| | | Don Surber
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Thursday, April 28, 2022
Media spins recession
 The government announced the GDP shrank 1.4% in January, February and March. If this shrinkage continues for another 3 months, we will be in a recession.
That is on top of inflation.
The good news is recessions kill inflation. The bad news is government overspending under Biden has made it nearly impossible for the government to revive the economy if we go into a recession.
In the 1930s, there was no inflation. In fact, there was deflation, which was even worse. Many a farmer starved and lost his farm to taxes.
World War II, not FDR, ended the decade-long depression.
Today, the media did its best to spin the bad news. Even Fox threw in the word "unexpectedly" as if Bidenomics were not designed to destroy the economy.
And it was. Every policy from the man is aimed at our destruction. From Afghanistan to open borders, Biden is a one-man wrecking crew.
AP tweeted, "The U.S. economy shrank last quarter for the first time since the pandemic recession struck two years ago, contracting at a 1.4% annual rate, but consumers and businesses kept spending in a sign of underlying resilience."
They kept spending because the government printing presses are in overdrive.
In its story, AP said, "The economy’s overall decline in the January-March quarter does not mean a recession is likely in the coming months. Most economists expect a rebound this quarter as solid hiring and wage gains sustain growth.
"Instead, the steady spending by households and companies suggests that the economy will likely keep expanding this year even though the Federal Reserve plans to raise rates aggressively to fight the inflation surge. The first quarter was hampered mainly by a slower restocking of goods in stores and warehouses and by a sharp drop in exports."
A year ago, AP quoted experts as saying inflation was transitory.
The Wall Street Journal painted a happy face on the contraction.
It reported, "Despite the slip, many economists think that overall the economy remains on track to resume modest growth in the second quarter and beyond, in part because consumers and businesses are continuing to spend. Consumer spending, the economy’s main driver, rose at a 2.7% annual rate in the first quarter, a slight acceleration from the end of last year."
Nice try but consumer spending rose 2.7% because inflation rose 8.5%.
But CNBC was more straightforward.
It reported, "Gross domestic product unexpectedly declined at a 1.4% annualized pace in the first quarter, marking an abrupt reversal for an economy coming off its best performance since 1984, the Commerce Department reported Thursday.
"The negative growth rate missed even the subdued Dow Jones estimate of a 1% gain for the quarter. GDP measures the output of goods and services in the U.S. for the three-month period.
"A plethora of factors conspired to weigh against growth during the first three months of 2022, which fell off a cliff following the 6.9% gain to close out last year."
Meanwhile, inflation is getting worse.
Zero Hedge reported, "U.S. East Coast Inventories Hit With Supply Shock Ahead Of Summer Driving Season."
Under Trump we had peace, prosperity, low inflation and low unemployment. The media hated him.
Under Biden we have war, recession and inflation. The media props him up. |
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