Smoke And Mirrors

It seems every time there's an increase in a particular sales statistic, the experts will point and gleefully announce that it is a sign the economy is improving. In reality, one data point is not a trend, so all they are doing is using the data to apply reverse psychology to make sure people don't panic. People have to keep spending since domestic consumption is all that is keeping the economy going, with exports so dependent on the U.S. economy.

China's economy supposedly grew because off an increase their domestic consuption, even as their exports continued to decrease. The caveat is that China uses very different methods to report gross domestic product compared to the Western nations, this growth is likely just smoke and mirrors. In other words, they are doing exactly what we are doing, just on a grander scale. And as always, there will be reckoning later.