by David Kranzler
Investment Research Dynamics
I actually could care less about BREXIT. I have yet to encounter any valid analysis on why the issue matters at all. What is valid is that the BREXIT theatrical show is being used to deflect scrutiny of the continuous economic reports showing that the U.S. economy is collapsing.
The Chicago Fed National Activity index released today plunged to -.51 against Wall Street’s expectation of a .11 gain. Last months data-point was revised lower to barely positive. The way that this index is calculated, it takes a lot to move the needle. A drop from a revised lower .05 to -.51 reflects heavy contraction in economic activity across a broad (85 indicators) spectrum of the economy. The 3-month moving average declined from -.25 – which was revised lower from the original .22 reported – to -.36.