The U.S. Economy Paralyzed by Intervention and Manipulation

Hat tip to Zerohedge.com, Peter Schiff, and Jason Lewis

Given the absolute failure of all the intervention and manipulation of the (formerly) free market system by the federal government and the Federal Reserve, the Boston Federal Reserve is now floating the idea of permanently manipulating the monetary system via perpetual Quantitative Easing and perpetual zero interest rates. This willful negligence is setting the stage for inflation and the permanent devaluation of the U.S. Dollar. 

Meanwhile, the rich get richer and those of us living in the real economy continue to suffer. During the first quarter of this year, the stock market roared higher while virtually every economic indicator headed in the other direction.

• The Gross Domestic Product (GDP) was essentially zero! We saw massive inventory build-up (the largest since 2010) which boosted GDP by nearly 3.0%. Without this build-up, Q1 GDP would have been -2.5%. 
•  April PMI Manufacturing Flash Index at 54.2 biggest miss ever.
• New home sales tumbled by 11.1% – biggest drop since July of 2013. 
•  March Durable Goods was up slightly but less transportation, the index unexpectedly declined 0.2% (an indicator of a recession). 
•  April Service Sector PMI missed lowest expectations at 57.8 – the biggest miss ever. 
• Dallas Fed Manufacturing Survey recorded significant drop at -16 (biggest losing streak ever)

Negative economic news buoys the stock market because it removes fear of interest rate hikes. Weak economy means more cheap money which means higher stock prices.

http://www.zerohedge.com/news/2015-04-29/us-economy-grinds-halt-q1-gdp-tumbles-below-expectations-grows-only-02.

GDP Growth - Obama, Reagan and Bush

Last week, the Commerce Department announced second quarter GDP growth of 1.7% and they revised down the first quarter numbers to 1.1%.

For some perspective on just how economically hapless the Obama Administration is, consider his record against George W. Bush and Ronald Reagan at the same point in their eight year terms as President. The charts below tell you everything you need to know.

Stock Market Up Economy Down

The Dow Jones Industrial Average hit an all-time high today cresting over the previous high in 2007. Are you better off today than in 2007? Here are a few comparisons:

• Consumer Confidence: 2007: 99.5; Today: 69.6 (just up from 58)
• GDP Growth – 2007: 2.5%; Today: 1.6% 
• Gas Prices – 2007: $2.75; Today: $3.75
• Unemployed – 2007: 6.7 million; Today: 13.2 million
• Unemployment Rate – 2007: 5%; Today: 8.1%
• Labor Force Participation Rate – 2007: 66%; Today: 63.6%
• Federal Reserve Balance Sheet – 2007: $890 billion; Today: $3 TRILLION
• Number of people on food stamps – 2007: 26 million; Today: 47.5 million
• US Annual Deficit – 2007: $160 billion; Today: $1.2 TRILLION
• US National Debt – 2007: $8.9 trillion; Today: $16.6 TRILLION

Make no mistake, our national leaders are either grossly incompetent and economic ignoramuses or they are purposely leading this country down a road of less freedom and bankruptcy.