Theme Music, Maestro, if you please:
Stocks continue lower this morning with the dollar slightly higher, bonds higher, oil higher, gold & silver higher, and food commodities continue lower after breaking down from their prior ranges.
For those worried about gold, here is the daily chart once again showing that the primary and secondary uptrends are still very much in tact:
Nothing highlights what I’ve been saying about the impossible math more than the “Super Committee’s” failure to even take a bite from it. Remember, they were tasked with “saving” $1.2 trillion over 10 years, but that would not have stopped the deficits from growing, it would have only slightly slowed their growth. And that was pure fantasy because any projections they were working with were simply false as they still don’t understand the exponential function of math. The following video series should be mandatory for all politicians, economists, accountants, heck everyone:
When I say impossible math underlies our economy, impossible is exactly what I mean. Not just in the United States, but in Europe and throughout the developed world. The root of the impossible math is the way in which our money comes into being as a debt that is owed to private individuals. You see, the Super Committee cannot stop making interest payments on the now $15,000,000,000,000 debt because they are living and fed from campaign money that comes from the people who profit from those insane interest charges.
There is only one way that the Super Committee can actually accomplish their impossible mission, and that is to end the “Fed” and begin producing sovereign, non debt money. Of course doing so unrestrained would be another problem, thus they would have to create checks and balances such as are contained within Freedom’s Vision.
Any politician who says they can “create jobs” while remaining within the central banker box is simply high, they do not understand the impossible math and how the economy is saturated with debt. There is only one way to create jobs going forward, and it involves clearing out the debt saturated condition, which must be accomplished one way or the other – any plan that fails to clear the debt will fail.
Of course we still haven’t addressed step one that prevents any “Super duper stupendous committee” from success – step #1 is to restore the proper rule of law. You start down that path by prosecuting the FRAUD, which is still rampant.
Speaking of fraudsters, I have a personal message for the stinking pile of manure that is Newt Gingrich… Go F___ yourself, Newt. And while you’re at it, it is YOU who should get a job and take a bath, I can smell the immoral narcissistic stench clear across the country! For you to say that it was not the Occupiers that paid for the parks they are occupying is not only patently false, as they are tax payers who most certainly did help to pay for that park, but you illustrate exactly how it is you and your overweight pandering to central bankers that proves you would accomplish exactly nothing except deepening the problems America faces. It is YOU who needs to go get a freakin’ job, you A-hole. Perhaps a little manual labor would be good for the soul, try it. By the way, you are now clearly in the running for the Economic Edge Asshat of the Year Award – congratulations.
What a field of candidates. Newt’s immoral words and life deeds may not land him in prison, but I know that Cain probably deserves a very long prison stay indeed, and would love to see that other Asshat Award contender on trial for his sexual assaults and for using his position of power over women. Running for President? He belongs behind bars least his next victim be one of our daughters!
The first revision for Q3 GDP came in much lower than expected at 2.0%, down from 2.5%. Note in Econocomplicit’s commentary how they try to spin this positive, yet also note how the growth figures were lowered, but the inflation figures were not:
Highlights
The economy got a moderate downgrade for the third quarter but the downgrade largely came from where there is the least damage to forward momentum. The Commerce Department's second estimate for third quarter GDP growth was bumped down to an increase of 2.0 percent annualized, compared to the initial estimate of 2.5 percent and to second quarter growth of 1.3 percent. Analysts had forecast a revision to 2.4 percent annualized.
The downward revision primarily was due to a downward revision to inventory investment-from plus $5.4 billion initially to minus $8.5 billion. This revision is the equivalent of a 0.43 percentage point lower contribution to GDP growth.
Minor downward revisions also were made to personal consumption, nonresidential fixed investment, residential investment, and government purchases. Net exports were revised up to minus $400.7 billion from minus $409.4 billion.
The net effects of revisions to inventories and other components (notably net exports) leave demand numbers still relatively healthy. Final sales of domestic product were unrevised from the initial estimate of 3.6 percent. Final sales to domestic purchasers were down to 3.0 percent from the original estimate of 3.2 percent annualized.
Economy-wide inflation was unrevised at 2.5 percent and compares to the second quarter rise of 2.5 percent. The market median forecast was for 2.5 percent.
Turning to current quarter strengths and weakness (as opposed to component revisions), the economy was still gaining modest momentum. The acceleration in real GDP in the third quarter primarily reflected accelerations in PCE and in nonresidential fixed investment, a smaller decrease in state and local government spending, a deceleration in imports, and an acceleration in exports that were partly offset by a larger decrease in private inventory investment.
On the news, equity futures dipped modestly. Nonetheless, the key points today are that there is no significant change in underlying demand in the third quarter and recent monthly data indicate further strengthening.
Of course that is all bumpkis. Real GDP is not only negative, but it is extremely negative. And our GDP is overstated by 40% or more because they count our deficit spending, debt owed to private bankers, as “production.” That means that GDP is really a measurement of our money(ness), not of production. Below is a chart showing supposed GDP along with our national debt in grey, and below that all the current “Fed” measurements of money supply – note how all the money adds up to debt, since all our money is debt! Then notice how our national debt, which is now $15 trillion not the $14 trillion depicted there as they can’t update their charts fast enough to keep pace (so I extended the line to reflect that), is now outpacing our GDP:
GDP/National Debt/Money Supplies (money is debt):
Now then, when you take our GDP and divide it by our money supply, you quickly understand that something not good is happening – namely that the amount of “production” for a given amount of money is diminishing rapidly:
GDP Divided by MZM:
Because our money is debt, we are boxed in. Add more money, add more debt = impossible math. Pay down your debt, you have less money = impossible math. How hard is this to understand for crying out loud!
Of course there are savvy people in politics and in banking who fully get this. It is BY DESIGN. Debt is their tool that is used to control YOU. Pointing out the impossible situation of the system they create and perpetuate does nothing until we are fully ready to remove them from power. To do that all you must do is no longer consent to their lies! I, Nathan Martin, do not consent to their lies! Say it and repeat it, it will literally set you free.
Now let’s examine today’s announcement that Corporate Profits rose by 6.5% year over year in Q3, up from the .3% prior!
Highlights
Corporate profits in the third quarter grew to $1.507 trillion annualized-up from $1.470 trillion in the fourth quarter (previously $1.470) trillion). Profits in the third quarter rose an annualized 10.3 percent, following a 4.3 percent gain the quarter before (previously 4.3 percent). Profits are after tax but without inventory valuation and capital consumption adjustments. Corporate profits on a year-on-year basis advanced 6.5 percent, compared to up 0.3 percent in the second quarter.
Of course these “Corporate Profits” are complete nonsense too! They are there only due to the FRAUD. Remove the fraud, and corporate profits vanish. I’m talking about all the fraud, the mark-to-fantasy accounting, the offloading of stench filled debt onto Fannie and Freddie, the corporate shell games that are being played, the rating agency fraud, the “war on drugs” money laundering, etc., etc..
As proof of that, below is a chart showing the parabolic nature of corporate profits – they rose as the fraud rose, then for a very short time mark-to-market accounting was reimposed, profits crashed. They used their make money from nothing power to buy off Congress and the FASB, and BINGO, next thing you know mark-to-fantasy is back, and so are parabolic corporate profits:
Corporate Profits:
Gee, did your home value recover like that? How about your retirement plan? Does your budget look better than ever? How about your cost of living? To me, that chart is symbolic of the Occupy movement’s cry.
Once again, since it they who want to deceive us all with “productivity” propaganda, it’s time to revisit that very apropos Kennedy quote:
“Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross national product...if we should judge the United States of America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children.
Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans.”
― Robert F. Kennedy
We are the many
You are the few
I, Nathan Martin, no longer consent to the lies.