This Week's Economic Whiplash

GDP bombshell: Q2 growth revised from 3.3% to 3.8%—highest since late 2023. Consumer spending up 2.5% vs. previous estimate of 1.6%.

PCE acceleration: Fed's preferred inflation measure hit 2.7%, up from 2.6%—highest since February.

Translation: The data's not adding up. When official numbers diverge this much from real-time indicators, something's about to break.

Here's a fascinating perspective from one of our YouTube Followers.

What if the unofficial inflation rate is HIGHER than the official inflation rate? Which in turn means that the official data continues to "look good" because it isn't fully capturing what's happening?

Which then (to me - Arie) raises the ugly spectre of - what would happen if we just cannot trust official data anymore? The answer, in short, is not good.

Things Are Actually Breaking

Tricolor Holdings just imploded. AAA-rated bond issuer. Alleged fraud discovered. Major underwriters involved.