Terry KinderDespite all the economic happy talk coming from the Mainstream Media (MSM) and the Obama administration about turning the corner, things look to get worse. Just a few of the challenges ahead of us: deflation, unemployment and falling housing prices.
Benjamin Disraeli, once said, "
There are three kinds of lies: lies, damned lies, and statistics". The media has twisted, bent and shaped economic numbers beyond all recognition.
Even when they get it right you often have to read beyond the headline to get the full story. For example, CNN Money gives a fairly accurate report on the manufacturing index showing continuing, albeit at a slower rate, contraction in the manufacturing sector. However, the headline reads:
Manufacturing index rises more than expected. Just below the headline you get the
bad news, "
Manufacturing sector activity rose slightly in March, inching up for a third month, but the index reading still indicates an ongoing contraction, a purchasing managers' group said Monday."
Despite all of the economic happy talk about "green shoots" being visible in the economy the reality is that amongst the prevailing economic influences now are:
Deflation, which feeds...
Rising unemployment, which feeds further deflation, which when combined with...
Falling real estate prices, causes consumers to reduce spending due to the wealth effect, further feeding deflation and unemployment.
Note: The following chart from Shadow Government Statistics indicates the bull the government shovels at us regarding the true unemployment numbers. When accounting for those who are unemployed, who have given up looking for work, or who are underemployed, real unemployment is approaching at least 16%.
So, while we may have turned a corner on the economy, we slammed right into a wall of economic woe.
