Dear Extended Family,
Take a look out the window. Call your friends. There is no economic boom taking place anywhere outside of these miraculous statistics. Shocking and surprising, yes. As an indication of the health of the US economy this can only be defined as a boom in vacuum.
Houses in Connecticut outside of Greenwich, the home of the OTC derivative manufacturers, can’t be given away at 50% of the cost to build.
There are many people very close geographically to me in dire economic conditions. Believe me, I know. If close friends of mine have difficulties, to the extent of my capability I have been there for them. Take it from me there are great difficulties out there with no signs of relief.
I have spent a reasonable amount of time in the last two years in China where a boom was forming and then took place. When it was forming, you can see it developing in buildings and business activities. When it was forming you could see the developing statistics that did not boom out of nowhere, but built month upon month. When it was forming, you knew it by what was taking place in front of your eyes.
Nothing of that kind has taken place or is taking place in the West today. Simply stated, today’s revelation of the “Boom in Vacuum” does not pass the intellect test.
- 4th-Quarter GDP "Boom" Sets Stage for Double-Dip
- 2009 Downturn Worst Since Great Depression
- Watch-Out for 2010 Federal Deficit!
- Durable Goods Orders Keep Bottom-Bouncing
Mr. Williams from www.shadowstats.com discusses his views of the upcoming economic conditions today after the release of the fortuitous and miraculous report of a booming GDP. His service is by subscription and highly recommended by me to you as another source for getting the real facts. The following is from his website:
The State of the Real World: No Economic Boom in the United States; No Happy Deficit Outlook.
As discussed in recent writings, the U.S. economy is headed into an intensified downturn/double-dip depression (see Commentary No. 268), with significant risk this year for a massive sell-off in the U.S. dollar and the onset/early stages of a hyperinflation (see Hyperinflation, Commentary No. 263).
Think with your mind, not with your emotions. Do not give up your insurance unless you are absolutely sure there is no need, absolutely sure.
Gold will trade exactly where I have suggested it will. The US dollar is no safe haven. There is no boom building or taking place in the US economic circumstances.
Use your mind, not your emotions.
Respectfully,
Jim
