MSM Pushing Turnaround for Economy

Economy Turning AroundBy Greg Hunter’s USAWatchdog.com 

Over the last several days, I began hearing a new description of the economy by the mainstream media (MSM)—“turnaround.”  I can’t tell you how many different ways this phrase was used, but it was enough to get my attention.  I don’t know who comes up with this stuff or where it is hatched, but I think this phrase is the new “recovery” term.  Remember when we started out with “green shoots”?  That phrase turned yellow and died.  Then, there was the “fragile recovery,” and that turned into just a “recovery.”  After that, we hit a “soft patch” and that was just “transitory.”  Now, we have moved on to the “turnaround.”  Is the economy turning around?  The data say no.   

Sure, we had a recent uptick in consumer confidence, and there was some improvement in car sales, but both are way down from their highs before the 2008 meltdown.  When it comes to home sales, well, the most recent numbers from the Case-Shiller index shows an ongoing disaster.  In the 20 city survey of home values, all but one market was down—Washington, D.C.  This is, of course, the home of the big spending government.  How much were home prices up there?–a whopping 1.3%.   The average year over year decline in the entire 20 city survey was a negative 3.4%.  Some markets, such as Tampa, Seattle, Minneapolis and Las Vegas, were down between 6% and 8.5%.  In Atlanta, home prices were down by nearly 12%!  (Read the entire Case-Shiller report by clicking here.)  

Please keep in mind, these declines are happening despite a 30 year mortgage rate of around 4%.  Many say this is an artificial rate that is being engineered by the Federal Reserve.  What do you think will happen to home prices when interest rates rise to a modest 7% level?  Can you say second leg of a housing crash?  I’ll say it again, what “turnaround”?   

The most recent estimates from the National Retail Federation are projecting holiday sales will be up 3.8% over last year.  (We will know the actual numbers in few weeks.)  I wonder how much of this increase will be attributed to inflation?  According to the official government number, it is running at 3.4% annually.  If you compute inflation the way the government did in 1980 and earlier, it would be 11% (according to Shadowstats.com.) 

Speaking of Shadowstats.com, the latest issue is not showing the “turnaround” the MSM is crowing about.  Here are two of the headlines from the most recent report that pretty much says it all:  “GDI (gross domestic income) Indicates No U.S. Economic Growth in Either Second- or Third-Quarter 2011” and “Durable Goods Orders and New Home Sales Show Stagnation.”  Are these the headlines that point to a “turnaround”? 

Finally, Sears waited until after Christmas to announce the iconic retailer will close as many as 120 stores.   CBS News reported yesterday, “Credit Suisse analyst Gary Balter says the softer-than-expected holiday sales performance point to “deepening problems at this struggling chain and renewed worries about Sears survivability.”  Balter added that Sears’ weakening performance may lead its vendors to start to worry about their exposure. If vendors stop shipping to a retailer or start insisting on cash up front, it can spell the end.”  (Click here to read the complete CBS News story.)   

I heard one analyst, this week, predict Sears would be forced to file for bankruptcy in 2012.  I hope he is wrong because I like them; however, I realize Sears is not having trouble because it is selling too much stuff and making too much money.  This may be anecdotal evidence of a failing economy, but when a 125 year old retailer is fighting to stay afloat, I think it speaks volumes about the real economy.  I wonder how long this “turnaround” is going to last.

Comments
  1. Matthew Nereim

    You’re a great man Mr. Hunter. Many of us who are awake are starving for some legitimate information…wherever it leads to; so long as it’s the truth! I have turned off the MSM and boycott cable news. I found myself yelling @ the tv too much when I would hear the crap spin and outright BS! How sad is it when Jon Stewart looks like an investigative reporter in comparison to the Hannity’s etc? Keep up the great work and know that people like me appreciate your service very much!

    • Greg

      Thank You Matthew for the comment and support.
      Greg

    • Greg

      Thank You Matthew for the comment and support.
      Greg

  2. PatriotRider

    Greg:

    I can answer yur question….”I wonder how long this “turnaround” is going to last?”

    …until they find another suitable word to replace “turnaround”

    Keep up the good work…

    • Greg

      PatriotRider,
      Sharp, funny comment. Thank you.
      Greg

      • Wayne

        Greg….I’m surprised no-one has mentioned the recent report that the Nat’l Assn. of Realtors had been ‘massaging’ their sales figures from 2007 to very recently. In many cases, some sales were counted twice to give the impression housing activity was much stronger than the reality of the situation. The good news is we can now add the NAR to the list of other public entities that can’t be counted on for the truth as we’ve seen in areas like unemployment stats, cost of living, # of illegal aliens in the country, etc. Just disgusting.

        • Greg

          Wayne,
          Good point. I brought this up in a recent post, but thank you for making this very important point about the spin job we are all getting.
          Greg

  3. norcar survivor

    Hey Greg and Happy New Year
    I was driving through Winston Salem this weekend to see family and was amazed at the number of, not only store fronts that were empty, but whole shopping developments. I do not get out in that area very often since loosing my job in May, so it was significant to see lines of store fronts missing their signage and empty parking lots. Oh for the days when you could depend on the news to inform. There WAS a time when one could see something of importance and know that in the soon coming news story it would be explained. Now I see what I see and am told that I don’t know what I see. It is sad to watch the grandparents of industry become ill knowing their days on this planet are now numbered. How gullible we have become to sit idlely by and accept this hogwash we get for news as fact when all we have to do is look at our own bank accounts and receipts or just to listen to the conversations of friends and family at this Holiday’s Seasons events. Talk or hiring is not present nor is there positive talk of financial turnaround. The TVs and radios continue to spout their gibberish, but our heartbeat of America is missing a beat and the defibrillator Cart is waiting around the corner. Our conversations do not reflect a turnaround theme unless you count turning around and going home from the mission food pantry.

    • Greg

      Thank you NC for the comment and real world reporting from the Tar Heel State!!!
      Greg

      • Art Barnes

        Wow, thanks for the east coast reality. Here, out on the western front things are just as bad or worst. Really enjoyed your thoughts. A.B.

        • Greg

          Thank you Art.
          Greg

  4. Art Barnes

    Greg, holiday sales increase due to inflation & deep price discounts from the retailers which did create an uptick in sales but also an overall profit squeeze as a result of the discounts. Many Americans who needed regular everyday stuff waited till Christmas to buy because of the discounts making a percentage of holiday shopping not holiday related which will take away from future sales in 2012. You can’t shame the MSM as they are now part of the elite class and are going out of their way to protect the elite of which they have become. History records the poor journalist and editors working for a story with holes in the shoes, look at them now in limos & dinners out at the expensive clubs of New York, not to mention the White House. Make no mistake about it the MSM are not the friends of the basic working American man or women. We need to change their name from MSM to ESM (elite stream media).

    • Greg

      Art,
      Thank you for the comment and analysis.
      Greg

  5. AndyB

    Great post, Greg; Goebbels and Bernays are laughing at the cluelessness of the American people as to the amount of propaganda generated by the government that is being promulgated by a complicit MSM. Those of us non-believers are probably already on the list of demestic terrorists.

    • Greg

      Andy B,
      I hope not but who knows?
      Greg

      • Art Barnes

        You can bet that sights like these are drawing attention from the various government agencies. What those agencies will not admit I surmise is that the bloggers herein for the vast most part are patriots.

  6. ONTIME

    From what I see the MSM is burying it’s big head in the sand and printing every government lie that is passed to it, MSM is a continual government BJ to soothe the publics growing angst and anger for the constant mishandling of all things domestic and foreign.
    The old adgage,”Believe half of what you see and little of what you read in the MSM.”

  7. Stan H

    Most of the informed blogs appear to be saying that there is a deflationary trend developing in Europe that appears to be spreading to the United States. There seems to be a pattern that every additional round of quantitative easing sets off more deflation. I learned in Economics 101 that when central banks create more money, there is an initial rush of prosperity followed by rising prices. This has clearly not been the case since the economic crisis began over 5 years ago. My suspicion is that the pattern that I mentioned comes as a result of design by the central banks. The design would be a very elaborate one and would include a lot of jawboning to give markets the impression that something substantive is being done, when in reality there is nothing but talk. It would therefore be useful for the readers if economic commentators would address this problem and explain where did all the money, that had supposedly been created, go?

    • Greg

      Stan H,
      in a few words derivatives and sour debt. lots has been done and we are seeing inflation in everything but real estate (there we are seeing deflation). There is deflation in the EU but in the end they along with the U.S. and the rest of the Western world will print money (create currency) to save banker bacon.
      Greg

  8. David Conrad

    Hi Greg,

    Saw you on Kitco.com today. Great insight. Keep up the great work!

    • Greg

      Thank you David for the comment kind words and above all your friendship.
      Greg

  9. John

    ” I wonder how long this “turnaround” is going to last.”

    Considering the recent “private” strategy meeting of numerous select MSM reporting members at the White House, I would expect we will be on the receiving end of this propaganda until after the 2012 elections.

    • Greg

      Spot on John.
      Greg

  10. Elihu Wygant

    Greg;

    As have you, I’ve been watching and predicting the inevitable fall of the economy in this country (as in the world) since the early 2000′s. Thankful for listening to Jim Sinclair since 2003, I’ve prepared as well as I can in this, my retirement years. I must say however, I’ve never witnessed such a “slow train wreck” in my 70 years, as our totally corrupt government utilitizes TARP,MOPE, etc., and using the MSM as a mouthpiece, has snookered the majority of the population!

    I really have no doubt that ‘the fall’ is coming; but when? If I knew that, I’d be God (I say that with all due reverence), and I’m about as far from being Him as possible!

    Great columns; keep up the good work…

    Eli

    • Greg

      Eli,
      Thank you for your comment.
      Greg

    • M SMITH

      Elihu W., I to am so glad I found Jim Sinclair, it was from his site I found about Martin Armstrong. The hell he was put through by our corrupt court system may be what many will face themselves in the future. What is really sad that millions of Americans do not know nothing about what Martin went through & why. Right now the people who are watching the price of gold & silver falling like a rock may feel as if they need to sell, some at loss, but they should hold tight as Jim has been saying & I agree with him & if you have the extra money it’s a good time to pick up more PM’s because nothing has changed, the economics has turned to deflation in Europe & the USA. Martin answers question about Gold & he said he would get hate mail from the gold bugs, but he’s right, the Fed’s QE has failed & we will not see the real inflation in the U.S. until U.S. Bond offerings go unsold in the USA. Martin’s own words,’we are reaching the point of maximum entropy(inevitable social decline and degeneration) where everyone who thought of buying has bought & in the correction will likely to shake the tree’! I suggest everyone to sign up for email updates from his site at http://www.armstrongeconomics.com/writings. I depend on Greg, Jim, Martin & others to get the real truth that the MSM fails at, it seems the MSM is also the main propaganda machine for the powers that be and the web sites they use to also spread false data to keep Americans confenced we are in danger of being attacked by 9 men & a camel. When the real danger has been with in, the international & domistic cartel of progressive banking families who are the owners of the private for profit federal reserve & a the central banks of Europe. I almost left out the fact they now have control over Lybia’s CB!

      Today there is good article on http://www.thedailybell.com titled “The Deflationary Debt Trap” the article lays out what we may see in 2012. Well worth the time to read, gold is talked about in the short term & long term as is bonds, stocks & the markets. It seems the Daily Bell has more great stuff about SOPA, NDAA today to add to todays news, a guy has made a you tube video that links who is really behind SOPA with huge amounts of money they have spent on lobbying congress, does CBS, CNET rings a bell? It should, I think FB will be a good place to for this video to land and spread like a wild fire in Soouthern CAL.

      Well the MSM is all about gold today, down & up & down again. Some say gold will drop to $1200, then some say no way, who is right? In a non free market who knows!
      Have a great New Years!

  11. jay

    The money incirculation did not dissapear…it just changed ownership.
    We should not expect the christmas spending numbers to change,just the number of people able to spend.
    slavery never left..it just changed its ugly face to a more desirable one.
    debt = slavery

    • Greg

      Jay this is big! Thank you for the content!!
      Greg

  12. BigTom

    Greg – Thank you for your continual postings. I always know something of interest will be on your blog. Myself? I quit TV and MSM last feb. 1st, 2011. Could not take all the lies on financial news broadcasts and all the other crap programming anylonger. I finally refused to help support them with my monthly satellite television payments. I do emphatize with Matthew Nereim’s above comment. It is amazing how ones perspective on life and events clears up so soon after cancelling television service! The ‘it all makes sense now’ philosophy soon becomes evident without all the murkiness being spewed out daily from the ‘fog machine’…..Happy New Year!

    • Greg

      BigTom,
      Thank you for coming over to this site and others like it.
      Greg

  13. Geoff

    Greg:
    think about Sears and Illinois, where just last week Illinois gave Sears a tax “stipend” to keep its HQ in suburban Chicago (which resulted from the tax increase early this year).

    Illinois is likely insolvent now. Not paying vendors to pay pensions and the pensions were already funded for this year by borrowing. Wait a couple of years when pension funds are depleted and there is literally no more money or taxing ability. While the teachers and other retired public workers suffer, Illinois will suffer as a whole as people have less to spend and we know where that goes.

    Can’t have a turnaround, without a “turnaround” artist–the businessmen who come in and do what they have to do to keep a business running, just (not) like the super duper deficit committee, or Congress or the White House

    • Greg

      Geoff,
      You need to reform the banks and financial system. We need to stop bailing out the bankers and they need to be taken to receivership. That will be tough and ugly, but until that happens you cannot fix or turnaround the economy. The playing field needs to be level in the brokerage end not rigged so Wall Street always wins even when they make wrong bets. Thank you for your comment. It was a good one.
      Greg

  14. tony bonn

    those catch phrases you mention are talking points issued by the cia…bill colby – before his murder – bragged about the cia controlling every significant news agency through plants, operatives, and other means…

    these phrases do not hatch spontaneously….no truly independent news agency would speak in close unison with others without some coordinating measures…(and no, they don’t read each others’ copy)

  15. josh

    i don’t think a little cheer-leading is a big problem. if they want to write about imaginary turnarounds, it doesn’t bother me much. what scares me is what they don’t report or bury in the back pages. for example, why is no one following up on mf global? there has to be an electronic record of where the missing money was transferred. was it fraud or re-hypothecation?

    there was a great interview on npr with glenn greenwald, the author of “with liberty and justice for some.” he gave a brief history of our two tiered justice system and explained how the financial elites have become immune to prosecution.

    • Greg

      Josh,
      The government should be putting under indictment not just asking them some casual questions in front of Congress. This is like the WWE, but at least there we know the whole thing is theater. Thank you for the comment.
      Greg

  16. Steve

    Greg, Thks for the straight talk. I have an ear for MSM talking points and key words too. Fave was “ring fence” said with authority by idiots whose only real skill is talking without understanding. Ghandi said, “one man speaking the truth constitutes an army.” Thks for being the army.

    • Greg

      Thanks Steve for your kind words and support.
      Greg

  17. M SMITH

    Armstong has released two pieces I would say is very important about gold & the MSM, NDDA ,SOPA & more. Thanks. MLS

  18. Richard

    I don’t think you’ll see a real turn around in our economic model until they do what they did last time. Jack the interest rates sky high. That way they will be able to lower them over decades again and cause the same types of problems all pver again in 30 years. The biggest problem with that is getting price inflation to run out of control so they can raise the interest rates sky high.

    They’ve clearly proven that “printing” won’t do it. The banks just play all of the money between themselves. How to get the money into the real economy and cause inflation is the hard part.

  19. Linen Ghost

    I am reaching the point that many here have, namely to refuse to watch MSM for any news coverage whatsoever.

    How about the saber rattling over the Straight of Hormuz? I have read estimates of $140 to $250 barrel(s) of oil (and this is probably WTI when the real determinant for us is Brent).

    All this money creation, Italy debt bond auctions and still Gold and Silver get pounded down in the most blatant display of manipulation I have ever seen. Please, somebody correct me if I am wrong about this.

    When the ‘whip-saw’ happens it is going to be one for the ages; also, anybody notice the ever increasing number of ‘pundits’ on all the MSM shows and the ‘plunging necklines and expanded bustlines’ of the female MSM members? Just an observation, 2012 is going to be beyond belief.

    • George Too

      You are 100% correct about manipulation of the PM markets in addition to oil and the stock markets. Ever wondered why Goldman and others can program trade? Or why it is legal for congress to trade on insider information but you or I can’t?

  20. Jan

    Turnaround, isn’t that just another word for spin? I will have to decide whether I am reeling, spinning or simply turning around over MF Global. I don’t know, but it sure makes sick that no one is going to jail.

    How many other MF Global’s are out there? How can we have faith in any financial institution if the the crooks win and the people lose their money and the CEO’s get to go skipping off into the sunset scott free?

    How many MF Global’s does it take to create panic?

  21. slingshot

    No matter how you look at it or what you call it, a turd is still a turd. The fox is in the hen house and the wolf is wearing sheep’s clothing. Anyway you describe our destiny or our future, we are in trouble. What would you expect from a house of cards built on a foundation of lies. You can forget about Truth and start worrying about TRUST. Trust, another part of the equation and to point out, would you trust someone who LIES? Maybe lies is too strong of a word. How about mislead? They tell you one thing and do another. You know like pumping up the stock, while the insiders sell. ENRON anyone? How about old Blago selling that Congress seat. No lies there. Bernie Madoff, proves that the rich can not trust the rich. Even those who sell the virtues of Home and Family, end up screwing around on their spouse and send pictures of themselves on the internet. We are becoming the laughing stock of the world.
    TURNAROUND? Just ask those people from SEAR’S One heck of a turnaround for them. Oh, the Green Shoots? Lots of them growing up around the vacant homes and businesses in my neck of the woods. They are called weeds.
    Call it what you want. You know what it is.

  22. Todd

    The great turnaround probably stands on the sucess of the government monopolising and wiring every business left standing along with very obedient employees…. work is no longer like family , its robotic. If you have a brain capable of thinking for yourself ,youll end up on the streets.

  23. George Too

    Greg,
    Great article. John Williams has report 410 out…GAAP [generally accepted accounting principles] based deficit for 2010 & 2011 plus unfunded liabilities…money expected to be paid out but that we have no money to pay for topping world GDP [80 trillion]. I am a little more than a decade away from retirement but I am not expecting my social security check to buy more than a cup of coffee [McDonald’s not Starbucks]. I may get what they are promising but it won’t be enough to do much with. Thanks for reporting the real news.

    • Greg

      George Too,
      Inflation is the answer according to government actions. They know they are killing the dollar. That’s all they got. Thanks man for all the comments in 2011.
      Greg

  24. George Too

    PS I heard on Bloomberg that they might have to raise the debt ceiling another trillion. you know, a trillion here, a trillion there; sooner or later it adds up to REAL money

  25. Denarius

    Lucky for me my TV got stuck in “mute” some years ago.
    The eye-candy greatly improves when you can’t hear the
    vapid nonsense spewing from their sensuous mouths.
    The standard for success in that industry used to be the
    minutes of “face-time” you got in each segment. Now
    it appears the standard is the minutes of “breast-time”.
    Propaganda must be made attractive to be effective.
    But I digress.
    Contining “thanks” to you, Greg, for your continuous
    stream of relevant articles cutting through the MSM fog.
    Many thanks also to the growing number of commenters
    who add so much to your website. Great job of editing
    the losers who must inundate you with their special
    brand of “content”. That could be an article by itself.

    • Greg

      Denarius,
      Thank you for the comment and support. I got to tell you, I don’t “trash” that many comments. Actually, very few, and I think that is a measure of the quality of the people who comment here.

  26. Herman Gerbils

    Why I remember a doe eyed Erin Burnett cooing “it’s a new economy and the old rules don’t apply”, to which I would always reply “B.S., companies that have not turned a profit have no business buying Super Bowl ads”! And I have been musing about explaining the concept of Sears (and pets for that matter) to the grandkids someday “they sold everything, you could even buy a house from them”.

  27. kenny

    The liberal media is an insult to anyone with brain activity….. they’re corrupt propaganda needs to be exposed for the blatant lies that they are……..we are thankful for the fine work you are doing to accomplish that task……..i’m sure our psycho leaders will not continue to allow you to shed the light on there bs…….be careful…..we are dealing wi psycopaths in suits and they take no prisoners

  28. Greg Strebel

    And to think that the current dismal level of economic activity is being supported by $1.4 TRILLION (!!!) of spending which should not even be there, since this is ‘funded’ by government deficits. Cutting government expenditure back to meet revenue is not Austerity, it is Living Within Your Means. The sheeple of the ‘advanced’ economies have expectations totally beyond rational justification. Governments will delay recognition of the root of the problem via money supply expansion, to the vast profit of the elite cronies, but in the process gutting the goose which lays the golden eggs, the productive workers, savers and entrepreneurs. Unfortunately, some parasites can survive nicely on their host for some time after the host has expired.

  29. Mountainaires

    Anecdotal evidence: I went to the Sears at a local mall recently to get a few things; I was looking for a Christmas gift for a relative in the Housewares department. I was SHOCKED at the warehouse-like displays, and the lack of goods in the department as a whole. It looked to me like they were gearing up for going out of business. They didn’t have many products and the place was empty. I think we might be one of the Sears stores that will soon close. They’ve already closed our local Sears outlet venue, which is where we take our Sears products that need maintenance or repair. Not looking good for the venerable old retailer, and it’s sad.

    • Greg

      Mountainaires,
      Thank you for the real world reporting.
      Greg

    • Kmac

      Haver you noticed that you can buy Craftsman tools at stores other than Sears now?

  30. Sean

    The MSM is still a great source of information. If you want to know what the government and Wall Street want you to think and believe, just grab your remote and tune in to their mainstream programming. Those who understand how our primary reasoning and thought processes work (unconsciously) can get you to believe.just about anything if you give them the opportunity. For example, MSM can deliver a great new war in Iran, just like they provided us in Iraq. All we need is enough media and government hot air to repeat the stories and the fearmongering long enough to make people naturally believe that Iran and Muslims are a threat. When this disinformation is fed to us often enough that it becomes self-evident truth (deeply held beliefs that no longer require evidence), it becomes very easy for them to sell us on a war and convincing us that we’re the good guys. A savvy viewer can use MSM as an intelligence gather tool to understand who is working against the US Constitution, who is working against the American people, and what they want or expect Americans to support or agree with. To me, the MSM is an invaluable tool to measure how this is being achieved and what the globalists are doing – plus understanding what they are hiding from the people by the news that they omit from they’re reporting.

    • Greg

      Sean,
      Good point man!!!
      Greg

  31. Just the Facts

    All you really need to know about the subjective reality of “news” MSM style is:

    1. Everything is a crisis and therefore an opportunity to promote “the cause”(even when its botched) , 2. Don’t let the truth get in the way of the story(Lie, opine or modify history itself-it’s all good) and 3. Remember your readers are dumb so don’t address the w’s -boil it down to an emotional appeal or political correctness.

    Thank goodness for USA Watchdog!

    • Greg

      Thank you Just the Facts!!
      Greg

  32. Black Talon

    Greg “turn around” is the perfect buzz word for what they have in store for “We the People”. Phase One: is the “turn around”, Phase Two:Is the “bend over”. Thanks for all you do Greg. Great to hear you on Coast to Coast !

    • Greg

      Black Talon,
      I find it hard to disagree with your analysis!! Thank you.
      Greg

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