Yesterday the Bureau of Labor Statistics (BLS) announced that real gross domestic product (GDP) increased by 4.9% for the third quarter. This number is being by heralded the mainstream and politicians as proof of a booming economy and resilient consumer.

Touting his “Bidenomics,” President Joe Biden issued an official statement on these numbers, citing this number as proof that the U.S. economy under his leadership is doing great, and claimed that thus on-going union strike at auto manufacturing plants have reached a tentative deal, which occurred under his leadership, Biden asserts.

SEE: Treasurer Janet Yellen Says US Can Fund Israel And Ukraine’s Wars Simultaneously, Claims Economy Is ‘Doing Extremely Well’

The President said in his press release:


I always say it is a mistake to bet against the American people, and just today we learned the economy grew 4.9% in the third quarter.  I never believed we would need a recession to bring inflation down – and today we saw again that the American economy continues to grow even as inflation has come down. It is a testament to the resilience of American consumers and American workers, supported by Bidenomics—my plan to grow the economy by growing the middle class. 

The unemployment rate has been below 4% for 20 months in a row, real wages are up over the last year, and median wealth for American families has grown by a record amount accounting for inflation.

Just yesterday, the UAW and Ford reached a historic tentative agreement that provides a record raise to auto workers and is a testament to our strategy for a powerful manufacturing future made in America, with good, union jobs.  

I hope Republicans in Congress will join me in working to build on this progress, rather than putting our economy at risk with reckless threats of a shutdown or proposals to cut taxes for the wealthy and large corporations, while slashing programs that are essential for hard-working families and seniors.


But the rest of the story sets a different tone.

It is important to note that GDP also includes government and military spending. This is important as the United States’ military production and foreign aid has been reinvigorated, on account of the war in Israel, on top renewed spending for Ukraine and even Taiwan.

“We are, as my friend Madeleine Albright said, “the indispensable nation,”” Biden said in an address to the nation several nights ago.

But, this reported growth in GDP was done with debt. Citing Federal Reserve data, The WinePress reported in August that credit card debt surpassed $1 trillion for the first time ever, as household debt exceeded $17 trillion.

Additionally, with interest rates and inflation still high, it forces Americans to use more dollars when purchasing and borrowing, including interest payments. Just the other day it was reported retail credit card APR hits record high of almost 29% on the average.

This can be reflected in the “velocity of money” of chart, a chart that measures that rate at which moves through an economy. High velocity generally means a strong or growing economy while downturns usually represent an economic slowdown and consumer tightening. Currently the money velocity is seeing a stark uptick, after hitting all-time record lows; which infers that higher than reported inflation, elevated borrowing costs, and interest payments are eating away at Americans and forcing them to use more dollars.

This artificial gain in GDP, and other data points that indicate Americans are struggling to get by, were detailed in two videos by Lena Petrova, CPA, and ClearValue Tax:

https://www.youtube.com/watch?v=bmouVXlkznw
https://www.youtube.com/watch?v=03UVF6ScMAg&t=5s

AUTHOR COMMENTARY

I mention this report for two main reasons:

For starters, this fake GDP number represents the war machine turning, the war pigs on parade, and the military industrial complex raking in the dough. The economists I cited above did not touch on this but I wanted to make sure everyone understands another factor in play. The U.S. is a service-based economy that hardly produces much, and what it does produce is debt to other nations and war toys to keep the war economy going. Once America stops fighting useless wars, the U.S. economy will collapse.

The other reason I published this report is to combat some of the propaganda from the Biden administration and mainstream media that may fog and disillusion your mind from the truth.

The economy is dead and we don’t have one.

The money velocity chart is not the end-all, be-all metric, but it does give you a general glimpse into what is going on; and thusly proves, as I have talked about before, there was no economic “boom” under Presidents Obama and Trump, contrary to popular opinions from both camps; and Biden’s “boom” is built on inflation and irreparable, and therefore requires more cash to spend and borrow.

Throughout 2021 and 2022 I had reported that inflation would scream much hotter, and sure enough it came to pass, though you did not need me to point out the obvious, though so few were willing to admit it.

The U.S. is on the verge of near literal collapse. Year, after year, after year of economic woe continues to compound on each other; and now practically everything is reaching a convergence point where it’s all going to just collide at full speed. Lord willing, in time, I hope to do a much more detailed report on the economic conditions and where it’s headed.

SEE: The United States Does Not Have An Economy

[16] So then because thou art lukewarm, and neither cold nor hot, I will spue thee out of my mouth. [17] Because thou sayest, I am rich, and increased with goods, and have need of nothing; and knowest not that thou art wretched, and miserable, and poor, and blind, and naked:

Revelation 3:16-17

[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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3 Comments

  • Spending for Taiwan? Are we going to see some ruckus with Taiwan and China sometime soon? I had been wondering about China lately. Pretty quiet with them it seems, except for these things:

    “China took a different approach, initially urging “relevant parties to remain calm, exercise restraint, and immediately end hostilities.” After pressure, China updated its stance to declare that it “opposes and condemns acts that harm civilians,” though it stopped short of explicitly calling out Hamas.

    Since then, China has been unequivocal about its disapproval of Israel’s retaliatory air strikes on the Gaza Strip, which have so far killed at least 2,700 people and wounded 9,700 Palestinians. Chinese foreign minister Wang Yi told his Saudi counterpart in a phone conversation on Saturday that “Israel’s actions have gone beyond the scope of self-defense,” Chinese state news agency Xinhua reported.

    After brokering a historic rapprochement between the estranged countries of Saudi Arabia and Iran in March, China offered earlier this year to mediate a similar resolution between Israel and Palestine. China has maintained that it does not take a side in the conflict and wants to maintain a friendship with both Israel and Palestine.

    But since the Israel-Hamas war broke out earlier this month, experts and observers say China’s credibility as a neutral party has eroded.

    “As a broker, Beijing will have to straddle between Arab and Israeli interests,” Clemens Chay, a research fellow at the National University of Singapore’s Middle East Institute, tells TIME. “However, the refusal to denounce Hamas will have ruffled some feathers in Israel.”

    In recent days, Chinese authorities have refrained from describing Hamas’ attack as terrorism—even as several Chinese nationals were revealed to have been victims (on Monday, the Chinese foreign ministry confirmed the deaths of four Chinese nationals, along with two others missing and six injured)—and have repeatedly called for a ceasefire and “two-state solution.” Meanwhile, Chinese state media has blamed the U.S. for fanning tensions in the region, and the foreign minister reaffirmed China’s support for the “just cause” of Palestinian nationalism.

    Some have explained China’s muted response so far to the current moment through its longstanding policy of non-interference; some point to its historical support for the Palestinian cause in the 1960s, including offering arms and military training for Palestinian guerillas, before it moderated its stance in the 1990s as it established full diplomatic ties with Israel.

    Others say China’s unwillingness to condemn Hamas and its calls for an end to violence on both sides may stem from a more pragmatic interest in keeping itself in the good graces of Arab states in the region, where China is eyeing an ambitious economic expansion—most notably through President Xi Jinping’s flagship Belt and Road Initiative (BRI).

    The region, which is crucial to the BRI for its energy exports, is rapidly deepening its economic cooperation with China, which has signed economic partnerships with most countries in the Middle East. In particular, Chinese investments and construction projects in Saudi Arabia and the UAE, two of the top investment destinations for the BRI, have totaled $56.28 billion and $40.81 billion, respectively. China has also been Iran’s largest trading partner for a decade and in 2021 agreed to invest $400 billion in the country over the next 25 years.”

  • If any politician is talking; he is lying, period end of story. If it’s good, it’s bad; if it’s bad it’s toast, ya can only polish a piece of dung so much, it’s still dung.

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