The comments below are an edited and abridged synopsis of an article by James Rickards
The US Commerce Department has reported that second-quarter GDP for the US rose at a 6.5% annualized rate.
From 2009 to 2019 (the recovery from the 2008 global financial crisis), the average annual growth in GDP for the US was 2.2%. So, in comparison with the previous recovery, 6.5% seems like exceptionally strong growth.
The The New York Times and other mainstream media outlets celebrated because Q2 output has regained 2019 levels. But the recession was over in April 2020. It’s now August 2021, and they’re happy that we’re back to 2019 levels? That’s a pathetic rebound and really nothing to celebrate, and Rickards takes a closer look at the numbers.
Up for discussion: Less than meets the eye; not a recovery, but a disaster; the gravy train has stopped; landlords have bills to pay too.
“This will be one more headwind for the economy, as both tenants struggle with housing costs and landlords struggle with a surplus of property for rent. It’s one more example of the unintended consequences of government intervention.”
“Of course, the stock market is still in bubble-land and in denial about all of this technical data. That won’t last. The stock market may continue to float for another month or two, but by October, a severe correction may be in the cards as new data make it impossible to ignore reality.”