From Bloomberg:

General Motors Co. (GM) stocked Jim Ellis Chevrolet in Atlanta with plenty of Silverado full-size pickups in early 2011, part of a wager on a strong economic recovery. The strategy is backfiring.

“We thought that this year would bring back the kind of economic activity that would translate into us selling more trucks,” Mark Frost, the dealership’s general manager, said in a phone interview. “It’s not happening.”…

…After GM’s truck inventory swelled to 122 days worth of average sales, the company said 100 to 110 will be normal going forward for such a large and complex line of vehicles, compared with 60 to 70 days for most models. Peter Nesvold, a Jefferies & Co. analyst, isn’t convinced. Ford Motor Co. (F), which makes similar trucks, is running at 79 days, and Nesvold says GM averaged 78 days on hand at year end from 2002 to 2010…

That first bit is nonsense – GM didn’t pile vehicles in to the dealership in anticipation of an economic rebound, but merely to have vehicles “sold” on the books.  From what I understand, GM counts a vehicle as sold when it is sent to the dealership.  If you want to fake your numbers and make it look like your taxpayer bailed out corporation is recovering, this is how you do it…”stuff” the dealerships with vehicles, call them “sold” and allow President Obama to state that we’re heading in the right direction.  Zero Hedge, though, has been on this since last December, and had an update on July 1st – here’s the chart:

Up and up and up goes the inventory – more and more cars being produced, with taxpayer subsidies, which no one has any money to buy.  A very large amount of our GDP “growth” over the past two years has been this sort of thing – inventory build up. Part of this is just corruption – as in GM’s case where they are trying to make a major Obama policy look like a success – while another part is just idiocy – a blinding faith in Keynesian economics which infects our entire economy.  Including in corporate board rooms where economists have received the same sort of Keynesian indoctrination that government and academic economists have received:  if government spends money, it will fix the economy.

This is Obamunism, good people – the final test that Keynes was wrong; that spending doesn’t make you rich.  The only thing which can make us rich is a free market economy based upon hard work, savings and careful investment.  Government’s only functions are to ensure a sound money supply, a balanced budget and that no one is using fraud to get ahead.  Once we get to that happy state of affairs, we’ll have a real economic recovery…until then, we’ll just wallow in the doldrums with a complete collapse possibly literally at any time.