The study of history can clarify much of what is happening today.
Joseph Goebbels was one of Hitler’s top aides and confidants. His role in the Third Reich was to administer propaganda to the unsuspecting mass. His credo was that a lie told long enough ultimately becomes truth in the minds of the public.
Henny Youngman was a historic American comedian. He was the king of one liners-Take my wife-please! A little known fact about Youngman was that he wrote, arguably, the line about the government official who, when asked what 2 + 2 was responded, what do you need it to be?
I start this little missive about Goebbles and Youngman upon reading the most recent report from the Institute for Supply Management (ISM) regarding the manufacturing business survey for May.
Given the so called pent-up demand following several months of manufacturing in consumer hindering weather, expectations were for a quantum leap from 54.9 to 57.
A significant leap did occur but in the wrong direction, down 1.7 to 53.2. Falling orders, production and employment were the culprits. Of course, readers and listeners of mine know this as a vicious deflationary cycle. Not a good report if we are supposedly emerging from the weather doldrums.
Apparently the President was interrupted before attempting a 12 foot putt with the bad news. More than likely his response was, Change It!
Henny to the rescue, what do you need it to be?
“WE USED THE WRONG SEASONAL ADJUSTMENT”
A Goebbels masterpiece.
When asked a Yes or No question-Will you be adding more people?-and the response was NO, the ISM seasonally adjusted the answer to mean MAYBE, which of course really means YES. Therefore the manufacturing number did not go down but magically went up, to 56.
The actual number 53.2 will be quickly forgotten. In the true Goebbels fashion the mainstream media will only focus on the seasonal adjustment.
We are emerging from the weather, don’t you know, and no amount of truth will keep us from that goal.
There is no report on whether the President made the putt.
Mr. President keep smiling. You have 31 days ‘til the truth comes out.
A PRESIDENTIAL CONSPIRACY
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.