Lying Bastards Dept.

Lending - that is, the increase in debt - is not additive to GDP, it is subtractive!

This is the exact opposite of what is trumpeted on CNBS every day, it is the opposite of what our President has said, it is the opposite of what Congress has claimed is their goal in their regulatory zeal and it is the opposite of what is taught in our edifices of "higher education".

But this - directly from The Fed's and BEA's own numbers - says that all of those "economic theories" are in fact crap.

Denninger makes a good point here, I'll give him that, but he'd have a lot more popular blog, I'm sure, if he'd just come right out and say what he thinks. Verb. sat and all that.

"The Strategy That Has NEVER Worked." By Karl Denninger, The Market Ticker, 6/20/11.

H/t: Charles Hugh Smith.