Alternative Visions – US GDP Revisions + A Tale of Two Debt Deals-Greece & Ukraine – 08.28.15

Jack examines the big swing in the revised GDP figures for the 2nd quarter, and raises questions about the US Government’s ability to adjust for seasonality in the figures. How is it that every year for the past four years, the US economy (and GDP numbers) collapse to near zero or less in the winter and then surge above average in the spring-summer? Can it be just coincidence, occurring now four times? How reliable are GDP numbers, in the US and globally (China, India, Europe?). Jack then looks at the details of the recent revision, concluding that business inventories, net exports, and commercial building number swings have good reason to doubt the veracity or continuity of the numbers.  In the second half of the show, the recent debt restructuring deals just concluded in Greece and Ukraine in recent weeks indicate a new kind of colonialism may be emerging in the periphery of Europe, where debt is used as the ‘product’ by the colonizers to extract wealth and an income stream from the ‘colony’ by means of financial asset transfer instead of direct low wage and low cost production of goods—as in the case of past forms of colonialism. Jack reviews in detail the recent Memorandum signed by Greece and the Troika, which not only reveals even more austerity but now a direct management of the Greek colony economy to ensure payments on the $400 billion plus debt continue to be made. Direct management is a new feature of the new ‘inside’ colonialism. Direct management is even more blatant in the case of the Ukraine deal, Jack explains, where former US and EU shadow bankers now run Ukraine’s economy on a day to day basis. Depressions will get worse in both countries and more debt restructurings are inevitable.

 

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