Understand that the entire reason why the talking-heads at the U.S. Federal Reserve have been talking (more and more) about more and more money-printing is that for nearly six months now we have seen a steady of stream of deteriorating numbers out of the U.S. economy – with most of the bad news being a “surprise” (according to the propaganda machine itself).
What this means as a matter of both logic and arithmetic is that there is only possible direction in which U.S. GDP calculations can be revised: lower. So when we see in today’s propaganda that U.S. Q2 GDP has been revised upward instead of downward, our reaction is automatic: a bigger lie.
This is no surprise. Recall in a recent commentary how the U.S. government is pretending there is literally “zero inflation” in the U.S. at this moment (while its corn crop burns, and Asia discusses the “food-price crisis”). As I observed then, the U.S. government has started telling even larger lies about inflation – likely in preparation for the truly gigantic Lies it will need to tell once hyperinflation commences.
As I’ve explained on many previous occasions, the easiest way to exaggerate GDP upward is to understate inflation, since every point that inflation is understated can be directly added to pad the GDP number. Thus with the U.S. government having advertised a much bigger inflation lie, we would expect its lies about GDP to also automatically grow.
The only thing “growing” in the U.S. (other than its Prison Economy) are the lies.
Since most economic statistics are expressed in dollar amounts, with any/all economic statistics which are supposedly “adjusted for inflation”; we will now see much bigger lies – as we see with a GDP number which (amazingly) went up instead of down.
As an aside, lying about inflation is also an excellent way to perpetrate economic rape on Seniors, and everyone else receiving (supposedly) “inflation-adjusted” payments, since the bigger the inflation lie, the more they fall behind in real dollars. Previously, U.S. senior citizens have been seeing their Social Security cheques shrinking at a rate of 6 – 8% per year (in real dollars). With the new-and-improved lying about inflation in the U.S., Seniors can now expect that economic rape to increase to 10+% per year.
For Canadian readers (and Canadian Seniors) don’t think you’re escaping punishment here. Canada’s government lies about inflation almost as much as the U.S. With the U.S. now “raising the bar” with its new inflation lie, Canadians can expect the dutiful Canadian government to follow suit – as failing to mirror U.S. economic lies would cause questions to be asked (like how could inflation be 10% in Canada but only 5% in the U.S.?).
As I noted in yesterday’s commentary, China’s government reacts proactively to its own domstic economic issues – taking strong, immediate measures to fix things when it sees problems. Over here in North America the approach to all economic problems is to simply tell bigger lies, and shovel some more free money into the vaults of our Big Banks.
U.S. Grew Faster Than First Estimated In Second Quarter
The U.S. economy expanded more than previously estimated in the second quarter, reflecting an improvement in the trade deficit and a pickup in household spending on utilities.
Gross domestic product climbed at a 1.7 percent annual rate from April through June, up from an initial estimate of 1.5 percent…