I was enjoying a week away and goofing around, sort of working on vaguely useful things that required walking about. Then, Ken sent the Goldman Sachs view of the GDP, see below.

So, now it begins. Do we know what to do? I get confused with all the data and projections; all that matters is we are at the cliff. I can't see any stocks as interesting unless they do most of their business out of the country.

I will return to silver and peanut butter.

I was thinking that our present collapse does not seem so bad, to those working, because we have so much stuff. We have acquired money and stuff all our lives and that is a fine insulation, until it is not. One hopes the stuff is paid for.

The thing to do is batten down the hatches, clear the decks of loose debt, fill the hold and kitchen so you have a tight ship if it has to go into the storm, lest it be thrust upon the rocks. Invest in Viet Nam, what the hell.

Have a nice day.

ART OF THE DAY: Goldman Sachs Thinks The End Of The Stimulus Is Going To Crush GDP Growth

Gregory White | Aug. 18, 2010, 1:55 PM | 4,621 |

Goldman Sachs (via Zero Hedge) have released what certainly is a depressing sight in their latest GDP report. The bank continues to predict that U.S. GDP will remain positive through 2011, with 1.5% growth in H2 2010 and 1.5% growth for Q1 2011, rising to 3% growth by the year's end. But that's pretty much anemic growth, and below consensus.

More interesting might be the impact of the withdrawal of fiscal stimulus on GDP growth for the U.S. economy.

The positive impact of said stimulus can be viewed in the first half of this chart, pointing to how it dragged up the U.S. growth rate through some more difficult quarters. But now with its withdrawal, its absence will be felt through 2011, where the pace of growth might have been lifted by its retention.

This could partially explain Goldman's projection that unemployment is set to rise back to 10% in the middle of 2011.

Goldman Sachs (via Zero Hedge):