Annual Boom of 5.7% in October Real Retail Sales Was Not Credible; Related Retail Employment and Consumer Goods Production Continued in Annual Decline, Despite the Gain in Freight Activity
I've yet to find someone who has been able to reproduce the claims made by Shadow Government Statistics about the extent to which government agencies are grossly misreporting the U.S. inflation rate. (2) April 27th (Bureau of Economic Analysis), also see Note 17. SHADOWSTATS DAILY UPDATE - May 1st to May 3rd A major Subscriber-Only e-mail update is pending for later today. The aggregate Monetary Base often moves broadly on a parallel basis with the Money Supply, but it also can vary widely with the Money Supply, tied to the dominance of its movements triggered by Bank Reserves held by Federal Reserve Banks. ShadowStats and the 'Alternate Inflation' Myth - US News In the end, the Fed has little choice but to support the banks and to let inflation run its course. (17) March 30th (Bureau of Economic Analysis BEA, See Note 2) -- Third and Final Estimate of Fourth Quarter 2022 (4q2022) Gross Domestic Product (GDP) [The GDP Alternate Data Tab has been updated] - In continuing downside revision, the third-estimate of inflation-adjusted real 4q2022 GDP revised lower to an annualized quarter-to-quarter gain of 2.57%, in its third and final estimate, from its second estimate of 2.68%, and its initial estimate of 2.89%, versus 3.24% in 3q2022. The initial headline annualized quarterly estimate of inflation-adjusted First-Quarter 2023 Real Gross Domestic Product (GDP) showed doubly negative patterns of activity. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. How Accurate is ShadowStats on The Understatement of US Inflation With ALTERNATE DATA TAB [See the Menu Bar above] provides the latest headline numbers and exclusive ShadowStats Alternate Estimates and related Graphs of CPI Inflation [April 13], GDP [April 27], Unemployment [April 7], Money Supply [April 25] and the ShadowStats Financial-Weighted U.S. Dollar [January 10]. Where monthly jobs growth in the key Manufacturing, Retail Sales and Construction Sectors has turned flat-to-minus, the Leisure and Hospitality Sector showed continued strong, albeit slowing monthly growth, still holding shy by more than 2% (-2%) of ever recovering its pre-Pandemic level of activity. Separately, extended full coverage and graphs of both the Money Supply and Monetary Base and their components follows in the pending Subscriber-only Daily Update E-mail. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation. Informal Economy Sizes. That said, there have numerous stories in recent months of misreported, headline employment gains. By its very nature, the shadow economy is difficult to measure. 1461] -- The 2020 Economic Collapse Remains Far from full Recovery. An old friendthe late-Doug Gillespieasked me some years back to write a series of articles on the quality of government statistics. Year-to-Year Gain in Monthly November M1 Jumped to a Record 53.2% from the Prior Record of 42.3% in October, Surged to 65.6% in Week-Ended November 30th U.S. Dollar. Despite a small monthly narrowing in the headline March 2023 Unemployment Rate, details remained consistent with an unfolding recession. January 2021 Annual Growth in Money Supply M1 and M2 Surged to Respective Record Highs of 69.7% and 25.8%, Despite Some Downside Benchmark Revisions The 2021 Financial Report is available here: https://www.fiscal.treasury.gov/reports-statements/financial-report/current-report.html -- ShadowStats will provide extended analysis in an updated Hyperinflation Commentary, which will post subsequent to the pending Commentary No. "John" Williams was born in 1949. Despite numerous, separate indications of the economy stalling or turning down anew (see the earlier GDP, Consumer Sentiment, New Orders for Durable Goods, Industrial Production, and Construction Spending), such broadly is ignored at present. March 7th builds: Power up the pink archer. ShadowStats' John Williams: Why inflation now is really 13.5% - KITCO Chairman Powell backed off talk of mandatory, continuing FOMC Rate Hikes to kill Inflation, by killing the economy with high Interest Rates, noting that perhaps the Banking Crisis might slow the economy, and help to contain inflation. Weakening U.S. Dollar, Rebounding Gold and Oil Prices Foreshadow Rising Inflation, Four Million Unemployed People Are Missing from the Headline Labor Force Where current inflationary pressures appear to be tied to excessive Monetary stimulus out of the Fed, not due to an overheating economy, still higher interest rates, now, would do little to contain inflation, while at the same time higher interest rates would continue to impair economic activity. Increases have continued across-the-board into early April 2023. Revised year-to-year growth slowed to 0.88%, from 0.91% and an initial estimate of 0.96%, versus 1.94% in 3q2022. (6) April 24th (Census Bureau). For the month of February 2023, the real Deficit deepened to -l04.6 billion. Unemployment. Read more about the World Economics Informal Economy database. (10) April 14th (Census Bureau, Bureau of Labor Statistics, St. Louis Fed, ShadowStats) [See the Opening Comments on the April 24th annual benchmark revisions to Retail Sales, which continue to show flat to negative annual contractions and quarterly contractions, net of inflation.] March 2023 Money Supply numbers and historic tables have been posted and graphed to the ALTERNATE DATA TAB (see the Menu Bar above), with more extensive analysis, graphs and coverage following in the DAILY UPDATE e-mails and in pending Commentary No. Noted the by the U of M, Despite the increasingly negative news on business conditions heard by consumers, their short and long-run economic outlook improved modestly balanced by worsening assessments of personal finances due to higher expenses, reflecting the ongoing pain stemming from continued high prices. [Go to http://www.sca.isr.umich.edu for the full details.]. While the headline number usually is the seasonally-adjusted month-to-month change, the formal CPI is reported on a not-seasonally-adjusted basis, with annual inflation measured in terms . COVID-19 vaccines and improved treatment have helped to stabilize a still-disrupted level of economic activity, again well shy of a fundamental, full recovery, yet Pandemic issues, including new variants and vaccination controversies, continue. Under current policy and based on this reports assumptions, it is projected to reach 701 percent by 2096. Including Commercial Aircraft, aggregate New Orders recovered pre-Pandemic levels in Third-Quarter 2020. March 2023 Money Supply activity reflected a continuing and intensifying 55-year record-high flight to liquidity in Basic M1 (Currency plus Demand Deposits), with Basic M1 notching higher to 35.0% of the aggregate headline Money Supply M2, its highest proportion since the same level in April 1970, a 53-year high. Near Record Growth of Currency in Circulation Foreshadows Inflation Risk What are Shadow's specs? Against its Pre-Pandemic Trough (PPT), ShadowStats March 2023 Basic M1 (Currency plus Demand Deposits [83% of the old pre-May 2020 M1]) moved higher to 120.5%, from a revised 119.8% (previously 119.3%) in February, still shy of its historic peak of 123.2% in August 2022. Part II --REGULAR ALERTS - Weekly Review: ECONOMY, MONEY SUPPLY AND INFLATION ALERTS: Broad Economy continues in downturn, amidst spiking Inflation. That said, again, Fiscal Years 2021 and 2022 (FY 2021, FY 2022, FY 2023) circumstances and prospects have continued to deteriorate meaningfully, at an accelerating pace, from conditions at the end of FY 2020 (see the next paragraph), exploding anew into the still unfolding, disastrous FY 2023. Williams told David Lin, anchor for Kitco News, that the true headline . Noted frequently here and discussed subsequent to earlier FOMC Meetings (March 22nd was the last), little has changed: The Federal Reserves Federal Open Market Committee (FOMC) hiked the targeted Federal Funds Rate March 22nd by the expected 0.25%, to a 15-year high level of 5.00%, hoping still to induce an imminent Economic Recession, which otherwise already had been in play and deepening for some time, due to earlier rate hikes. SHADOWSTATS SUBSCRIPTIONS Economic and financial issues raised here are reviewed more extensively, along with exclusive graphs, and expanded economic, financial market and monetary assessment in subscriber-only Commentaries [monthly going forward], and more frequently on a timely basis in the subscriber-only e-mails of daily changes in the DAILY UPDATE (as the news breaks, see the prior paragraph). ShadowStats is Williams' attempt to provide an alternative to the official consumer price index (CPI), which he views as a flawed measure of what members of the general public have in mind when. All previous Commentaries are available in, or accessible from, the upper left-hand column of this www.shadowstats.com Home Page. The growth of the shadow economy can set off a destructive cycle. Holding Physical Precious Metals Remains the Best Hedge Against Developing Inflation and Financial-Market Turmoil, Pandemic-Driven Unemployment Soared to an April 2020 Peak of About 32%, Worse Than in the Great Depression; Such Was Against a January 2020 Pre-Pandemic U.3 Unemployment Rate of 3.5% Suddenly, their model stopped working, and they asked me if I could fix it. and growth As repeated here frequently, raising interest rates sharply now only pummels further an already moribund economy, it does little to contain the Feds current monetary inflation problem. (16) April 3rd (Census Bureau) February 2023 Real Construction Spending) - Despite the usual upside revisions to the prior two months of reporting, February 2023 Real Construction Spending showed its 17th straight month of year-to-year decline (down by 9.5% (-9.5%) from February 2022) [see Note (4)], with First-Quarter 2023 activity track for its fourth consecutive quarter-to-quarter decline, and its sixth consecutive quarterly year-to-year decline. 1461. Please note with the ALTERNATE DATA Tab, that the Money Supply annual growth rates after February 2021 instead are against the February 2020 Pre-Pandemic Level not year-to-year (although both measures are plotted in the subscriber-only graphs). ShadowStats.com (@shadowstats) / Twitter ET) and Press Conference (2:30 p.m. 1461 soon. Republishing our charts: Permission, Restrictions and Instructions (includes important requirements for successful hot-linking) Again, with the recovery from the Pandemic-driven collapse still flub-a-dubbing, continued extraordinary Monetary and Fiscal Stimulus likely will continue well into 2023, despite Financial-Market huffing and puffing to the contrary, and bi-furcated FOMC happy hype. Noted the by the U of M, Despite the increasingly negative news on business conditions heard by consumers, their short and long-run economic outlook improved modestly balanced by worsening assessments of personal finances due to higher expenses, reflecting the ongoing pain stemming from continued high prices. [Go to http://www.sca.isr.umich.edu for the full details.] Yet, as discussed here frequently, the problem inflation largely is being driven by the FOMCs still explosive Money Supply and System Liquidity growth, not by an overheating economy. March 2023 Industrial Production, Manufacturing and Capacity Utilization showed meaningful downside benchmark revisions to previously reported activity, but continued in a third month of upturn in context of Federal Reserve regular overestimation of headline Industrial Production. 1461. Understate inflation and you end up overstating the Real or inflation-adjusted level of growth in GDP. B U S I N E S S .. C Y C L E -- RECESSION-DEPRESSION TIMING Updated September 21, 2021 [Full review and update pending in No. On Top of Downside Revisions, Declining November Real Retail Sales Showed Renewed Economic Deterioration Consumer Inflation: Official vs ShadowStats - BMG
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