Monday, December 23, 2013

Slow Saturday Special: Same Old Horse $hit

"The refined estimate is based on “more complete source data,” the department said, that showed personal consumption and business investment to be higher than previously thought. Those figures came in “dramatically better than initially expected after an unusually large series of surprises,” said Morgan Stanley economists in a note to clients, calling the government release a generally “strong report.” 

You smell something because I sure do?

"Revision shows US economy growing at fastest rate since 2011" by Annie Lowrey |  New York Times, December 21, 2013

WASHINGTON — The US economy grew at a surprisingly robust 4.1 percent annual pace in the third quarter, the Commerce Department said Friday. That is the strongest growth in nearly two years and only the third time the economy has expanded that quickly since 2006.

It is the latest evidence that the generally sluggish recovery is gaining strength, although economists noted that the underlying rate of growth remains at a trot, not a gallop....

And thus you know how I found the title of this post. 

Related: 'Twas the Week Before Chri$tmas.... 

Watch out for the reindeer dung.

The report pushed stocks higher Friday, capping off Wall Street’s best week in three months....

Oh, well, then God Ble$$ us, everyone.

With stronger growth, the job market is improving, but earnings and employment remain far from healthy levels, economists think. The unemployment rate fell to 7 percent in November from 7.8 percent a year earlier. But that improvement is in no small part because of workers leaving the labor force, and many working households are still struggling with stagnant incomes.

Still, the Commerce Department data shows more evidence of faster and broad-based growth that might lead to a healthier labor market — and more solid growth — in 2014.

Those are not good words for a report, at least that is what they told me in college.

The refined estimate is based on “more complete source data,” the department said, that showed personal consumption and business investment to be higher than previously thought. Those figures came in “dramatically better than initially expected after an unusually large series of surprises,” said Morgan Stanley economists in a note to clients, calling the government release a generally “strong report.”

Translation: what we have here is a steaming, swirling stinker.

Economists had expected the final estimate of growth to be unchanged from the earlier 3.6 percent. But the data showed that consumers have stepped up their spending on health care, houses, and cars as the strengthening recovery has led businesses to hire and rising home values have improved household balance sheets.

The Commerce Department increased its estimate of consumer spending.....

It's called lying, folks.

The economy’s general strength has spurred the Federal Reserve to begin to unwind its bond-buying program, cutting its monthly purchases of Treasury and mortgage-backed debt....

All this good news is an excuse so the banker's can stop printing money and wrecking the value of the dollar.

The third-quarter growth came from a broad range of other sources: personal consumption, exports, investment in new factories and houses, state and local government spending, and a rise in business inventories.

Even as the malls are empty.



"Consumer prices stay nearly flat" by Josh Boak |  Associated Press, December 18, 2013

WASHINGTON — US consumer prices stayed flat in November, held down by falling gas prices. Inflation remains low across the broader economy, giving the Federal Reserve latitude to continue its extraordinary stimulus program....

They are wrapping it up though?

High unemployment and small wage increases have kept consumers from ramping up spending, making it difficult for businesses to raise prices since the Great Recession ended.

What crap! What lame-a$$ crap as a excuse and an outright lie on prices!

Lower gasoline costs have kept inflation extremely weak. Gas prices nationwide are averaging just $3.23 a gallon, according to AAA’s Daily Fuel Gauge Report.

Then why is the lowest it ever got here $3.43?

The November decline in energy costs was offset by higher prices for home rentals, hotels, airfare, and restaurant meals. Grocery prices edged up 0.1 percent last month.

But it was difficult for bu$ine$$ to do that, or give you less for more.



"Stronger corporate profits this year might also enable the creation of higher-paying jobs. More than half the jobs that have been added in the past six months have come from four low-wage industries: retail; hotels, restaurants and entertainment; temp jobs; and home health care workers. Unemployment remains high."

See: Corporations Sitting on $1.8 Trillion in Cold Hard Cash

Banks will let you borrow some:

"Consumer borrowing rose $18.2b in October, but slow job growth and small wage gains have made many Americans more reluctant to charge goods and services. But at the same time, the weak economy is persuading more people to go back to school to learn new skills. The Federal Reserve Bank of New York quarterly report on consumer credit shows student loan debt has been the biggest driver of borrowing since the recession officially ended in June 2009. Analysts are hoping that consumers will step up spending and help drive faster economic growth." 

You kids have been en$laved for the rest of your lives. 

Time to go to work. Hope the degree was worth it:

"US service sector firms grew in November at the weakest pace since June, evidence that cautious spending by consumers and businesses may be slowing growth, and a gauge of hiring fell to the lowest level since May. That’s a sign job gains may have slowed in November. The government will report last month’s hiring figures on Friday. Economists weren’t overly concerned by the declines. They noted that the level of the index still points to steady growth." 

We have been told this same $hit for f***ing years now!

"The US trade deficit fell in October, helped by America’s energy boom that lifted overall exports to an all-time high. The United States is benefiting from an energy revival, which has lessened its dependence on foreign oil. A smaller trade deficit can boost economic growth. It typically shows that American companies are earning more from sales overseas while US consumers are buying fewer products from their foreign competitors." 

And everyone else, for that matter, meaning this economy is $hit.

"A private survey shows US businesses last month added the most jobs in a year, powered by big gains in manufacturing and constructionStill, the figure suggests that hiring remained healthy in November after picking up in the prior three months." 

But, still, yet, SIGH!


Job openings at a five-year high
Inventory report adds to optimism
Small But Thriving
Factory output increases in quarter
US worker output rises at best pace in 4 years

Good slaves!

Also seeSunday Globe Specials: The Great American Economic Recovery

Didn't make it here:

"The Massachusetts unemployment rate in November surpassed the nation’s for the first time in more than five years, suggesting weaker conditions here even as the national economic recovery accelerates. Economists said automatic federal budget cuts, known as sequestration, have taken a disproportionate toll [and] shows how the state’s economy is influenced by larger political forces and the global marketplace. Yet, the state’s situation is far from dire, [and] the data from both surveys are subject to regular, and sometimes significant, revision. 

Translation: this is all horse shit!

The employers survey has shown steady job gains for the last four months, Clayton-Matthews added. Other indicators, such as strong home sales and rising incomes, also suggest Massachusetts’ economy is doing better than the unemployment rate would indicate, he said. In more normal times, Clayton-Matthews said, Massachusetts’ unemployment rate tends to hover about seven-tenths of a percentage point below the nation’s." 

That is $hamele$$, folks.

I knew I was smelling something familiar!

"Growing US income gap spurs worry; People, economy both take a hit" by Christopher S. Rugaber |  Associated Press, December 18, 2013

WASHINGTON — The growing gap between the richest Americans and everyone else isn’t bad just for individuals.

It's funny!

It’s hurting the US economy.


So says a majority of more than three dozen economists surveyed last week by the Associated Press. Their concerns tap into a debate that’s intensified as middle-class pay has stagnated while wealthier households have thrived.

A key source of the economists’ concern: Higher pay and outsize stock market gains are flowing mainly to affluent Americans. Yet these households spend less of their money than do low- and middle-income consumers who make up most of the population but whose pay is barely rising.

Like we all didn't already know this.

‘‘What you want is a broader spending base,’’ says Scott Brown, chief economist at Raymond James, a financial advisory firm. ‘‘You want more people spending money.’’

Who is "you?"

Spending by wealthier Americans, given the weight of their dollars, does help drive the economy. But analysts say the economy would be better able to sustain its growth if the riches were more evenly dispersed. For one thing, a plunge in stock prices typically leads wealthier Americans to cut sharply back on their spending....

That's communist type of talk!

A wide gap in pay limits the ability of poorer and middle-income Americans to improve their living standards, the economists say. About 80 percent of stock market wealth is held by the richest 10 percent of Americans. That means the stock market’s outsize gains this year have mostly benefited the already affluent.

Those trends have fueled an escalating political debate. In a speech this month, President Obama called income inequality ‘‘the defining challenge of our time.’’ 


See: Sunday Globe Special: Broken City Contradiction 

Why didn't Democrats raise taxes on the rich when they had the filibuster-proof majority? Then these budget problems could have been avoided and inequality alleviated, right? Instead all we got was a crappy corporate health law.


"The protests are getting high-powered support from the White House."  

Have they put out a proposal or filed a bill with Congress? 

Also see: Fast Food Workers Co$ting Taxpayers

Makes you wanna puke.

Obama also called for an increase in the federal minimum wage, now $7.25. Republican leaders in the House oppose an increase, arguing that it would slow hiring.

Several states are acting on their own. California, Connecticut, and Rhode Island raised their minimum wages this year.

Income inequality has steadily worsened in recent decades, according to government data and academic studies.

That's by DE$IGN, folks!

The most recent census figures show that the average income for the wealthiest 5 percent of US households, adjusted for inflation, has surged 17 percent in the past 20 years. By contrast, average income for the middle 20 percent of households has risen less than 5 percent.

The AP survey collected the views of private, corporate, and academic economists on a range of issues....


"What will Fed do? It’s still a close call" by Martin Crutsinger |  Associated Press, December 18, 2013

WASHINGTON — That the Fed is even considering slowing its stimulus is testament to the economy’s improvement. Hiring has been robust for four straight months. Unemployment is at a five-year low of 7 percent. Factory output is up. Consumers are spending more. Auto sales haven’t been better since the recession ended 4½ years ago.

What’s more, the stock market is near record highs. Inflation remains below the Fed’s target rate. And the House has passed a budget plan that seems likely to avert another government shutdown.

Yup, all of a $udden Congre$$ is cooperating!

‘‘It really feels like the economy has finally hit escape velocity,’’ said Mark Zandi, chief economist at Moody’s Analytics.... 


I gotta get out of the Globe, folks.


The new Jew running the Fed is going to be more ‘‘dovish,’’ as if it made a difference. The problem is not the person leading the private central bank ponzi scheme; the problem is the $y$tem it$elf. 

"Fed to ease off stimulus with $10b cut" by Binyamin Appelbaum |  New York Times, December 19, 2013

WASHINGTON — The Federal Reserve is struggling to calibrate its stimulus campaign in an environment of steady but mediocre growth. The unemployment rate has declined over the past year, reaching 7 percent in November. But that is still a high rate by historical standards, and other measures of the labor market look even worse. Wages are rising slowly, and the share of adults with jobs has not climbed since the recession.

A variety of indicators suggest the US economy may now be growing more quickly than analysts predicted, and Fed officials anticipate somewhat faster growth in the coming year. But the persistence of low inflation indicates the economy is operating well below capacity....

They never stop the $hit-shoveling does the whoreporate pre$$.

Over the past year, the Fed has bought more than $1 trillion in Treasury and mortgage-backed securities in its effort to encourage job creation.

It didn't create jobs, but it did boost bank's bottom lines and the stock market(?)!!

Fed officials say the purchases have modestly reduced a range of borrowing costs, contributing, for example, to a rise in auto sales and an improving housing market.


"Americans ramped up purchases of new homes in October after three months of soft sales, evidence that the housing recovery is improving fitfullyBut the increase came after sales had fallen 6.6 percent in September, and sales in August and July were revised lower.... US home builders’ confidence bounced back strongly this month, a sign that construction and industry hiring may pick up."

Yeah, it's "improving." 

They say the program has also helped to revive an appetite for taking risks, driving up stock prices.

Making rich people even wealthier, which is what the $y$tem is meant to do.

“The ripple effects go through the economy and bring benefits to, I would say, all Americans,” Yellen said at her confirmation hearing.

Yeah, trickle down is now a dirty term.

But independent analysts have struggled to isolate the effects of the program. 

They handed money to banks who put it in their pockets.

Some Fed officials, and outside analysts including some at the International Monetary Fund, see evidence that the impact of the bond buying has diminished as markets have returned to normalcy. 

They call this normal?

Officials are increasingly concerned as well about the potential consequences, including the disruption of financial markets and the difficulty of unwinding the program.

That's why it will never end, that and the fact that no one is buying US Treasuries anymore.

Fed officials also are frustrated that the bond-buying program has become a source of financial instability as investors hang on every shift in policy....

They set this whole $y$tem up and now they are complaining!

Then the article says something about a Mr. Stanley Fischer, whom the White House plans to nominate as Yellen’s vice chairman. It says nothing about him being the former director of the Bank of Israel and more "hawkish." 

So jwhose intere$ts you think he will be looking out for?

Now maybe I missed something in one of the unread Globes, so I might double and triple check them. Then again, I might not.