‘Happy-Face’ Reporting Turns Debt Payments Into ‘Savings’

Posting on Canada’s Centre for Research on Globalization website (6/29/09), economic historian Michael Hudson notices that “Happy-face media reporting of economic news is providing the usual upbeat spin on Friday’s debt-deflation statistics. The Commerce Departmentâ┚¬Ã¢”ž¢s National Income and Product Accounts (NIPA) for May show that U.S. ‘savings’ are now absorbing 6.9 percent of income”: I put the word “savings” in quotation marks because this 6.9 percent is not what most people think of as savings. It is not money in the bank to draw out on the “rainy day” when one is laid off as unemployment rates rise. The statistic […]