* This morning we got the first look at Q2 GDP * Q1 had been reported most recently at -.2 * Everybody was looking for an upward revision due to the double seasonal adjustments * The revision brought Q1 into the black, but only by .6 * Q2 expectation was 2.9; instead it came in at 2.3 * I had mentioned that at best, Q2 GDP would be in the low 2's, which is what we have * After revisions, however, we could end up at below 2 for Q2 * Wall Street and the Fed were too optimistic about Q2 * Now previous GDP years have been revised, with the net effect of lowering U.S. GDP growth almost 1 percentage point for the past three years * After revisions, the average growth rate is 2% per year * 2015 Q1 & Q2 average GDP growth rate is just 1.45% * The worst first half of the "recovery" * What is the point of raising rates now, when the economy is at its weakest? * The Fed is still waiting to see improvements in the labor market * Unemployment is low * The Fed is waiting to see increases in wage growth and in labor force participation * It is unlikely that there will be more part-time workers finding full time jobs * The Fed is still putting on a show, pretending that a rate hike will be appropriats * This recovery is the weakest recovery in the modern era, since WWII * We have had the most Keynesian monetary stimulus ever * The Keynesians will not consider that their policies are an economic sedative * Even though this is the biggest economic ever, the Keynesians still want more * Redbook Year-Over-Year Same Store Sales rose by just 1% * Last year, the year-over-year growth was 3% * Pundits blame poor retail sales on "hot weather" * People aren't shopping because they aren't making enough money * The U.S. home ownership rate fell to a new low of 63.4% * The result of government efforts to increase home ownership is the the lowest rate since 1967 * Rental prices are at an all time record high * July Consumer Confidence plunged from 99.8 in June to 90.9 in July * As evidence continues to pour in that the U.S. economy is weaker than the government and the press report, the dollar remains high * Gold is not getting a rally from the economic news * Shorting of gold by speculators is a dangerous game, as there is no indication that the price of gold overvalued * It's not the traders who are buying gold. It's the strong, long-term holders that are doing all the buyingOur Sponsors:* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related