Posted on 09/09/2008 8:43:45 PM PDT by Christopher Lincoln
In recent months, investors have been unjustly chastised for their lack of consistency. In truth, they have an unblemished record of drawing the wrong conclusions. Last week’s 2nd quarter GDP report provides the freshest evidence of market cluelessness....
Without raising an eyebrow on Wall Street or in the press, the GDP deflator, used in the report to downwardly adjust GDP to account for inflation, was shown at just 1.2% annualized.... the lowest deflator in ten years. In other words, to arrive at a 3.3% growth rate, the government assumed that inflation is running at a ten-year low! In contrast, the latest reading on consumer prices (CPI) in the second quarter shows year-on-year inflation running at a 5.6% rate, a seventeen-year high! In fact, for the second quarter, the same time period measured by the GDP deflator, prices actually rose at an even faster pace of 8.0% annualized. How can it be that inflation is simultaneously running at a seventeen-year high and a ten-year low?
(Excerpt) Read more at gold-eagle.com ...
Which part?
Inflation is back.
8-9% for three or four years, that’s all I ask.
Inflation has been “back” since Bush announced “devaluation” in, I believe, 2002.
Don’t worry about it....Buy the physical silver ans short the paper!... Easy money now...and later!...*W*
Schiff is funny. He always starts off very earnestly, but eventually he starts to melt down and sound hysterical. By the end of his articles or appearances, I’m always hearing the same song in my head...
“There coming to take me away haha—hoho-heehee...”
The economy is pretty much in a holding pattern until after the election. There is a reason not many new jobs are being created to replace the ones lost. Managers are holding things close until they know what kind of economic environment they must navigate. This year especially so since the One has promised everyone, except conservatives, a worker’s utopia. Who knows what the tax implications would be like if he had a fili-proof senate. Nightmare scenario for sure, but the possibility must be recognized as a prudent manager/CEO.
the Deets
So they publish a solid growth. Economy is also psychology. The ugly “r” word would fear consumers and let to a even bigger negative growth.
You should take a look at the GDP measurement of the 2 quarter and what is really funny is the published huge profit growth of financial companies. That´s really funny and a good joke. We should all buy financial stocks if we believe in these numbers but i would not do this. LOL
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