'it all together paints a picture of a very unhealthy if not outright dying economy'

[marmar]

Sucking Spoilt Milk From A Bloated Dead Sow
By Raúl Ilargi Meijer, editor-in-chief of The Automatic Earth


With US GDP growth ‘officially’ back where it belongs, in the Arctic zone close to freezing on the surface but much worse in real life, for reasons both Albert Edwards and Ambrose Evans-Pritchard (not exactly a pair of Siamese twins) remarked this week; that is, excluding the “biggest inventory build in history, the economy contracted sharply”, it’s time for everyone to at long last change the angle from which they view the world, if not the color of their glasses.

But ‘everyone’ will resist, refuse and refute that change, leaving precious few people with an accurate picture of the – economic – world. Still, for you it’s beneficial to acknowledge that very little of what you read holds much, if any, truth or value. This is true when it comes to politics, geopolitics and economics. That is, the US is not a democracy, it is not the supreme leader of the world, and the American economy is not in recovery.

Declining business investment, a record inventory build and extreme borrowing to hold share prices above water through buybacks, it all together paints a picture of a very unhealthy if not outright dying economy, and certainly not one in which anything at all is recovering. But how are you supposed to know?

The entire financial media should change its angle of view, away from the recovery meme (or myth), but the media won’t because the absurd one-dimensional focus on that perpetuated myth is the only thing that makes the present mess somewhat bearable, palatable and, more importantly, marketable, to the general public. ...................(more)

http://www.nakedcapitalism.com/2015/05/ilargi-sucking-spoilt-milk-bloated-dead-sow.html

[Romeo.lima333]

1. 2nd one today are you trying to scare us?

oops sorry same one posted in two different forums - pretty dire stuff

[marmar]

2. Yep. I posted it in GD, and in economy.

[Romeo.lima333]

3. The entire apparatus is geared towards selling you a doctored image of the world you live in,

The entire apparatus is geared towards selling you a doctored image of the world you live in, instead of presenting you with reality. Not because as Jack Nicholson said “You can’t handle the truth”, but because you knowing the truth is not in the interest of those who run governments, nations and supranational organizations. You’re caught in a trap somewhere between Goebbels and Orwell, and it takes a lot of energy to escape it, energy you will be inclined and tempted to instead use to improve your position inside the trap. Just like everyone else does. We are social animals, we are disposed to do as those around us do.

[golfguru]

4. #1 cause of economy in funk is....imo

ZIRP. Consider that bond market has bigger value than stock market, Apple included! Then you add all the seniors who have tried like hell to build some retirement savings in a long lifetime.

Well, bonds are paying next to nothing, CD's are paying next to nothing, saving accounts are paying next to nothing.

All that interest going into economy as spending has vanished.
It has obliterated demand for discretionary goods & services.

I have never seen so many openings at Dentist's offices! I can now get an appointment within a week, easy!

The FED wrongly thinks ZIRP (zero interest rate policy) will create business expansion. That is putting cart before the horse. First you to create income, and demand will follow. Why would a business expand when demand is tepid.