Hello Energyplay, I am sure this is not quite what you had in mind when you figured that the economy is a a healthy growth trajectory again:
More screwed up US statistics, noted by Bill Fleckenstein:
In honor of today's GDP data, let's take a look at that statistical fantasy called "real" growth. Hedonic adjustments, as I have noted in the past, are quite effective in dressing up otherwise ordinary numbers. (Thanks to Sean for the idea.) It turns out that spending on computers and peripherals, etc., was $76.3 billion this quarter, vs. $75.4 billion the prior quarter, a gain of $900 million. But thanks to GDP massaging by the Bureau of Labor Statistics, via the hedonic quality improvements, etc., that gain magically morphs to $15.9 billion. After a while, $15 billion here and there adds up.
Basically, we've magnified the actual gain more than 15 times ...
Chugs, Jay |
