Guided By Nonsense - The Data Doesn't Add-Up | Zero Hedge

Guided By Nonsense - The Data Doesn't Add-Up

Submitted by MN Gordon of Economic Prism (annotated by Acting-Man's Pater Tenebrarum),

Seven Year Achievement

“Read the directions and directly you will be directed in the right direction.” — Lewis Carroll

See? It’s easy Janet! Just read the directions!

U.S. consumers are at it again.  After a seven year hiatus they’re once again doing what they do best.  They’re buying stuff.

According to the Commerce Department, personal consumption expenditures (PCE), which is the primary measure of consumer spending on goods and services in the U.S. economy, increased $119.2 billion in April.  That marks an increase of 1 percent, and is the biggest one month increase since August 2009 – nearly seven years ago.  Indeed, this is quite an achievement.

The consumer, you know, is the primary engine of U.S. economic growth. Without consumption GDP doesn’t go up; rather, it goes down.  Moreover, in a debt based money system, when GDP goes down the whole financial debt structure breaks down.

We don’t condone it.  Certainly we’d prefer an honest hard money system where savings and investment drives growth as opposed to borrowing and spending.  But our preference has no bearing on reality in this matter.

Cont.......