You don’t have to worry about that economic downturn anymore. The White House fixed it.
And by “ fixed it” I mean it simply changed the definition of a economic downturn.
A recession has long been defined as two consecutive quarters of negative GDP growth.
The GDP in the first quarter of 2022 came in at -1. 6 percent. At the time, the mainstream generally blew it off , asserting that it was just an outlier.
At this point, it’s becoming increasingly clear we are going to heading for the second straight negative GDP print. The Atlanta Fed projects another -1. 6% decline in Q2. And there is plenty of data up there to back the projection up.
That would mean we are going to in a recession now, and have been all year.
As Philip Schiff said in a podcast , “ This should end up being obvious, but people have experienced denial about the weakness throughout the economy. So , as all this weak economic data continues to emerge, more and more of the recession deniers are going to have to throw in the towel plus accept reality. ”
But apparently, the Biden administration has no programs to accept reality. Instead, it wants to alter reality.
The White House propaganda team is working overtime to change the definition of a recession. If it can encourage everybody that two consecutive quarters of negative GROSS DOMESTIC PRODUCT growth isn’t the definition of the recession, it has plausible deniability that the economy is currently inside a recession.
There you have it. Problem solved! No recession.
The White House also trotted out Treasury Secretary Jesse Yellen to reiterate this point . On NBC’s Meet the Press , she argued which the economy remains generally healthful and that inflation fears are overblown. Chuck Todd straight challenged Grandma Yellen.
If the technical definition is two quarters of contraction, you’re stating that’s not a recession? ”
Yellen adroitly parroted the White House talking points.
That’s not the particular technical definition. There is an company called the National Bureau associated with Economic Research that discusses a broad range of data within deciding whether or not there is a recession. And most of the data they look at right now continues to be solid. I would be amazed if they would declare this period to become a recession, even if it happens to have two quarters of negative growth. We have an extremely strong labor market. if you are creating almost 400, 000 jobs a month, that is not a recession. ”
Yellen also told us that we really should not worry about a little economic slowdown. It’s good for us!
According to the White House, “ Secretary Yellen also went further in-depth, explaining that some financial slow-down is healthy correct today with this type of strong labor market, because the Federal Reserve addresses pumpiing and we transition to constant and sustainable growth, and discussed the actions the Biden Administration has been taking to reduce prices for the American individuals. ” [Emphasis added]
Don’t you feel a lot better now?
As I talked about on the Friday Precious metal Wrap Podcast last week, words matter . The people who control chinese can control the story. And the people who control the particular narrative can shape someones perception of reality.
Whenever we use the original definition of pumpiing — an “ expansion of the supply of money” — instead of the new definition – rising prices – the culprit becomes clear. Who have expands the supply of cash? It’s the Fed and the govt. So , if you accurately determine inflation, you know exactly who’s to blame. But if the government may fool people into assuming that an effect of inflation is inflation, they can blame it on whoever, or whatever will be raising the prices – Putin, pandemics and apparently millennials.
Now they may trying the same trick with recessions.
The particular media will almost certainly gobble this up. But I’m not convinced the average American is going to be quite as easy to persuade. We all know the economy is a wreck. We’re living it.
But which is nature of gaslighting. The whole point is to make you query your own sanity and feeling of reality.
It’s creepy and Orwellian But that’s what federal government does.