by [email protected] (Karl Denninger)
Led by deterioration in production- and employment-related indicators, the Chicago Fed National Activity Index declined to –0.63 in June, down from +0.31 in May. Three of the four broad categories of indicators that make up the index made negative contributions in June, while the sales, orders, and inventories category made the lone positive contribution.
Well now let’s see… we add this to the ECRI leading index (which is now recording a -10% number) and you have yet more indications of the dreaded “double dip.”
Or is it?
We simply never left recession, and now the Federal Government’s attempts to prop up the economy with a full 11% of GDP in debt-based-spending (just like you might with your credit card if you lost your job!) are failing too.
The government should have left well-enough alone and forced the insolvent to take their lumps in 2007. We’d be done with this by now.
Instead, we’ve dug an even bigger hole, and one that is now threatening to collapse on us.
Just as it did in 1932 – or 1937.
(Heh wait, didn’t FDR fix it all? If so, how in the hell did we get a Depression inside a Depression? Yes, we really did… go look it up.)