Good stuff from Mish today on the recent GDP numbers.
He says they are inherently deceptive because they count all spending, including government spending, which is by definition consumptive spending extracted from the productive side of the economy.
He quotes Federal Reserve Chairman Ben Bernanke admitting as much:
"It takes GDP growth of about 2.5 percent to keep the jobless rate constant. But the Fed expects growth of only about 1 percent in the last six months of the year. So that's not enough to bring down the unemployment rate."
About which Mish says:
Inquiring minds might be asking: Why does it take 2.5% growth to keep the jobless rate constant? The answer is the first 2.5%+- of GDP is fictional. When the economy is growing at 2%, it feels like a recession because it probably is, even though no one will admit it.
