14 votes

An Astonishing and Persistent Denial of Economic Reality

The 1st Quarter 2014 GDP Number

15:27-18:20 The first quarter GDP was up just 0.1% in the first quarter and the weather was blamed for the poor economic performance. Cold weather can't derail an entire economy. Recent tornados in the south may also be blamed for a lack of 2nd quarter GDP growth, although Keynesians might argue that tornados might lead to economic growth as homes will need to be rebuilt. Discussion of the Fed and media spin on the poor numbers:

From CNBC:

"Yet the Fed statement did not reflect substantial concerns and in fact agreed with consensus from economists who believe the slowdown will be short-lived and growth will accelerate."

From the FOMC statement:

"Information received since the Federal Open Market Committee met in March indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions."

Even though initial jobless claims are up, home sales are down, twenty percent of homes have no one employed , homeownership rates are down, there is a rise in food stamp usage, mortgage applications are down and new home construction is down, the media persists on peddling an economic "recovery" story.

From Reuters:

"U.S. consumer spending recorded its largest increase in more than four and a half years in March, cementing views the economy ended a dismal first-quarter on solid footing."

Podcast Notes:
http://smaulgld.com/astonishing-persistent-denial-economic-r...


http://youtu.be/xtvKeivGjrs

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More Economic Denial from Janet Yellen Today

Case in point: Yellen today

The economy paused in Q1 but clearer skies ahead!

“I see that pause as mostly reflecting transitory factors, including the effects of the unusually cold and snowy winter weather,”

“With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the current quarter.”

http://www.forbes.com/sites/samanthasharf/2014/05/07/yellen-...

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Weather is a hot topic here on the DP as well...

Along with geoengineering, weather modification, HAARP, HAMP, and aerosol spraying of the skies. Lotsa "debunker" trolls showing up, too. Funny coincidence, right?

Gasoline/Petroleum price watch

I haven't been researching gasoline prices nationwide. But at least locally based on where I live, things are already looking like spiralling out of control. It's only early May, we aren't even into heavy driving season of summer yet.

By comparison, @ the cheapest local gasoline pump I buy at, I was shocked with the lowest cash prices of $4.14 per gallon for NON-PREMIUM unleaded. The coming summer is expected to be very severe due to prolonged California (Western) drought. That coupled with bad unemployment situation could possibly bring "summer driving season" crashing down to the ground. I cannot possibly imagine what these rising gasoline prices are going to do to food prices. And I'm referring to quality food products - true organic dairy, organic/farmer's market fruits/vegetables etc.

Looking at the rising gasoline prices & war games in Ukraine, messing with Russia - I feel we're all being intentionally set up for the financial disaster. These are exactly the dangers of Zombie apocalypse which Ron Paul worked so hard for most of his life warning us about.

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71

in light of what you just reported HOW

is there a recovery? They define recovery how they wish.
Rising stock and real estate prices.

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No recovery

There is no recovery. There are no more real markets. All there are, are frauds & crimes committed on a massive scale with digital manipulations & fake paper assets. Unemployment numbers, GDP figures, LIBOR interest rates, Forex rates, commodity prices, everything is rigged.

David Einhorn has already warned about & opted out of fraudulent tech stock valuations. Whatever gazillions Facebook paid for Whatsapp is a total joke. It's making mockery of numbers and raising fundamental question of where the real purchasing power of Dollar is headed. Whatsapp with that? More important than this, is the currency swap mechanism for commodities trading that Russia & China have already put together. They can make SWIFT payment system irrelevant on an international stage.

Richard Russell is almost 90 years old. He's a true veteran & one of very few living who remembers what the 1st depression was really like. He has told all his clients to opt out of fraudulent stock market, preserve capital by converting into physical commodities that they can take possession of & head for the higher grounds.

Access to high quality water, high quality organic farming lands & foods etc. THOSE are the most vital issues that are going matter during upcoming turmoil. I personally spent 23+ years of my life in high technology software world in Silicon Valley, solving non-trivial problems of enterprise market. But at this point, I'm least concerned about what algorithms Facebook, Whatsapp, Oracle, Google, Apple or whoever are implementing or where their stocks are headed. As far as I'm concerned, very little of their work is going towards use cases that truly matter for helping humanity. These are crazy times most people will reflect back upon 20 years from now, like the madness which the declining Roman civilization participated in.

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71

Economic deterioration would be more appropriate

The "stimulus package" of 2008 soon grew limp from economic dysfunction.
The "green shoots" of 2009 withered like weeds.
The "economic turnaround" of 2010 turned out to be a dead end.
The "economic recovery," spurred by quantitative easing in 2011, 2012 and 2013, was as effective as shock therapy on a dead man.
The economic analysts and financial gurus spewing the recovery nonsense either are fools or liars or both.

2010 was "recovery summer"

QE is easy to quick they've done it 4 times in five year.

Here is spin:

Saw a PBS documentary on Woodrow Wilson they listed one of his "achivements":

"passing the Federal Reserve act so that small business owners would have access to loans!"

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