I find it interesting how the statists, Keynesians, and the rest of the buffoons are in complete denial of the global recession we’re in. It’s weird! It’s like they refuse to admit that printing money and government spending can’t make an economy go!
So today, we see this couple of stories.
The pace of growth in the U.S. manufacturing sector slowed in October, remaining at its lowest level since May 2013, according to an industry report released on Monday.
The Institute for Supply Management (ISM) said its index of national factory activity fell to 50.1, its fourth straight monthly decline, from 50.2 the month before. The reading was just above of expectations of 50.0, according to a Reuters poll of economists.
A reading above 50 indicates expansion in the manufacturing sector.
The employment index fell to 47.6, the first time below 50 since April and its lowest level since August 2009. Expectations called for a reading of 50.1.
New orders rose to 52.9 from 50.1. Prices paid was up at 39.0 from 38.0, compared to expectations of 38.0. ……
… The government reported the economy grew at a 1.5 percent annual pace in the third quarter, hurt by business efforts to reduce an inventory glut and continued spending cuts by energy firms. A strong dollar also hurt the economy.
Data last week suggested consumer spending lost momentum at the end of the third quarter, with consumption in September posting its smallest increase in eight months. A report on Monday was expected to show a further slowdown in factory activity in October. ……
Yes, as reported by yours truly, many times, when businesses and industries report increasing inventories, it’s always a bad sign.
As noted above, there’s more news ……
BEIJING (AP) — China’s manufacturing contracted for the third consecutive month in October in a sign of weakness in the world’s second-largest economy, official data showed Sunday.
The National Bureau of Statistics said that China’s purchasing managers’ index was 49.8 for October, the same figure as September. A PMI reading above 50 indicates an expansion of manufacturing activity while those below 50 indicate contraction.
The official non-manufacturing PMI, which gauges the services sector, was 53.1 percent for October, down from September’s 53.4.
The Chinese government has cut interest rates six times in the past year to shore up economic growth that slowed to 6.9 percent in the third quarter.
The Chinese economic slowdown comes as Beijing tries to move the country away from an overreliance on exports and often-wasteful investment in housing, factories and infrastructure projects. It has unnerved investors around the world, hurt countries that had prospered by supplying China with raw materials and weighed on global growth.
I don’t care what the “experts” or state spokesmen say. There is absolutely no way in heck China’s GDP grew at 6.9% while their manufacturing contracted each month of said quarter. China’s economy is based upon manufacturing, when it contracts, so too, does their economy. It would be a dubious claim that China’s economy grew at all during that period, much less by 6.9%.
Manufacturing is a key element of total production and wealth creation. Forestry, agriculture and fishing, and mining are the other key elements. All wealth creation is derived from these elements. Demands from manufacturing is what drives forestry and mining. There’s no point in taking it from the ground if no one needs it.
Here’s a prediction …… if they can hold off reporting reality for that long, the LSM will happily report economic reality as soon as a Repub is elected POTUS.
But, we’ve never escaped the grasp of the last recession, and all of the supposed cures for our ailments (printing and spending printed money and ZIRP) has failed. Interest rates should always be set by market demands and risk. Arbitrarily lowering interest rates is simply folly. Printing and mindlessly spending money doesn’t stimulate anything but devaluation of currency and increase in real debt.
All the while, we’re prohibiting private sector investment in real wealth creation. The private sector offers $billions for a pipeline infrastructure upgrade where the transport of oil would be cheaper, safer, and more efficient? Naw, we don’t want that! A mine in Alaska which has the most gold and copper the US has ever known? No!!!! Shut it down before it starts!!!!
Reminds me of a song! ……..