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AMERICAN CORPORATE PROFITS STILL IN DECLINE AND STILL TOO HIGH. SEE THE TRUE PICTURE.

Many continue to tout what ought to be considered a smoke-and-mirrors, propaganda recovery for the American economy.

Today, I give you the true picture of corporate profits. First, this is the picture the Federal Reserve gives you. They report corporate profits in dollars.



And now, I give you the true picture. This is what corporate profits look like after deflating.



Anyone whose been living their adulthood years since the 1990s knows this picture corresponds to their reality while the Fed Res dollars picture tells nothing. Likewise, those were in their primes between 1960 and 1970 knows the truth of my picture. The same holds true for those who were in their primes in the 1980s.

To be sure, whenever True Corporate Profits have been rising, Americans have lived better. This aspect of reality contradicts the false preaching of socialism revivalists like Thomas Piketty.

All-time peak True Corporate Profits hit Q2 2006, leading True Peak GDP and True Peak Credit, which Q4 2007.

It looks like True Corporate Profits are following the trajectory of True GDP though not the rate of decline. Corporate profits are still too high relative to the long run True Average of US$88.60 billion, 1.63 times higher than that average.




So how well does True S&P 500 correspond True Corporate Profits and GDP? Keep in mind that in any year for awhile now, about 45% of revenues for the S&P 500 firms get earned outside the USA.



As it is, a couple of weeks back, I showed you the true picture on SNAP in YELLEN. THE FED, THE LIES, THE FAKE RECOVERY. 46 MILLION NEEDY AMERICANS STILL NEED FOOD STAMPS. How can anyone believe there ever has been a recovery after the collapse of the Greenspan-Bernanke Inflation Bubble, the largest credit bubble in the history of mankind?