Spending Has Collapsed, the Economy Is Next
July 29th, 2011
We’ve been warning about it since the beginning of this crisis – that consumers are simply not interested in spending money they don’t have. In the first quarter of 2011 the government attempted to convince us that the economy was growing at a slow, but steady, rate of 1.8%. This was used as evidence the economic recovery had taken hold.
President Obama and his administration specifically told us that a depression had been avoided:
We can safely say that we are no longer facing the potential collapse of our financial system and we’ve avoided the depression many feared.
President Barrack Obama – December 9, 2009
But today’s growth domestic product revisions suggest otherwise.
That 1.8% that convinced the average uninformed American economic activity had increased was nothing but a fabrication – a bold faced lie – and that’s official. The government revised that number to 0.4% – a significant difference. They were only off by about 75%.
Today, the government released it’s second quarter GDP numbers, and as was predicted in many alternative media circles, it’s a clear indication that things are turning for the worse. Karl Denninger weighs in: