Posted on 09/10/2024 6:38:54 AM PDT by delta7
Nine of the 12 Federal Reserve districts reported a decline in economic activity in August, up five districts from the July Beige Book report. Our system has warned that we are entering a period of stagflation, where inflation remains high but GDP declines. Now, the Fed is reporting that two-thirds of the US economy is experiencing “flat or declining activity.”
The US economy advanced 3% during the last quarter, leading many to believe that the economy is recovering since Q2 posted a measly 1.4% advancement. Consumer spending, amounting to 70% of GDP, rose 2.9% last quarter as well, but people are spending on essentials.
They fail to calculate TAXES into the equation when producing these reports and then dismiss essentials such as food and shelter as “volatile” aspects that somehow are not factored in the core figures.
Some people have a very hard time understanding that we are in a massive deflationary spiral; they think that rising prices simply means it is inflation and not deflation. Then, they mistake stagflation for deflation and wonder why people are spending more on less. They only see prices, not disposable income, and certainly not economic growth and unemployment.
The latest jobs report revealed that manufacturing is continuing to decline – shedding 24,000 jobs in July alone. On the other hand, the public sector grew by an additional 24,000, but those are 24,000 positions that will not contribute to GDP. Instead, growing government is simply growing the national debt but that figure no longer matters since it has long been unsustainable.
If you really look at it, objectively, interest rates always rise during boom periods, and they decline during recessions and depressions. We are looking at increased inflation into 2028 caused by shortages and war. But you’re looking at declining economic growth, so that ends up being more like the 1970s. The inflation rate will be higher than economic growth and we often see stagflation during times of war. We are beginning to see this come into play on the district level, but soon, it will be undeniable that the US has entered a period of contraction.
That said, Armstrong is the only one to state we entered Recession months ago. Prepare accordingly.
https://www.armstrongeconomics.com/armstrongeconomics101/economics/forecasting-recessions/
After 40 years of stable currency through presidencies of both parties, it's deliberate economic warfare.
If you add everything up....car repossessions, home foreclosures, credit card debt, commercial real estate foreclosures, banks stuck with commercial real estate that won’t re-sell, 12-percent of young men not looking for work, restaurants in California in collapse over wages, condo market collapse in Florida, and people not spending money presently...it’s all built into a 1929-like collapse.
I can see a hundred banks by first quarter 2025, in FDIC-woes.
Recessions are normal, necessary and periodic in market economies. Implementing policies that cause recession and then trying to not let the recession happen doesn’t work very well.
Post of the decade:
“Americans may be holding maybe over $20 trillion in liquid assets in non-US banks as a means of tax avoidance; change our tax laws so bank account interest and capital gains are no longer taxed and the USA would see a liquidity boost that would change the economy almost overnight.”
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This is why we need RADICAL reform to our national taxation system. Americans may be holding maybe over $20 trillion in liquid assets in non-US banks as a means of tax avoidance; change our tax laws so bank account interest and capital gains are no longer taxed and the USA would see a liquidity boost that would change the economy almost overnight.
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Wait ‘til you see the BOOM that would happen if/when the (illegal) 16th A. (as it violates 4th, 5th, 13th & 14th on its face) were abolished.
Course, the Uniparty, & their bases, LOVE ‘em their pilfering of the Treasury for their benefit (govt getting power, both sides of the equation other People’s $).
Whaddaya mean, “it begins”?
We’ve been in a stagflationary financial environment since 2005.
Yes and without QE since Nov 07 we have been in a recession. Our rise in GDP is a function of printed fiat govt spending.
Welcome Back, Carter.
Well played.
Welcome Back, Carter.
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Yes I lived those days, the only difference is we had a strong dollar and no unpayable $ 35 trillion debt….think Carter x 100.
Months ago? It began a couple of years ago.
They are waiting until Spring so they can blame it on Trump.
I live in Illinois and follow the following economic index. The economy is still growing but the growth rate has been declining for the last couple of years. This isn’t encouraging info for Illinoians..
https://igpa.uillinois.edu/in-the-news/august-flash-index-declined-for-the-fourth-straight-month
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