GDP was up 0.6% for the second straight quarter. If you consider population growth we are in a recession. If you consider the phony baloney inflation statistics, then we are in a recession. If you look at consumer confidence and public opinion polling we are in a recession. If you go to your local mall and talk to the store managers you will find that we are in a recession. The only place that we are not in a recession apparently is in the “official world” of Washington DC.
Looking into the GDP report we find further evidence of a contracting economy, recession and the possibility of a looming depression. Sales of final goods fell by 0.2%. People cut back across the board except in areas where they had little or no control such as medical, housing, and utility expenses. Investment in housing, equipment, and non-housing structures are all falling at a noticeable pace. The only positive areas are exports (we are giving away our production on the cheap because of the falling dollar) and defense spending. Inventories also rose and that also “contributes” to GDP. All three of these “winners” really reflect badly on the US economy.
The cycle continues................
