Unnamed economists are predicting a massive jump in the GDP next quarter, as echoed throughout the MSM lately, flying in the face of actual data which says something very, very different. Just yesterday, the MSM and a national relator group announced that housing was up around 5%. What they failed to tell you was that number only applies to houses worth more than 1 million dollars. Houses worth less than $500,000 barely budged. The truth lately is something very different than what is actually happening and the economic future has reached epidemic proportions that smells of desperation rather than what is actually occurring. They must see the end coming and trying everything they can to convince themselves and others that all is well when it really isn't.
The latest GDP for Q1 has been revised even lower to a whopping negative 2.9%, rather than the anemic .1% gain they tried to lie to us about. Much like the drop in Q4 for last year was blamed on the government shut down, this one has been blamed on cold air. Nevermind the fact that the rich spent money in droves during that same arctic blast, it has to be the economy of course. If one takes out cars sales (which is doing massive sub-prime loans with rising costs) and gas, retail died last month. More and more people are using their credit cards, which contrary to popular belief, is not a good sign. It means people are tapped out again and relying on high rate credit to survive.
Because we did NOTHING to fix any of the problems caused by the banks, the crows are coming home to roost. Companies, rather than raise salaries, used their wealth to buy back their own stock, causing the debt bubble we can see on front of ours eyes. Because the middle class was subjected to austerity rather than a raise, tax coffers fell even further, buying all but stopped and the economy looks like to be on life support.
Check out the graph below. The last time the GDP fell this far, the recession happened. What do you think will happen this time? Something probably far worse, as the government and corporations have nothing to prepare for the end times.
When selling starts to occur, it's going to be a stampede for the door, just like 2008. The government will have no easy fix as they have already done everything they can do, which was more or less nothing, and have no options for a second round.
The main reason for this is that the average American is out of money. No one got a raise, inflation is going though the roof, and everyone is getting hit from every angle. Our troops I just found out are paying an arm and a leg for their dental insurance, with things like root canals only being paid for once every five years. If you have more than one, the costs are triple what the average consumer pays. Two of my military friends let me know about that gem these past few days.
Because no one has any money, consumer growth has ended. Retail sales for anyone not in the upper end of the spectrum collapsed last month. Income is as low as it was in 1967 with 2014 prices. I went grocery shopping yesterday and paid double what I used to pay for everything. Inflation is hovering around 11% right now, rather than the 2% Janet Yellen lies to us about. When the economy starts to nose dive, hyperinflation is going to drive this country over the edge.
A collapse may be coming, one where money is no longer worth anything. If the derivative market goes under, and chances are very good it will at some point, the entire world economy goes poof. And then what? If you've ever seen a disaster movie, this will be like one of those. Anarchy will rule, people will die and not even the government will be able to stop it as they won't have the power to do anything about it. Soldiers will abandon their posts when the paychecks stop and their families are in real danger. It is the same scenario seen after Katrina and there is no chance of this being any different.
Contrary to what the MSM keeps telling is, orders from companies in May flat-lined. Durable goods fell to 1%, a historic low and a bad sign for 2014. Companies see that no one is buying and are ordering less goods, which is the opposite we keep being told. How long can we be lied to before we do something about it?
The point of this is that the end of the economy seems to be coming and few are prepared for the aftermath. As long as you keep voting in people like Charles Rangel (REALLY NY VOTERS?) and just about anyone in the GOP, this will keep getting worse and worse. Just remember, a lot of you voted for this.