U.S. economic growth up sharply.
Poor U.S. earnings shake confidence.
These were two actual headlines seen on Google News last night. Excuse me but last report I saw was that company earnings were up 70%. Who's screwing with the facts?
The GDP grew by 2% for the third quarter which would make for an annual rate of 8%. On average and in good years we grow by 6% . So somebody's fudging the numbers here.
On one page of the BBC business news we had the following list of stories:
- Nintendo Wii U to be sold at loss
- Amazon reports big quarterly loss
- Apple profits miss expectations
- HTC sees lower sales at year-end
- South Korea economic growth slows
- Credit rating of French banks cut
- UK economy sees return to growth
- Santander profits plunge by 90%
- Ford cutting 1,400 jobs in the UK
So on a global scale things aren't looking too hot right now. With Greece in the pits, riots in Spain and the former Italian PM busted for tax evasion is there any cause for celebration? Nobody's said a word about the austerity measures put in place for the UK, Ireland or Portugal.
Forget Frankenstorm the world is headed for a meltdown only nobody will acknowledge it. I think I've said it a thousand time on this blog. You can't cut things to the bone and expect an economy to grow. Workers have had salaries and benefits cut all while local taxes and fees have gone up. Companies keep asking for more in the way of prices but it's not going to the workers.
Spain is a good example. Their unemployment rate just hit 25%. For workers 16 to 24 it's 52%. That by definition is a depression and Greece is in the same sinking boat at the moment.
What is selling to make for this economic growth. Airplanes are being sold to several countries that have ordered them and even if they cancel Boeing makes money. Cars seem to be selling well on the world market which is keeping Detroit and Ohio going. And I'm sure the arms dealers are making a killing at the moment (pun intended).
So at the moment all I can do is sit back and listen to the arteries harden, watch the rain wash out the embankment out front and wonder when I can afford to replace my tattered and worn out clothing. Everything is slowly falling apart and all that can be done is sit and watch a slow moving train wreck.