Deflation "Accelerating growth?"

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It's the financial news meme of recent months.

"Accelerating growth" in the US.

There's just one problem: It's total bullshit.

The energy sector accounts for between 35 to 40 percent of all capital spending - and that industry is laying off workers by the many thousands.

Retail?

RadioShack, Wet Seal, Cache, Body Central, Deb Shops, Delia�, and Target Canada are disappearing. Staples/Office Max merger will result in around 1,000 store closings - and on and on it goes.

�The deflation story is very, very critical but there�s also this wrong concept that I keep hearing over and over again in the financial press about this acceleration in economic growth. That isn�t happening. Last month we had a horrible retail sales number. We had a horrible durable goods number. We�re likely to have a very disappointing retail sales number coming forward. This month we�ve had a strong payroll number � we say everything�s great. It�s not great. It�s running where it�s been. It�s been the same thing for the last five years. There�s no improvement in the economy.�

- Steve Ricchiuto, Chief Economist, Mizuho Securities USA

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"Accelerating growth?"

It ain't happening

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Cutting through the smoke