All sorts of false narratives are being fed to spook away any suspicion that these exuberant numbers are just posing as a facade and will not hold up long-term. In this channel, we have heavily discussed in previous economic collapse videos how a V-shape economic recovery actually means… no recovery at all. It marks the immediate stage after a big crash, namely, the reaction to the health crisis’ consequences, which is still unfolding and it does not seem to be leaving us as soon as we thought. Therefore, there are many other stages to follow, and this alleged economic “recuperation” was not magic or result of a colossal amount of effort, as CEOs and investors are trying to imply so that they look like they are helping to boost this “miraculous” upturn. In fact, it was expected. We have announced that this was exactly what it was going to happen, you can check our previous videos and you’ll find it. Many economic experts had alerted this response would be coming, and it wouldn’t necessarily mean that anything would be coming back to normal. At this point, there is no normal anymore.
To give you further proof, we’re going to start by analyzing the ambiguities on the statement of a renowned stock advisor in an attempt to discredit the IHS Markit survey, in which it has been disclosed that the services sector of the economy is not improving but has merely leveled out. That is to say, the survey shows that the business economy is neither falling any further nor is it recovering.
In his article, the investment advisor tries to portray the survey as inaccurate, in a pitiful attack to the truths he doesn’t want to be told – or doesn’t want to believe in. So, if you’re sitting, hold on tight to your chairs and grab some popcorn, because we’re about to break down some fake arguments in here.
His statement starts with an obvious affirmation, to seem that he is trying to make a legit point: “Services are some 80% of the US economy and so we can take their growth or contraction as a pretty good proxy for the economy as a whole”. But then, he goes on with the most twisted graphic examination possible: “The seasonally adjusted final IHS Markit US Services PMI Business Activity Index registered 50.0 at the start of the third quarter, up from 47.9 in June and improving on the ‘flash’ estimate of 49.6, to signal a stabilization in service sector business activity.”
Seriously? So now the floor rate that used to demonstrate a clear decline in the economy in previous years now represents an economic stabilization? If anything it displays a stagnation, which is way different, but good wordplay, pal. The thing is – we know better than that. The public is waking up to the fact that these rates say much more about how the richer are still managing to profit as the rest of the economy is collapsing. Right now, an economic growth reveals more money on whose pockets? Not on ours, I’ll tell you that much.
This type of affirmation is sustained under the false pretense that the reopening of some businesses is what is solidifying the economy, when in reality, the economy is barely standing up on its feet, bending over on the Fed’s liquidity injections to survive.
We don’t need to try too hard to see this. If we distance ourselves a little from the big cities’ bubbles – where the large corporations and big businesses rule, and their strength through these times is being showcased to convey the narrative that everything is going to be just fine, meanwhile, bankruptcies are still skyrocketing – we could have a more realistic view of this circumstance.
Two months after the reopening, more than 50% of the shops remain closed. 80% of those were stripped bare. Accordingly, it is optimistically expected that less than 40% of all these businesses could have a chance to come back. On this note, the IHS Markit survey matches perfectly to the recent prognosis regarding the future of service businesses on the ground of the real economy…
Read the full transcript on our website: https://www.epiceconomist.com