Will You Take a Check?
Reality checks are a funny thing: Government and corporations write them all the time -- take for example economic reports or claims that certain products won't hurt you over time - like highly sugared foods. The public, almost blindly, goes about cashing these 'bogus reality checks' without giving a second thought to whether the check is good, or asking if it might bounce.
Two 'reality checks' that seem likely to bounce are the latest comments out of Treasury Secretary Paulson in China (a variant of "It's all good") while the second is the revisionist economic history issued by the Bureau of Economic Analysis yesterday.
This latter, which you can read for yourself by clicking here, has buried in it some of the most curious revisions I've ever read. What I am specifically flabbergasted by is not only how so many of the specific numbers have been changed, but the cumulative impact these changes have had on one of the key metrics that folks like me (and deflationists like my pal Jas Jain) look as as indicators of Peak Debt, because we all know at some level that on the other side of Peak Debt is the Economic End of the World.