CNN Money, IMF Blame “Freeze” for Exposing Unwarranted Optimism about U.S. Economy

Of course, they don’t admit that all their earlier economic predictions for 2014 were regime propaganda to get you to help stimulate the economy through delusional exuberance. No, no. The financial industry is full of objective and impartial witnesses who merely failed to predict… the weather.

You can’t make this stuff up. We live in society dedicated to patching illusions no matter how many holes appear in them.

CNN Money: “U.S. Economy: Not Looking So Good.”

When it comes to the U.S. economy, the glass just went from half full to half empty.

At the start of the year, economists were optimistic. Perhaps the economy would grow 3% this year, they said, instead of the measly 2% pace it’s been stuck at for the prior three years.

So much for that hopeful thinking. Half-way through the year, forecasts are being slashed. The latest Zorro move comes from the International Monetary Fund. The organization said Monday that the U.S. economy would only grow 2% this year, down from its earlier forecast of 2.8%.

I don’t have an economics degree, but I predict that we’ll come to view 2 percent as giddy exuberance before the year is over.

This comes on the heels of the World Bank announcement last week that it was cutting its prediction for the United States and the broader world economy. Many expect Federal Reserve policymakers to do the same downward revision when they meet this week.

So far so good. The obvious possibility (at least!) is that all these various organizations and experts are no better than pagan priests reading their hopes into the entrails of slaughtered animals while claiming to be able to foresee the future.

But that is unthinkable. No matter what happens, the people in charge of the money machine must never be questioned. We are always supposed to follow them no matter how many times they show they have no idea what they are talking about.

So we are told the reason the economy is so bad is due to global freezing!!!

What went wrong?

Blame it on the deep freeze that caused a very weak start to 2014.

“In the early part of the year, as a harsh winter conspired with other factors… momentum faded in the U.S economy,” the IMF said. Even though the economy is now starting to bounce back, the IMF doesn’t believe the comeback will be strong enough to completely offset the terrible first quarter.

Unbelievable. Even if we gave these people undeserved credibility and took their claim seriously, how does the U.S. weather explain the World Bank cutting back growth expectations for “the broader world economy”? So, somehow this freeze was global.

I thought global warming was going to destroy the world economy.

If CNN Money hired real journalists, they would shred these IMF fairy tale explanations. Instead they pass them on as assured wisdom. And people who are smart enough to drive a car put their brains into sleep mode because they ascribe prestige to establishment “journalism.”

Just how twisted is CNN’s economic analysis? Consider this:

The one bright spot supposedly came from consumers spending more of their money, particularly on services like health care. With Obamacare coming into effect, the Commerce Department assumed health care spending rose dramatically in the first quarter. Now, it looks like that assumption was flawed.

A Census report released Friday shows health care spending was far weaker than expected in the first quarter. As a result, economists are now forecasting the economy contracted at an annual rate of 1.5% to 2.4% in the first three months of the year, even weaker than the 1% contraction already reported by the Commerce Department.

I’ve posted about this before. Economists were hoping that Obamacare forced people to spend more money on healthcare. They think that would be good news. For those of us in the real world, the economy is tremendously better off when people have to spend less on healthcare and thus have more discretionary income.

These people are blind fools.

But they think you are bigger fools:

If there’s a silver lining in the latest downgrades of U.S. economic growth for 2014, it’s that many are still forecasting a pickup in 2015.

What? The same people that have proven they are failures at making predictions expect you to place your hope in their predictions. Could the scam be any more obvious?