{"id":3098,"date":"2015-04-11T02:15:14","date_gmt":"2015-04-11T06:15:14","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=3098"},"modified":"2018-06-10T10:54:52","modified_gmt":"2018-06-10T10:54:52","slug":"turning-a-corner-the-u-s-economy-will-soon-officially-re-enter-the-super-recession","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/turning-a-corner-the-u-s-economy-will-soon-officially-re-enter-the-super-recession\/","title":{"rendered":"Turning A Corner: The U.S. Economy Will Soon Officially Re-Enter The \u201cSuper Recession\u201d"},"content":{"rendered":"

 
\nFirst quarter economic contraction is all but a guarantee. Over 7 years after the \u201csuper recession\u201d started, the economy will almost assuredly enter an \u201cOfficial Recession\u201d that began in January. The economic data, which is heavily manipulated by the government to such a degree that it has shown the U.S. recovered from the \u201csuper recession\u201d of 08\u2019, is beyond ridiculous. A long book could be written on this topic, both how GDP is calculated as well as the C.P.I (nominal GDP growth \u2013 C.P.I = real GDP growth), so we will only make a brief mention of this.
\nRegarding GDP growth, how can a healthy and growing economy have consumption accounting for 70% of the economy while engaging in massive deficit spending, unthinkable surges in government, corporate and household debt with such massive structural issues it NEEDS continual debt financing? The answer is, it can\u2019t. Regarding the C.P.I, if we use how it was calculated in 1980 (which has averaged over 9.0% from the start of 2009-to-present day) and how it was calculated in 1990 (which has averaged roughly 5.50% from the start of 2009-present day), the \u201csuper recession\u201d never ended (remember the economy exists a recession after two sequential quarters of positive real GDP growth). This has to do with the countless gimmicks employed in today\u2019s calculation including geometric weighting, hedonic weighting and much more frequent substitutions.
\nDespite all the gimmickry employed in an attempt to try and fool the American people that the U.S. economy is humming along nicely, it undoubtedly entered at least the first leg of falling back into an official recession territory. This will continue in the near future as the policies to foster real economic growth are absent and have been for 15-years!. Granted, a possibility does exist for the first and even second print of Q1 2015 GDP to show it grew, however should this occur it will a fraction of one percent and by the final print turn negative.<\/p>\n