UNDER THE HOOD: An Extraordinary Look At What's Going On In The US Economy Right Now
Two things are true about the US economy: It is adding jobs and growing.
Economic growth over the last few years has been just so-so, though GDP is still growing about 2% annually.
Meanwhile, the labor market is on fire, with the economy adding more jobs in 2014 than any year since 1999
This is ridiculous.
The US economy is not growing at 2%. It is contracting. Oil prices are collapsing and so are commodity prices. That has never been a sign of an economy growing.
The labor participation rate is the highest it’s been in 40 years.
People on food stamps are at close to 50 million and it’s increasing.
The economy is not growing at 2%. In the first quarter it has grown at a minus .7% in the second quarter at an “estimated” 2.3 %. Add those two together and you get 1.6% or an average of .8%. We do not know how Q3 and Q4 are coming in but they are going to be dismal. But let’s look at Q1 and Q2. A .8% gdp is recession country. How you extrapolate from that that we are growing at 2% is insane.
And then a 2% growth on the GDP is pathetic for the American economy. There is no way it is 2% as of today or that we are adding jobs. So you can throw that out. We are in very big trouble.
And going into the second half it will be even worse.
The Fed is unable to raise interest rates and all the bs about raising rates in September is total bs. It will never happen. The Fed will never raise rates because the economy is so weak it would implode if rates were raised.
Wage growth is zero and on and on.
Brace yourselves because September looks like it is going to be a bloodbath.
That the economy is doing well is complete nonsense.