ROSENBERG: Here Are 6 Dark Economic Clouds That Are Parting

Lately, David Rosenberg has adopted a more optimistic tone in his research notes.

"While I wouldn't exactly say that I see silver linings, I would say that some clouds certainly appear to be parting," wrote the normally bearish Rosenberg in this morning's Breakfast With Dave note.

1."...some stabilization of the U.S. data that should prevent further downgrades at least as Q4 GDP consensus call is concerned."
2."...we are moving closer to a deal on the fiscal front. The cliff will likely be avoided but Q1 will still be a steep hill."
3."...China not only managed to successfully guide its economy into a soft landing, there are now signs of renewal in industrial activity."
4."...there are [U.S. housing market] experts who I have a ton of respect for (Michele Meyer at BAML, for one) who sees sustained strength in 2013."
5."Japan just elected a new government that is much more dedicated towards reflation than its predecessor."
6."...we know that the ECB has managed to put a floor in regarding the Euro area crisis which has not suffered a flare-up in a year."

I just about sprayed coffee on my keyboard and monitor!

I'm not sure what MSM / TBTF bank / WEE (Washington Economic Establishment) outfit fuels this hack's engine ... but ...

U.S. indicators are rigged to hide inflation, drop COLAs, downplay deficit spending, and accomplish lots of other socialistic objectives. Real economic indicators are falling (see John Williams at Shadow Statistics); many reputable economists argue convincing that we have been in a recession for the past two quarters (at a minimum); there has been no recovery since the 2008 financial fiasco; Bernanke is printing $85 billion per month in QE4 (to infinity) -- because almost nobody wants the worthless paper; the U.S. debt load is at 120-200 trillion on a GAAP basis and cannot be amortized no matter how much taxes are raised, the economy grows and government spending is actually cut, etc. ... lots of dark clouds on the horizon ... everywhere.
There is no "meaningful" fiscal deal, and there never will be one. Boo Hoo Boner may reach some sort of agreement with the Rats, but spending will soar under every "proposed" agreement. Both parties are merely kicking the can down the road until the dollar ultimately collapses, probably in a couple of years or so.
China has cooked their books even more than the U.S. has. Claims of a Chinese turnaround are widely dismissed among knowledgeable sources. Even if they have reversed their central planning debacles, who will buy Chinese exports ... the broke U.S. consumer, the broke Japanese consumer, the broke European consumer, or the third world peasant?
The U.S. housing market is bottom bouncing at best. The Fed is printing 45 billion per month to prevent more banker default and housing market collapse. A huge number of homes are in default but have yet to hit the market ... and a huge number of homes have negative equity. This Congress/Fed induced bubble has yet to fully pop.
The new Japanese government is leftist and committed to public works and money printing ... in fact, they have already been forced to print their debt service. Their last round of "quantitative easing" produced no discernible economic benefits, and they have no other viable stimulus options left. The yen is in a nose dive. Many believe their economy will completely collapse in the near future.
The euro crisis is far from over. Greece is nearing civil war; Spain is suffering an almost total economic collapse; Portugal, Ireland, Cyprus and Italy are on the brink; the Germans are losing patience (and slowly going broke); there have been several defaults (although they are not called that in order to stave off derivative triggers ... and lots more defaults) in recent months.

A few weeks ago, the economist Gary North noted that the Broadway play Peter Pan had a scene where the audience was asked to clap in order to save the life of a fairy named Tinkerbell. He then argued that people like the clown that wrote this "light at the end of the tunnel" article should start to clap right now ... because that's about all that's left to save their fairy tale analysis.

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