.0% then the nominal gain in GDP over last year's GDP was actually 3.5%. However, if inflation is really 7% then that nominal gain of 3.5% is actually equates to a Y/Y GDP of -3.5%. Lies, lies and statistics eh?

 

Thu, 07/30/2015 - 09:04 | 6370570 Feel it Reel it
Feel it Reel it's picture

As Bill Clinton/Eric Holder would say......Depends on what your definition of GDP is, is.......

Thu, 07/30/2015 - 09:07 | 6370575 me or you
me or you's picture

Pure BS but remember a lie doen't last forever especially when the reality shows the opposite.

 

- Let's wait and see what other lie the can come up when every American is unemployment and marching to Washington DC demanding the heads of every traitor in the US government.

Thu, 07/30/2015 - 09:12 | 6370596 A is A
A is A's picture

When I apply for a loan, can I just state my doubly seasonally adjusted income?

Thu, 07/30/2015 - 09:36 | 6370693 BeaverCream
BeaverCream's picture

Yes, you can also use a "birth death model" where you can also make up bullshit.  However, unlike the fed, no one will fucking believe you.

Thu, 07/30/2015 - 10:02 | 6370804 cheech_wizard
cheech_wizard's picture

AS long as you mark down fetal tissue as an additional asset, you'll be fine.

Thu, 07/30/2015 - 09:16 | 6370608 Chuck Knoblauch
Chuck Knoblauch's picture

Bullshit.

Thu, 07/30/2015 - 09:20 | 6370627 user2011
user2011's picture

Here we go, the power of compound seasonal adjustments...    The world is happy days again...

Thu, 07/30/2015 - 09:22 | 6370637 madcows
madcows's picture

If it's a government statistic, you may as well get your news from the tabloids.  These numbers are more than bogus, more than make believe.  They are duplicitous.  They are intended to deceive.

Thu, 07/30/2015 - 09:22 | 6370639 BustainMovealota
BustainMovealota's picture

"Lies, damned lies, and statistics"

Thu, 07/30/2015 - 09:26 | 6370652 Sanity Bear
Sanity Bear's picture

the deflator is pure fraud

Thu, 07/30/2015 - 09:26 | 6370654 scatha
scatha's picture

What expansion? Crisis is getting worse and worse. It will take little while until people who just got new low wage job figure out that the cost of holding job is higher than the pay and massively leave already decimated workforce back to family basement or social or corporate welfare.

Well paying Oil and coal industry jobs are collapsing as we speak. Cost of living of ordinary people skyrocketed, food, rent,gas, utilities on the rise much faster than income ever was. Now as

China growth is collapsing their is no other way for big Wall Street scum to make money and pretend and extend the "good times". Even luxury good sales collapsed. The talk of rate increase is just to prop up dollar to collapse euro needed by Germany to export into the world of dying demand.

Game over.

The times of slaves of wage are here.

https://contrarianopinion.wordpress.com/2015/01/28/slaves-of-wage/

 

Thu, 07/30/2015 - 09:32 | 6370679 Budnacho
Budnacho's picture

When this house of cards finally collapses...oh man it's gonna be EPIC!...

Thu, 07/30/2015 - 09:32 | 6370682 MFL8240
MFL8240's picture

Global economy is toast and the US economy is growing?  How so?  Fiat paper and lies?

Thu, 07/30/2015 - 09:33 | 6370686 BeaverCream
BeaverCream's picture

Outback steakhouse served 2.3% more blooming onions...what a recovery.

Thu, 07/30/2015 - 11:02 | 6371000 Budnacho
Budnacho's picture

Don't forget the uptick in Toilet-Paper sales b/c of thse bloomin onions!

Thu, 07/30/2015 - 09:41 | 6370718 dobermangang
dobermangang's picture

I believe the Obama administration is using the same accounting method that Toshiba used.  Or mabye visa versa. 

Thu, 07/30/2015 - 09:44 | 6370737 gregga777
gregga777's picture

At the beginning of the year the rent on my sh***y, roach-infested, 2-bedroom apartment in Lake City, Florida, went from $550 to $650 per month. That's an 18.18% increase in one year. Obviously, one pays rent every month, too. So, it hardly helps that some infrequently purchased high-technology consumer durables theoretically "fell" in price or that gasoline prices temporarily decreased.

Thu, 07/30/2015 - 09:54 | 6370774 dobermangang
dobermangang's picture

Just a tip for anyone that has roaches.  Use Dupont's Advion Roach Bait Gel.  Forget everything else(sprays, foggers, borax).  This stuff is a miracle product.  It's crack for roaches and actually works at getting rid of them for good.  

Thu, 07/30/2015 - 11:08 | 6371030 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

"I can't live in an i-pad."

Thu, 07/30/2015 - 09:48 | 6370750 gregga777
gregga777's picture

"Affirmative Action" Barry Obama is factually challenged or an outright psychopathic liar. I wouldn't believe "The Father of Lies" if he said that he was pissing on my cowboy boots. Neither do I believe anything promulgated by the Federal Government or their whores in the media.

Thu, 07/30/2015 - 10:20 | 6370861 atlasRocked
atlasRocked's picture

He is the only president to be called a systematic liar by a pulitzer prize winner, Seymour Hersh.   He's a liar.   "conscientiously stupid" as MLK phrased.

Thu, 07/30/2015 - 09:50 | 6370754 Mike Honcho
Mike Honcho's picture

Imports repetitively down, must be from all those factories popping up.

Thu, 07/30/2015 - 09:53 | 6370770 The Carbonator
The Carbonator's picture

No Shit.  Very shocked.

 

/sarcy

Thu, 07/30/2015 - 09:58 | 6370785 poldark
poldark's picture

And that is after printing $4tn.

Thu, 07/30/2015 - 10:02 | 6370803 surfvin
surfvin's picture

https://m.youtube.com/watch?v=FRMA0ENx-wg Spread the word not the turd!

Thu, 07/30/2015 - 10:02 | 6370805 orangegeek
orangegeek's picture

Citizen:  What's 1 + 1?

 

CBO:  What would you like it to be?

Thu, 07/30/2015 - 10:13 | 6370838 starman
starman's picture

BS BS BS BS BS BS BS

 

Thu, 07/30/2015 - 10:13 | 6370839 atlasRocked
atlasRocked's picture

Perfect Time To Destroy Capitalism

Perfect time for the left to allow interest rates to rise, so they can wait for the inevitable reset, and then proclaim…..wait for it……”See we told you capitalism didn’t work, the little guy is getting crushed!!!  Bad capitalists.  Bad. ”   That’s my prediction, July 29, 2015.

Then the communist Bernie Sanders wins the election.  Or whatever Democrat is in the lead.  All they have to do is repeat the lie:  “Raising interest rates ’caused’ the economy to collapse, the mean conservatives knew this all along.”  

Yes we know increasing interest rates will slow the economy.   The leftists lowered rates to SPEED the economy, you'd be faking stupidity if you proclaim you don't know a slowdown will happen when interest rates go back up.

http://www.righttalkwisconsin.com/politics/feds-interest-rate-rise-will-...

Thu, 07/30/2015 - 11:13 | 6371051 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

If the left really wanted to be Machiavellian then they would stave off any kind of rate hike till March of '17, once a Republican is in office.

Thu, 07/30/2015 - 10:28 | 6370878 SMC
SMC's picture

The necrophiliacs will need significantly enhanced seasonal adjustments and data "refining"... to keep putting lipstick on this pig.

Thu, 07/30/2015 - 10:31 | 6370893 surfvin
surfvin's picture

@ atlas rocked that's why we need laissez faire instead of capitalism

Thu, 07/30/2015 - 10:34 | 6370902 bluez
bluez's picture

Whoever said people have some friggin "right" to just be "born" into this world free and clear?

What we really really need is a a BIRTH DEBT. The instant they slap your churly ass and you take that first breath you owe the Federal Reserve $2,000,000.

That way, you know just where you stand on the old monopoly board. Stop the bullshit.

Thu, 07/30/2015 - 11:18 | 6371065 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

http://www.brillig.com/debt_clock/

So being born $56,544.43 in debt doesn't do it for ya?

Thu, 07/30/2015 - 13:07 | 6371538 mademesmile
mademesmile's picture

Dont give them ideas!

Thu, 07/30/2015 - 10:38 | 6370915 Calculus99
Calculus99's picture

Never think that America is 'exceptional', producing a nation of dumbed down and cluess idiots, addicted to smart phones, general celebrity nonsense and being expertly diverted into the latest transgender/gay/racist/feminist twitter storm.

The average Europeon (no spelling mistake) is just as dumb and clueless I can assure you.

The sad fact about all of this, it's just what the Elite's want.  

Thu, 07/30/2015 - 11:22 | 6371071 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

What was that?  I'm sorry,  I was watching Duck Dynasty.  Say again please.

Thu, 07/30/2015 - 11:18 | 6371069 Chuck Knoblauch
Chuck Knoblauch's picture

Worst since 1933.

Thu, 07/30/2015 - 11:42 | 6371155 venturen
venturen's picture

THE EMPEROR HAS NO ECONOMY

Thu, 07/30/2015 - 12:04 | 6371236 pitz
pitz's picture

Yet there's people who delude that the Fed is on verge of raising rates. 

Thu, 07/30/2015 - 12:20 | 6371296 BeerMe
BeerMe's picture

In my own little business world we are slower than the past couple of years.  The big thing I'm noticing is people aren't buying the big ticket items.  Q3 is off to a hot start, so we will see.

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