How Strong Is the Economy Really?

It is a mystery, thanks to Bidementia’s untrustworthy “official” statistics.  In the real world, it appears consumers, who drive most economic activity, are buying less.  I have noticed that restaurants are far from full in the last few weeks.  The business people I know who do construction and landscaping and other work are all reporting a substantial slowdown in activity.  Some retailers are warning about weak sales.  But the official statistics are showing substantial GDP growth, including the revised second quarter data released this weak.  A Zero Hedge post digs in and finds some of the usual Biden/Harris hanky-panky in producing those GDP Statistics.  (ZH Post)

As the post explains, the US government, in its infinite ignorance, somehow miraculously revised personal income up by $800 billion dollars and spending up by over $300 billion, which then makes personal savings look greater than they have been.  Since spending and savings prop up the economy, this makes it appear that consumers are in better shape than they are, given record credit card balances and delinquencies.  It is very hard not to believe these changes are political in origin, driven by a desire to make the economy look better for the looming election.  But consumers know what has happened with prices and they sense the weakness in the economy, so I doubt these tricks have any real power.