Search the Community

Unfortunately, I think things are even worse than the data shows and I would say that this also applies to the Euro Zone as they are not doing that well. Germany isn't doing that well economically and while the United States is a little different even though whenever Western countries are in a recession you can bet all of them are and I think it's only a matter of time until the US goes into recession if they are not already in one which would not surprise me just like they said in 2007 we are not in a recession but when the figures where revised in 2008 it showed that all through 2007 that they were actually in a recession. The GDP numbers in my opinion are worse than what is being publicized by the UK government and the statistics office because the way it's calculated is they add consumption, they add investment, they add government spending and they add exports minus imports so if your country is running a trade surplus that adds to the GDP if you're running a trade deficit it subtracts from the GDP. Government spending which they call government investment which is quite funny because governments don't save and governments don't invest what governments do is they extract wealth through taxation from the private sector and then most of the time they adjust the components of CPI which they use to deflate the GDP and what does deflating the GDP mean well even the government accept that they inflate the money supply and debase the currency so that makes GDP look better because people have to spend more money. So what they do is they are deflated by the CPI or some kind of GDP deflator but as we know the government made changes to the methodology for the CPI and yes it is a lot lower than it used to be not higher but they are always changing it to make it appear lower so they can tell you that inflation is low and the economy is growing but even with that change we're still getting a recession. The economy is a lot worse than some of the commentators on here are realizing but I know there are certain commentators on here who are really tuned into what is really going on. Unfortunately, there is no bounce back in the economy and in this year for most regions this is going to feed into negative house prices. Also into 2024-2025 we are going to see a major collapse in the financial system play out which will only make this downward spiral get even worse and unfortunately this is going to be brutal for many countries.