Perhaps the greatest tragedy caused by the rise of right-wing radio is that now everything -- every single statement made -- is political and not factual. As a result, discussion about negative facts often boils down not to a refutation of those facts, but ad hominem attacks on those who mention those facts. For example, whenever someone correctly points out that the US economy is in dire shape they are called America haters who want the country to fail.
So, it's obvious that the Federal Reserve is full of America haters who want the country to fail because the minutes from their latest meeting are full of facts which aren't that pretty. In fact, they are downright terrible. Here's the opening paragraph of the recently released minutes from the April 29-30 meeting:
The information reviewed at the April meeting, which included the advance data on the national income and product accounts for the first quarter, indicated that economic growth had remained weak so far this year. Labor market conditions had deteriorated further, and manufacturing activity was soft. Housing activity had continued its sharp descent, and business spending on both structures and equipment had turned down. Consumer spending had grown very slowly, and household sentiment had tumbled further. Core consumer price inflation had slowed in recent months, but overall inflation remained elevated.
There is nothing factually wrong with any of those statements (as I will demonstrate below). However, because those facts do not support the right wing economic agenda the entire right wing media establishment ignored this important news release. Usually, anyone who makes factual statements like those above is immediately criticized as someone who wants the country to fail, or someone who hates their country. Mercifully the Federal Reserve governors were spared this fate -- for now.
Let's see how accurate the Fed's statements were. The Fed's statements are italicized.
indicated that economic growth had remained weak so far this year
According to the Bureau of Economic Analysis, GDP grew at a .6% pace in the fourth quarter of 2007 and the first quarter of 2008. And that assumes that inflation is correctly calculated.
Labor market conditions had deteriorated further
Year over year job growth has been deteriorating for some time and
The unemployment rate is ticking up.
manufacturing activity was soft
On a year over year basis, industrial production has been dropping since the end of last summer.
And the ISM manufacturing index has been below 50 for a few months, indicating a contraction in manufacturing activity.
The Philadelphia Fed survey has been weak for some time, as has
Empire state survey
Housing activity had continued its sharp descent
Prices fell an average of 1.7% nationwide in the first quarter from the final three months of 2007, according to the Office of Federal Housing Enterprise Oversight. The decline was the largest in the index's 17-year history. The government index, which is seasonally adjusted and based on data for home purchases, had dropped 1.4% in the prior quarter. Compared with a year earlier, home prices dropped 3.1% in the first quarter.
.....
Other nationwide indexes show steeper declines. The S&P/Case-Shiller index, which includes a broader variety of mortgages and which showed a nationwide drop of 8.9% in the fourth quarter from a year earlier, is set to release first-quarter figures next week.
From the Fed again:
business spending on both structures and equipment had turned down
According to the latest GDP report from the Bureau of Economic Analysis, business investment in "structures" decreased 6.7% last quarter and investment in software and equipment decreased .7%.
Consumer spending had grown very slowly
While personal consumption expenditures increased on a year over year basis last month, notice they are still hovering at the lowest levels in 4 years. Now -- ask yourself what record prices are the pump will do to this number?
household sentiment had tumbled further
Consumer confidence has fallen off a cliff, as has
Consumer sentiment
Core consumer price inflation had slowed in recent months, but overall inflation remained elevated
There is good news here.
On a year over year basis, CPI as steaded and perhaps is starting to come down a bit, as is
PPI
But that's the only good news in the Fed's statement.
So -- to Rush, Hannity, Newsbusters, Kudlow, Luskin, Cavuto and anyone else involved with the right wing noise machine it's obvious the Federal Reserve is full of traitorous American hating liberals. Do your duty and smear them into the ground.