Exactly it is all sleight of hand and will not be hidden forever. Keeping interest rates lower than inflation will cause mass exodus from U.S. dollars and already has hence the depreciation of the dollar which is even worse in foreign countries than here. If rates are not raised it will lead to hyper-inflation as everyone dumps the dollar in favor of something that will hold it's value. Stimulus checks and loans from foreign countries only go so far. In the future this period of time will be seen as the beginning of the end leading to a depression or hyper-inflation as a way to default on all debts.
Slider, you speak for a lot of people on here, and what you're saying is nothing new. Here's a question, and I guess anyone who has the same sentiment could respond too: what good does it do to speak about an economy like that that is still growing, albeit slowly? Don't you think you're just talking yourself into bad times? It seems if you keep saying there's a recession, when I guarantee it will never pass muster as one, that you'll be right eventually when we do have one. Michigan is the only state with a declining economy, and that's all on the crap Detroit makes, but this doesn't speak for the shift into an even more service based economy.
The Fed will take "AAA" paper and GSE paper in exchange for treasuries. The Fed opened the window for Fannie and Freddie. Who here needs help connecting the dots? By underreporting inflation via the use of hedonics and substitution, you in effect overstate real GDP. Its a scam. The birth/death model is a joke. Zimbabwe wouldn't have a problem with inflation if it had America's Bureau of Labor and Statistics. Gold star to all those who heard Bernanke about 2 weeks ago talk about the cost of healthcare in the future. Look for another Boskin type commission to fiddle with the CPI.
If it's not the BLS, you're listening to the wrong person and a flawed analysis with an agenda. The BLS did say 5+%.
The birth/death model says the Leisure & Hospitality sector has been adding jobs at a similar rate of the prior year yet Marriot says another thing with hiring freezes and mandatory vacations for workers. Gee I wonder which one reflects reality. Better yet, the financial and construction fields are more bizzare in comparison.
LOL what mess? For you or for them? You make a simplistic mistake that their goals are aligned with the masses.
Some people on ET need to get real. If they don't yet get around in intelligent circles, at least they should surface from their neanderthal melodrama expecting USA or world disaster. Isn't here now and isn't going happen. There is no gigantic 'black swan' economic catastrophy, now or in the next few years.
Not so. REAL GDP = Nominal GDP - Inflation. Inflation numbers are total bogus. Way higher. That means 1% GDP growth is really negative 2 to 3% GDP after real inflation is factored. Thats why it is Smoke and Mirrors. Rigged Statistics to jaw-bone a faltering economy. Imagine how much business investment and consumption would drop if BLS came out with 9% inflation and -2.5% GDP. Oh boy. Deserted malls and wallets locked tight to weather the storm. The last 2-3% of a GDP curve is mass psychology. This is where rigged stats come into play.