Broad, Deepening Economic Downtrend Continued

Revised Annual Change in GDP Slowed Sharply,
Consistent with Entering a Recession

Headline Real Quarterly GDP Revisions Took Fourth-Quarter 2015 and
First-Quarter 2016 Growth Rates Lower, Below 1.0%, but Not Negative, with
First-Quarter 2016 GNP Minimally Below Zero, Again

Well Below Consensus, the Advance Second-Quarter 2016 Real GDP
Annualized Growth of 1.22% Faces Likely Downside Revisions

Nonetheless, Aggregate GDP Revisions Were Minimal and
Heavily Gimmicked, Including Cycle-Dampening Three-Year Moving Averages

Carefully Structured Statistical Shenanigans Were
Designed to Smooth the Business Cycle, Not to Reveal It

Velocity of Money Slowed Sharply in Second-Quarter 2016

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