Alright, here’s the latest economic report, and guess what? It’s all sunshine and rainbows, but is it really good?
So, here’s the rundown: the U.S. economy grew by 2.8% from July to September, with consumer spending bumping up 3.7%. But job growth? It screeched to a near halt, dropping from 254,000 in September to just 12,000 in October. The “official” story? Blame it on storms, strikes, and who knows what else. At least unemployment is holding at 4.1%. Meanwhile, inflation is finally close to the Fed’s target, meaning there might be some relief on interest rates soon—or so they say.
The New York Times is practically bouncing with excitement, announcing that consumers are spending, inflation is cooling, and the U.S. economy looks unstoppable. But when big media and regulators are happily singing the same tune, it’s probably time to raise an eyebrow.
Let’s dig a little deeper because these top-line numbers? They are not as shiny as they seem. Even The Times, buried way down in the article, admits the truth: housing is still way out of reach, with mortgage rates far from the good old days of 3%. The idea of the “American Dream” of owning a home is now a concept from the past.
But here’s the kicker. It turns out that previous job numbers have been revised. August was cut down by 81,000 jobs, and September was trimmed by another 31,000. And yes, this is a pattern. Every few months, we get these “great” reports, only for them to be quietly adjusted later. It’s almost like there’s a plan here.
Add to this the fact that some of this “growth” is artificial, boosted by businesses frantically spending to avoid an East Coast port strike that barely happened. Economists are already predicting slower growth in the next quarter. And while inflation might be cooling, it’s still higher than expected, meaning interest rate cuts might be off the table after all.
Bottom line? These numbers are likely to drop.
