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[KimchiNinja]

Paul Singer (hedge fund manager whose oldest fund has done 14% ITD) wins the award for most direct in his assessment of the US economic situation. It always amazes me that people don't spot-check numbers. The USG has been having fun with statistics and blatantly making up numbers for years...if you remove all the fake numbers, and media propaganda, it's not a pretty picture, even after years of pumping fake money into the economy.

Normally I trim quotes, but everything this guy says is golden...

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Singer Says U.S. Growth Optimism Unwarranted as Data ‘Cooked’

Paul Singer’s Elliott Management Corp. said optimism on U.S. growth is misguided as economic data understate inflation and overstate growth, and central bank policies of the past six years aren’t sustainable.

The market turmoil in the first half of October may be a “coming attractions” for the next real crash that could turn into a “deep financial crisis” if investors lose confidence in the effectiveness of monetary stimulus, Elliott wrote in a third-quarter letter to investors, a copy of which was obtained by Bloomberg News.

“Nobody can predict how long governments can get away with fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth,” New York-based Elliott wrote. “When confidence is lost, that loss can be severe, sudden and simultaneous across a number of markets and sectors.”

Six years of near-zero interest rates and three rounds of asset purchases by the Federal Reserve have fueled economic growth and helped U.S. stocks more than triple from their 2009 low when including dividends.

“We do not think this optimism is warranted, and we think a lot of the data is cooked or misleading,” Elliott, which manages $25.4 billion and was founded by Singer in 1977, wrote. “A good deal of the economic and jobs growth since the crisis has been fake growth, with very little chance of being self-reinforcing and sustainable.”

Elliott said that the reported growth numbers are too high because the official inflation number is understating actual inflation by as much as 1 percent a year. That’s because economists focus on measures such as core inflation or make “hedonic adjustments” for improvements in the quality of consumer goods. Inflation is also distorted “by the increasing gap between the spending basket of the well-off and that of the middle class,” the firm said.

The unemployment rate, at 5.9 percent in September, doesn’t reflect that the workforce participation rate is at a 35-year low, according to Elliott, and that full-time jobs have been replaced by part-time jobs, and high-paying jobs by relatively low-paying jobs. Real wages, the firm said, have been stagnant since the financial crisis.

“Our belief is that the global economy and financial system are in a kind of artificial stupor in which nobody (including ourselves) has a good picture of what the next environment will look like,” the firm wrote.

http://www.bloomberg.com/news/2014-11-04/singer-s-elliott-says-optimism-on-u-s-growth-unwarranted.html#disqus_thread

[Lucas]

[GENO123]

The US economy sucks -true.


Now the context :

Just about everyone else's economy sucks worse. Kimchinija has eyes for the US and only the US

The US is the prettiest horse in the glue factory.

Yes most Americans don't live very well. But very soon they are going to have company because living standards are going down in just about ever industrialized country.



China??

China’s growth in danger of slowing more sharply
Jamil Anderlini in Beijing
Sunday, 2 Nov 2014 | 6:47 PM ET

http://www.cnbc.com/id/102144410#.


China cooks data too.

Governments world wide have made promises to their citizens that they will not be able to keep. It is not only in the US.

This discussion will end very soon