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Some Recovery

Sucker Born Every Minute

Below is a graph from the US Treasury Department. It tracks the rolling 12-month growth rates of taxes received. There are two points to be made:

  • Two of the three categories are down 30%; the other is down about 8%.
  • There is no indication that these figures have stopped going down.

The government is telling us that the recession is over. Forecasts for the 4th quarter GDP run as high as 5%

At best, this is surreal mathematics, probably unsaleable to a sixth grader (in private school). At worst, it is outright duplicity on the part of the government.

Simply put, there can be no recovery without private sector growth. The chart below clearly shows the private sector is not growing but continuing to shrink!

I have maintained in several posts that we are nearing an end point where the economy, government, the currency or a combination of the three occurs. If some of us can see this, surely many inside the government know it. After all, they are supposed to be smarter and certainly have access to better data. Because there are no options or ways out of what must happen, I have likened the government to a cornered, wounded animal that is willing to do ANYTHING to survive. Lying to the public is probably the least harmful thing they can do.

Two posts earlier today dealt with other data published by the government that make no sense, at least with respect to an economic recovery. These are Unemployment and Market Manipulation?

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