The American economy appears to have created far fewer jobs this spring than has been reported so far, a new government report indicated yesterday...Hmm... hard to believe that a "headline" economic number was overinflated by a factor of three, then quietly* revised away when it seemed no one was looking. The article also notes that there is now reason to believe that last month's job creation number (which is as phony as a Federal Reserve Note anyway) will also be revised downward, maybe by the same 2/3 factor. If they tripled nominal inflation we might be getting somewhere.
The new report concluded that personal income from wages and salaries grew at an annual rate of 1.6 percent in the second quarter, far below the 4.5 percent that had previously been estimated.
The government did not explain why the revision was made...
But there's a method to the madness that goes above and beyond what I pointed out before (though I'm too lazy to look for the link presently), that of job numbers being revised downward to make next month's look better even if there's no actual change**. The real reason exists in what I cut out in the ellipses above:
That could provide further impetus for the Federal Reserve to lower interest rates when it meets Dec. 11.The credit crunch caused by the last round of low rates will be fought by this round of low rates, and rates will be cut even if it completely destroys the dollar. The Fed is in a panic, the executive branch is in a panic***. Only Congress, which collectively knows too little about anything to panic properly, is doing the right thing, if only by default: nothing.
Of course, with half of them running for President, there will be plenty of time for them to panic, too.
* by which I mean "without fanfare or explanation." If El Presidente trotted these number out publicly like he did the ones that just disappeared, I must've missed it.
** the Illusion of Progress is a very powerful symbol when presented by politicians.
*** El Presidente's conundrum is difficult to deal with because it is self-contradicting: on the one hand he has to present "strong economy" to the voters to keep the GOP from getting slaughtered this fall (it won't help) and on the other hand, the economy must be weak to justify cutting rates. It requires two sets of contradictory numbers. What a coincidence that we have exactly that.