I noted a while back that large urban centers are still seemingly doing OK while outer areas of cities are in decline. USA Today calls that an urban donut effect. It's a looting effect, and it only works for cities that are big enough.
If you strip out inflation, economic indicators say we're in a recession because we are.
"What data? How about the fact that forward earnings are rolling over at a pace that's only been seen during recessions? Or that factory activity in the Chicago area slumped to a low not seen since July 2009? Or that overall U.S. economic data is disappointing in a way that it hasn't quite since 2012? Or the wipeout in commodity prices over the last few months, the kind typically seen during recessions? Or that consumer prices, on the headline measure, declined outright for the first time since Lehman Brothers imploded?It's bad.
Related: America Is In Deflation. So What?
Moreover, the problem is global. So far this year, 20 central banks around the world have cut interest rates. And most other countries — except Singapore, Ireland and Japan — are also seeing earnings downgrades."
According to the government's corrupt metric, prices are falling.
"Instead, the U.S. has now technically slipped into deflation for the first time since shortly after the Great Recession. Consumer prices as measured by the Labor Department fell 0.7 percent from December to January — the largest monthly drop since December 2008 — as the result of plunging gas prices. That left the Consumer Price Index down 0.1 percent from the previous year, the first such drop since October 2009."Shadowstats.com shows real inflation about about 8 percent.
290 new billionaires appeared this year including Michael Jordan.
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