ILLUSION OF RECOVERY – FEELINGS VERSUS FACTS

“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as the final and total catastrophe of the currency involved.” – Ludwig von Mises

The last week has offered an amusing display of the difference between the cheerleading corporate mainstream media, lying Wall Street shills and the critical thinking analysts like Zero Hedge, Mike Shedlock, Jesse, and John Hussman. What passes for journalism at CNBC and the rest of the mainstream print and TV media is beyond laughable. Their America is all about feelings. Are we confident? Are we bullish? Are we optimistic about the future? America has turned into a giant confidence game. The governing elite spend their time spinning stories about recovery and manipulating public opinion so people will feel good and spend money. Facts are inconvenient to their storyline. The truth is for suckers. They know what is best for us and will tell us what to do and when to do it.

The false storyline last week was the dramatic surge in new jobs. This fantastic news was utilized by the six banks that account for 80% of the stock market trading to propel the NASDAQ to an eleven year high and the Dow Jones to a four year high. The compliant corporate press did their part with blaring headlines of good cheer. The entire sham was designed to make Joe the Plumber pull out one of his 15 credit cards and buy a new 72 inch 3D HDTV for this weekend’s Super Bowl. When you watch a CNBC talking head interviewing a Wall Street shyster realize you have the 1% interviewing the .01% about how great things are.

What you most certainly did not hear from the MSM is that the NASDAQ is still down 42% from its 2000 high of 5,048. None of the brain dead twits on CNBC pointed out the S&P 500 is trading at the exact same level it reached on April 8, 1999. Twelve or thirteen years of zero or negative returns are meaningless when a story needs to be sold. On Friday the hyperbole utilized by the media mouthpieces was off the charts, leading to an all-out brawl between the critical thinking blogosphere and the non-thinking “professionals” spouting the government sanctioned propaganda. Accusations flew back and forth about who was misinterpreting the data. I found it hysterical that anyone would debate the accuracy of BLS (Bureau of Lies & Swindles) data.

The drones at this government propaganda agency relentlessly massage the data until they achieve a happy ending. They use a birth/death model to create jobs out of thin air, later adjusting those phantom jobs away in a press release on a Friday night. They create new categories of Americans to pretend they aren’t really unemployed. They use more models to make adjustments for seasonality. Then they make massive one-time adjustments for the Census. Essentially, you can conclude that anything the BLS reports on a monthly basis is a wild ass guess, massaged to present the most optimistic view of the world. The government preferred unemployment rate of 8.3% is a terrible joke and the MSM dutifully spouts this drivel to a zombie-like public. If the governing elite were to report the truth, the public would realize we are in the midst of a 2nd Great Depression.

 

The unemployment rate during the Great Depression reached 25%. Without the BLS “adjustments” the real unemployment rate in this country is 23%. Cheerleading and packaging the data in a way to mislead the public does not change the facts:

  • There are 242 million working age Americans. Only 142 million Americans are working. For the math challenged, such as CNBC analysts, that means 100 million working age Americans (41.5%) are not working. But don’t worry, the BLS says the unemployment rate is only 8.3%. Things are going so swimmingly well in this country the other 33.2% are kicking back enjoying the good life.
  • The labor force participation rate and employment to population ratio are at 30 year lows. The number of Americans supposedly not in the labor force is at an all-time record of 87.9 million. A corporate MSM pundit like Steve Liesman would explain this away as the Baby Boomers beginning to retire. Great storyline, but the facts prove that old timers are so desperate for cash they have dramatically increased their participation in the labor market.

  • The data being dished out by the government on a daily basis does not pass the smell test. The working age population since 2000 has grown by 30 million people. The number of people working has grown by only 4.7 million. A critical thinker would conclude the unemployment rate should be dramatically higher than the reported 8.3%. But the government falsely reports the labor force has only increased by 11.8 million in the last eleven years. They have the gall to report that 17.9 million Americans just decided to leave the workforce. The economy was booming in 2000. It sucks today. Don’t more people need jobs when times are tougher? The Boomers retiring storyline has already proven to be false. The fact that 46 million (15% of total population) people are on food stamps is a testament to the BLS lie. A look at history proves how badly the current figures reek to high heaven:
    • 2000 to 2011 – Not in Labor Force increased by 17.9 million.
    • 1990′s – Not in Labor Force increased by 5 million.
    • 1980′s – Not in Labor Force increased by 1.7 million.
  • The Not in the Labor Force category is utilized to hide how bad the employment situation in this country really is. They conclude that 17 million out of 38 million Americans between the ages of 16 and 24 are not in the labor force. That is complete bullshit. From the time I turned 16, I worked. Everyone I knew worked. I worked through high school and college. It is a lie that 45% of these people don’t want a job. If you dig into their data, you realize the horrific state of employment in this country:
    • 74% of 16 to 19 year olds are not employed
    • 85% of black 16 to 19 year olds are not employed
    • 31% of black 25 to 54 year old men are not employed
    • 40% of 20 to 24 year olds are not employed
    • 22% of 25 to 29 year old males are not employed
    • 22% of 50 to 54 year old males are not employed
    • According to the BLS, 11% of men between 25 and 54 are not in the labor force

Not only is real unemployment at Depressionary levels, but those that do have jobs are falling further and further behind. Wages have gone up less than 2% in the last year and have been rising at an annual rate below 3% for the last four years. According to our friends at the BLS, inflation has risen 3% in the last year. This is almost as ludicrous as their unemployment rate. Anyone living in the real world, as opposed to the BLS model world, knows that inflation on the things we need to live has been rising in excess of 10%. It is a fact that if you measure CPI exactly as it was measured in 1980, at the outset of our great debt inflation, it exceeds 10% versus the fake 3% reported without question by the MSM to a non-thinking public. A poor schmuck making the median salary of $25,000 who gets a 2% raise thinks he has $500 more to spend when in reality he has lost $2,000 of purchasing power. Federal Reserve created inflation is an insidious hidden tax that destroys the 99%, while enriching the 1%.

Until Debt Do Us Part

“Insanity is doing the same thing, over and over again, but expecting different results.”Albert Einstein

The recovery storyline being touted by the oligarchy of politicians, bankers and media is designed to make consumers feel better. This is a key part of their master plan. Any honest assessment of the financial disaster that struck in 2008 would conclude it was caused by too much debt peddled to too many people incapable of paying it back, too few banks having too much power, the Federal Reserve keeping interest rates too low for too long, and that same Federal Reserve doing too little regulating of the Too Big To Fail Wall Street mega-banks. I wonder what Albert Einstein would think about the “solutions” rolled out to fix our debt problem. Would he find it insane that total credit market debt has actually risen to an all-time high of $53.8 trillion, up $533 billion from the previous 2008 peak? Our leaders have added $6.1 trillion to our National Debt in the last four years, a mere 66% increase. This unprecedented level of borrowing certainly did not benefit the American people, as real GDP has risen by $96 billion, or 0.7%, over the last four years.

Would Einstein find it insane that the governing elite would encourage the 4 biggest banks, that were the main culprits in creating a worldwide financial collapse, to actually get bigger? The largest banks in the U.S. now control 72% of all the deposits in the country versus 68.5% in 2008. The Too Big To Fail are now Too Bigger To Fail. Rather than liquidating the bad debts, breaking up the insolvent banks, selling off the good assets to well run banks, firing the executives, and wiping out the shareholders & bondholders foolish enough to invest in these badly run casinos, the powers that be chose to protect their fellow .01% brethren and throw the 99% under the bus.

Ben Bernanke, in conjunction with Tim Geithner and his masters on Wall Street, implemented a zero interest rate policy designed to enrich the Wall Street banks, force investors into the stock market, and encourage Americans to borrow and spend like it was 2005 again. Rather than accepting that our economy has been warped for decades, with over-consumption utilizing debt as the driving force, and allowing a reset, the Federal Reserve insanely encouraging banks and consumers to do the same thing again. We do know Bernanke has stolen $450 billion of interest income going to savers and senior citizens and handed it to Jamie Dimon, Vikrim Pandit, Lloyd Blankfein and the rest of the Wall Street cabal. The “austerity is bad” storyline is pounded home on a daily basis by the politicians, corporate chieftains, Wall Street billionaires, and MSM pundits. The definition of austere is “practicing great self-denial”. Did you see the mob scenes on Black Friday? Americans are incapable of any self-denial, let alone great self-denial, and the masters of our country will not allow it to happen. One look at our GDP figures confirms the non-austerity occurring in this country. In 2007, prior to the collapse, consumer spending accounted for 69.7% of GDP. Today, consumer spending accounts for 71% of GDP, with investment accounting for 12.7% of GDP. In the good old days of 1979 prior to the epic debt bubble, when the financial industry do not run this country, consumer spending accounted for 62% of GDP and investment accounted for 19% of GDP. What an insane concept. You spend less than you make and save the difference. You then invest that money where you can get a reasonable return (.15% in a money market account is not exactly reasonable).

As Ludwig von Mises pointed out, a false boom created by credit expansion will ultimately collapse. We had the chance in 2008 – 2009 to voluntarily abandon the Wall Street induced credit expansion and allow our country to reset. The pain and misery would have been great, especially for the 1% who own most of the stocks, bonds and peddle the debt to the ignorant masses. As you can see in the chart below, the powers that be need debt per employed American to grow at an ever increasing rate to maintain their power and wealth. The miniscule reduction in debt from 2009 to 2011 was unacceptable. The governing powers will not be satisfied until von Mises’ final currency catastrophe is achieved.

Bernanke and his Wall Street puppet masters’ plan is actually quite simple. It’s essentially a confidence game. A confidence game (also known as a con, flim flam, gaffle, grift, hustle, scam, scheme, or swindle) is an attempt to defraud a group by gaining their confidence. The people who commit such tricks are often known as con men, con artists, or grifters. The con man often works with one or more accomplices called shills, who help manipulate the mark into accepting the con man’s plan. In a traditional confidence game, the mark is led to believe that he will be able to win money or some other prize by doing some task. The accomplices may pretend to be random strangers who have benefited from successfully performing the task. Bernanke and the 1% are the con men. They are attempting to defraud the 99% by convincing them their “solutions” will benefit them. The shills acting as accomplices are Wall Street bankers, bought off economists, politicians, journalists, and mainstream media pundits. You are the mark. The game has multiple facets but is based on more freely flowing low interest easy debt. The con man has reduced interest rates to zero at the behest of his puppet masters. The Wall Street accomplices offer enticing financing to the marks for big ticket items like automobiles, furniture and electronics. As the marks go further into debt, the Wall Street shills report record earnings ($26 billion from loan loss reserve accounting entries), consumer spending rises and GDP goes higher. The mainstream media accomplices dutifully report an improving economy. The government accomplices massage the employment and inflation data and declare a jobs recovery with no inflation. The marks are supposed to feel better about the future and spend even more borrowed money. This is what is considered a self-sustaining recovery by the psychopaths running this country.

All you have to do is open your daily paper to see the confidence game in full display. Last week the MSM reported another surge in automobile sales. Our beloved American automobile manufacturers are back baby!!! Automobile sales are now pacing above 14 million on an annual basis. This is up from the depths of the recession in 2009 when the annual rate was below 10 million. We’ve breached the Cash For Clunkers level and there is nowhere to go but up. The storyline is that Obama was right to save GM and Chrysler with your tax dollars. They are now making splendid vehicles (except for the exploding Chevy Volts) and employing millions of Americans. This is a true American comeback success story. Clint Eastwood should do a commercial about it.

There is one little problem with this storyline. It’s bullshit. Remember GMAC? You bailed them out when all their subprime auto and mortgage loans went bad in 2009. They have a brand new business plan. Change your name to Ally Bank and start making as many subprime auto loans as possible. You will be happy to know that according to Experian, 45% of all auto loans being made today are to subprime borrowers. What could possibly go wrong? In addition, the average loan term has grown to almost 6 years. Executives at Ally Financial said that subprime car lending had become “very attractive” because profit margins on the loans more than cover the cost of expected losses from borrowers who fail to repay what they owe. I’m sure they have everything completely under control. Gina Proia, a company spokeswoman, said the company places “greater emphasis on the higher end of the nonprime spectrum” and only lends to people who show they can pay. I can’t believe they are restricting their loans to only people who they think can pay. I’m surprised Obama isn’t condemning them for such restrictive loan terms. If you open your paper to the auto section you will see financing offers of $0 down-payment, and 0% interest for 7 years across the board on most models. But why buy, when you can lease a luxury automobile for $300 per month? It is simply amazing how many vehicles you can “sell” when “credit challenged” Americans can rent them for seven years. I wonder if this explains why I see dozens of $40,000 luxury autos parked in front of $25,000 dilapidated hovels during my daily commute through West Philadelphia. It also seems the Big Three are “selling” a few extra vehicles to their dealers in January as pointed out by Zero Hedge. No need to let a few facts get in the way of a feel good story.

  • Ford month-end inventory 86-day supply at end of Jan. (492k vehicles) vs 60-day supply (466k) as of Dec. 31
  • Chrysler had 83-day supply (349k units) end of Jan. vs 64-day (326k units) as of Dec. 31
  • GM month-end inventory 89-day supply (619k units) vs 67-day supply (583k) Dec. 31

The facts prove the issuance of billions in easy credit is creating the illusion of recovery. Non- revolving (auto & student loans) consumer credit outstanding is now at an all-time high of $1.7 trillion. Even with billions in bad debt write-offs since 2009 the amount outstanding has risen by $100 billion. Does this sound like austerity is gripping the nation? The Federal government is dishing out student loans like candy, as hundreds of thousands of students get worthless degrees from for-profit diploma mills like the University of Phoenix and its ilk. By keeping them occupied in school, the government is able to keep them in the Not in the Labor Force category. Not to be outdone, our friends at GE Capital, Wells Fargo and the other too big to fail entities have been doing their part on the revolving credit side of the scam. I’ve recently been seeing an ad by the largest U.S. furniture retailer, Ashley Furniture, offering 0% interest with no payments for 7 years. I don’t know about you, but my kids destroy a couch in less than 7 years. Wells Fargo Credit doesn’t seem too worried. A critical thinker might ask, how can Wells Fargo possibly make money offering these terms? But there is the rub. Ben Bernanke is loaning Wells Fargo money at 0% so they can perpetuate the confidence game. These insane bankers truly believe they can kick start this moribund debt saturated economy by issuing billions more in debt to people incapable of repaying them. Einstein would be amused.

The McKinsey Group put out a report a couple weeks ago analyzing the amount of American household debt and optimistically concluding that it could be back on a sustainable path by 2013. Mike Shedlock pointed out that sustainable is in the eye of the beholder. It seems the bright fellows at McKinsey haven’t grasped the concept of regression to the mean. First of all their analysis is flawed because real disposable personal income is actually declining and Ben Bernanke’s master scam is working and Americans are now adding to their household debt. The little blue line has turned upwards since they gathered their data. Secondly, as Mish so accurately points out, the sustainable level of household debt is really at the levels prior to the debt bubble that began in the early 1980s. That is a debt level of approximately 70% of disposable personal income, as opposed to the current level of 110%.

The implications of household debt levels regressing to their long-term mean would be catastrophic to the 1%. Their kingdom of debt would come crashing down. Their power and wealth would be swept away. This is why it is so vital for them to create the illusion of recovery. Their confidence game is built upon an ever increasing flow of credit expansion. It will not work. There is no avoiding the final collapse of a boom created solely by credit expansion. Those in power will never voluntarily relinquish their grand game of pillaging the wealth of the nation, so economic collapse will be the ultimate result. They will continue to use propaganda, printing presses, and half-truths to further their agenda. But those who examine the facts will come to a logical conclusion that we are being sold a great lie.

“Half the truth is often a great lie.” – Benjamin Franklin

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  • jo6pac

    Thanks Jim

  • JoinOly

    Got stuff?
    I mean life-perpetuating stuff like food and shelter and clothing?

    We are doomed and you will need:
    1. a wood/coal stove, the kind my grandma had, that cooks, heats, warms water;
    2. enough food and supplies for at least one year;
    3. enough fire wood for one year assuming lights go out;
    4. generator and fuel to run freezers and other necessities;
    5. guns and ammo.

    Sound crazy?

    Wait and see, then say your prayers.

    Good Luck

    • Bob

      Got all that, being an experienced Pennsylvanian.

    • Emigrant

      We are prepared for the worst but, we hope for the best. If things turn to be interesting than we are prepared:
      1 – with military precision, 3 family together, with 3 cars, armed with 3 AK-47 underfolded military grade, two Saiga and one Moser 500, with more than 1000 rounds, to go with any cost to the airport.
      2 – abandon everything there and take the airplane, destination Toronto Canada where we have close relatives.
      3 – Stay there for some weeks, and fly from Canada to Europe, where we have the second home, pension, free health care, and small business, passport. identity card, friends and relatives.
      4 – say good buy to Americans and let them to clear their mess by their one.

  • Sean Sullivan

    An excellent article, depressing yes, but excellent!

  • http://www.mindmagic123.com Holistic Hypnosis & Hypnotherapy – Los Angeles

    Its breathtaking. How long can this tottering tower of debt continue to sway in the financial breeze. My fear is that the collapse will lead to worse than the great depression. Because in some ways we have already virtually arrived, and there must be further to go, another huge drop, before the “Great Recession” becomes the “Greater Depression”.

    Holistic Hypnosis & Hypnotherapy Los Angeles

    • When-The-Whip-Comes-Down

      Witnessing how their interpenetration of our reality is being “massaged into a happy ending” and finding out that the image of investors jumping out of skyscrapers on Black Friday in 1929 is another example of mainstream media bullshit designed to protect the bankers. Seeing the story of official record on our currant economic times bearing such little resemblance to reality, I have to wonder what the real story of corruption was that fostered the Great Depression.

  • Joseph

    If real unemployment is nearly 25%, what do you suppose it would be with your “therapeutic” austerity measures? Austerity is a prescription for the destruction of liberal civil society. It means fascism. That would be the real world outcome of the Ron Paul libertarian daydream applied to 21st century mass society. He’s got good intent and fine principles, but he belongs to another time.

    The 1% create this deflationary environment. Don’t kid yourself about inflation. People don’t have any money. It is a lack of money fueling this economic trauma. Commodities price inflation is pure speculation, not increased demand. In a world wide slowdown, the price of oil rises, in spite of falling demand. Pure manipulation. The market is rigged to force prices always upwards.

    The solution is regulation to prevent commodities speculation. Regulation to curtail the derivatives market and force it into the daylight. Regulation to break up the TBTF banks. Regulation to get rid of the Fed insider’s club. The people need credit at low cost. Instead it is being given to speculators. There are no low interest rates for consumers. 40% or more of debt is usurious interest paid to so-called “investors”, parasites.

    We need more transparent government to regulate and get rid of the libertarian sonsabitches now in control, playing their insider games and fucking the people.

    • http://www.freedomharbor.com Patrick Scott Donovan

      “He’s got good intent and fine principles, but he belongs to another time.”

      Yes, he does belong to another time: the future.

    • Ron notpaul

      You are a complete idiotic fool. The libertarian fools? you have no Idea what the hell you are talking about. Try reading and understanding what the Constitution of the USA says and maybe you will start to get a clue. It is the international elite, aka one world evil sonsabitches
      that are trying to and are doing, stealing this country blind and removing our freedoms with the help of the dictator of the USA. Unless someone like Ron Paul that understands the constitutional limits of the government is running this country there will just be more of the same old NWO, CFR, Bilderberg, Trilateral commission,Rothschild appointed dictators doing their bidding.!!! Wake up American people.

    • Jim Q

      That’s funny. I thought the Democrats and Republicans were running the show.

      How many Libertarians Party members among the 535 Congressmen?

      Only a brain damaged ideologue would blame libertarians for the $100 trillion of unfunded debt, constant never ending war, and destruction of civil liberties inflicted on the American public by both parties.

      Your post is beyond laughable.

      • Joseph

        Most every Republican is mouthing the deregulate, privatize mantra, which is libertarian ideology. Democrats tag along. Every CEO of every large corp, every head of any Wall St casino operation, chatters about “free markets” and individual freedom. Libertarian ideology sponsors the most extreme predatory capitalism. Ayn Rand has many admirers among those in power. And they all lavish ever greater money on the DOD. Don’t talk to me about Libertarian Party membership. That means little. Ron Paul is a Republican. Libertarian thinking is ubiquitous because it is the native soil of the American dream.

        I’m sure you’re more intelligent than your post indicates.

        • http://bradyinc.com Frank Brady

          It isn’t the “mouthing” that matters. It’s the “do-ing.” And NOTHING the Republican/Democrat wings of the Washington Party are doing is remotely libertarian.

    • http://usshospice.us BCD

      Does a “liberal” society include tolerating the Prez assassinating American citizens without even bothering to file charges?

      Erect about the most pervasive Total Surveillance State imaginable, whose so-called Justice Department brags it can access anyone’s financial records without even requesting a subpoena?

      Hope you get a grip soon. Fascists have been railroading this country back to feudalism for decades. Check out who financed Obama’s juggernaut, almost 1 $Billion campaign.

      Liberals, conservatives.. by any name politicians (and media shills) are just well-paid-off front men and women followin’ orders and paddin’ their portfolios with insider tips in return for handin’ out tax and fantasy Treasury/Fed money. Vanishingly rare exceptions.

      Why do you think they rammed ObamaCare through as priority No. 1? What’s the biggest non-food industry, in many ways the most profitable? Had to underwrite that hog trough’s survival. Have you checked out how American’s health stats and sickness industry spending compare to other nations? Are you aware American adults are vastly, incomparably sicker than a century, especially half a century ago?

      With Asian and Western Central Banks already acting as One, outside any laws, welcome to the Global Third Reich of the New Millennium, essentially in everyone’s neighborhood already. Domination/exploitation / Divine Rights of KingPins Über Alles.

    • http://bradyinc.com Frank Brady

      With all due respect, you haven’t the slightest grasp on reality.

    • Rich

      Friend, isn’t that like saying that the 10 Commandments and the golden rule apply to a different time?

      What is right for another time is right for our time and anytime and everytime.

      We are experiencing the results of a moral decay and collapse. this is what has always caused the demise of every culture and civilization

    • Gary Nolan

      Joseph: Seriously, what planet have you been living on? It is obviously not ours.

      You wrote: “the libertarian sonsabitches now in control”…. ‘scuse me, Joe, but to which “libertarians” are you referring? Obama? Bush? Romoney? Gangrene? Sanatarium?

      I don’t notice any “libertarians” in control of the political state. And if there are, please tell me where they’ve been hiding.

      The daydreamers are not those supporting Ron Paul (who is certainly a REALIST). The daydreamers are the assorted coercionists (socialists, fascists, welfarists, warfareists) who believe they can “create something from nothing” — i.e., they can create REAL wealth and prosperity by attacking people and taking their property.

      I’ve yet to see where bankrobbers add to the prosperity of the society. Of course, we have those bankrobbers at the (private) Federal (non) Reserve System who are continuing to debase our currency which creates economic hardship for the middle class, the poor and the elderly living on fixed incomes …. all to benefit the bankster 1% elite.

      Wake up, Joe. The problem is not with freedom and liberty — of which we have a rapidly diminishing supply. The problem is with those who favor coercion over freedom. The former will always incur the destruction of civilization: witness 6,000 years of recorded history.

      Only Ron Paul understands BOTH the problem and how to achieve a realistic solution that will maximize our freedom AND our prosperity.

    • Patrick Barron

      Fear of so-called austerity is used by the government to perpetuate its parasitic hold on the economy. Murray N. Rothbard explained that what the country needs is an expansion of “private purchasing power remain”; that is, get rid of the parasitic government and return real purchasing power to the private economy, whichis the only source of real wealth. All government can do is redistribute wealth, after it has taken its cut off the top, of course.

  • Bob Browne

    Great research and presentation. Thanks.

  • getreal

    Nobody with an IQ above 100 is going to risk their savings to create a new business in the predator controlled USSA, and that’s why employment will continue to fall until the system completely collapses (probably due to hyperinflationary efforts to mask the truth with fiat toilet paper).

    The USSA is finished. And almost certainly, mankind is finished. Humans are dumber than rocks, dumber than any other species. No other species honors, defends, supports, sanctions and finances the predators who prey upon them. Only humans do that. MORONs.

  • http://yahoo CHARLES ADKINS

    JUST WHEN YOU THINK YOU’VE SEEN EVERY CON IN THE BOOK … AND THEY ARE SO WELL ORGANIZED. WHAT IS REALLY SCARY IS THAT THE POLITICAL PARTIES SEEM TO A PART OF THE SCAM. WHERE DO WE GO FROM HERE ? EVEN WHEN THEY TALK A GOOD STORY, CAN THEY BE GENUINE ? OR IS ONE EVEN BETTER THAN THE OTHER ? THE ONE IN NOW IS DEFINITELY DRAGGING US DOWN FAST, BUT CAN THE OTHER EVEN PULL US OUT OF THIS MESS ? IT SEEMS TO GET WORSE EVERY FOUR YEARS. I’M 81 AND AM WORRIED FOR MY GRAND, AND GREAT GRAND CHILDREN.

  • pan4gold

    OT
    Hi George, Have you seen this article? I think you should try to get the Tylers to post it on Zerohedge as it needs to be shopped around the internet as much as possible imho. Cheers
    February 3, 2012
    Beware The Ides of March in 2012: The Double Blow of Economic Collapse And World War Is Coming
    In it the author writes about …
    Engineering A “Clash of Civilizations” To Destroy The Global Economy, Save The Environment, Reduce The World Population, And Maintain The Global Status Quo
    Aside from the pretty well known facts of the situation he points out something I believe should be better well known but isn’t. When the democratically elected government of Mohammad Mosaddegh in 1953 was overthrown the CIA were aided and abetted by the mullahs there. the writer conjectures they still secretly connive with the western powers against their own people. Here is the part;

    The anti-growth Western elites want a third world war erupt in the Middle East, with Israel and the forces of the West on one side, and Iran and the forces of Islam on the other side. They believe that the world economy is a threat to the global environment and that creating a divine “Clash of Civilizations” is a solution to this mega problem because it will lead to a catastrophic world war and the destruction of the world economy.

    This “Clash of Civilizations” has been set up between the West and Islam in such a way that both civilizations will be destroyed by the end of the epic struggle, and pave the way for a new, global, post-industrial civilization to emerge out of the shadows and out of the ruins.

    But in order for there to be a mythical “Clash of Civilizations,” the globalists in Washington must first create the Islamic Ummah, with Islamic fundamentalists in power throughout the Middle East, Central Asia, and North Africa, from Egypt to Iran, Libya to Afghanistan.

    The process of Islamisation is not spontaneous, but generated by British and American intelligence agencies. Their aim is to put culturally backward and power-hungry theocratic thieves in charge in Muslim societies, rather than allow secular and nationalist democracies to develop and modernize the Islamic world.

    Any prominent Muslim leader in the Middle East who is against the forces of Islamic fundamentalism, and who has the power to shift Western popular perceptions about the East, is pushed out of the picture by the globalist owned CIA and MI6. This is what happened to the legendary Afghan Mujahideen commander Ahmad Shah Massoud, who was planning a democratic future for his war-torn country but was murdered by CIA trained Al-Qaeda terrorists on September 9, 2001.

    Massoud was a real warrior and heroic revolutionary, unlike the villainous snake and coward Khomeini, who was supported by the MI6 and CIA.

    What occupies the minds of the Illuminati elites in America, England, Israel, and Iran is creating a global dictatorship out of the fires of the coming great clash between the two worlds, not the survival of the countries that they rule over.

    The belief that America’s rulers won’t let Iran close the Strait of Hormuz because that act would turn off the world economy implies that America’s rulers actually care about the world economy. But they don’t. They want America’s economy and the world economy to collapse. Privately, they will welcome a closure of the Strait of Hormuz, but publicly they’ll scream like crazy and pretend to defend the interests of the world economy.

    Also, the belief that Iran won’t use all its means to shut down the Strait of Hormuz because that would be an act of national suicide is grounded in the false understanding of the Islamic Republic of Iran’s goals and methods.

    The roots of the regime are in shadowy soil of Western intelligence agencies. The shadow CIA and shadow Mossad have cooperated with Islamist fanatics in Iran since 1953 when they were called on to agitate in the streets against the democratically elected government of Mohammad Mosaddegh.

    When the Shah’s time had come to an end in 1979, the CIA and MI6 manipulators brought in the same Islamic fundamentalists to rule Iran for them while posing on the wold stage as antagonistic and ideological rivals. Khomeini’s rise to power as Iran’s Supreme Leader assured the success of the Globalist/Illuminati agenda.

    The elite magicians of the West have a long view of history. They knew the Soviet Union would fall one day so they made preparations for that event in the geopolitical and ideological terrain.

    It was no accident that after the collapse of the Soviet Union, Islamic fundamentalism as represented by Iran and international terrorism as represented by various Islamic groups came to replace the Soviet Union as “The Enemy.”

  • billw

    This is a really well written and well documented article ( masterpiece) that totally destroys any credibility of the BLS or the current administration. We need to force the MSM to support the American people and not one political party. The only way to dig out of this hole is to support those who suppory job creation, not wealth redistribution. I have much more faith in the ability of all the men and women who run small businesses to create the jobs we need, than I have in any government to create jobs.

  • Arthur Hall

    I’ll be 91 years old in April. When I was 17 I hitchhiked and rode freight trains from Boston to Chicago to New Orleans to Los Angeles, slept in hobo jungles and went as long as four days in a row without anything to eat or a place to sleep. I survived. Today I have no debt, paid cash for a $30,000.00 automobile, have plenty to eat and a nice place to live. I learned early in life what it is like to be at the extreme poverty level, and I avoid the manipulations of the stock market and other wild schemes perpetrated by the corrupt officials running this country. I won’t live long enough to undergo the terrible fate being perpetrated in Washington and Wall St. What amazes me is the fact that Walmart’s parking lot is full every day all day, as well as the other mass merchandise businesses. My son already bankrupt once asked me to GIVE him $11,000.00 to pay off his credit card debt. I turned him down and have not heard from him since. I had bought him a new truck, computer and other big ticket items, but said no way for TATOOS which he charged to his credit cards. As I see it this country will not survive for long at the rate it is going and now they want to start a War with Iran. Imbeciles, all of them, and Obama wants to be reelected . What a disgrace.

    • John Walles

      Arthur, if you are 91 how old is your son that he wants to run around and get tatoo’s ? I don’t know of anyone over the age of 30 who is running around getting tatoo’s, so when did you have your son and how did you raise him that he feels you owe him?

  • mattster

    Fabulous article. Thankyou.

    Oh, the exquisite irony of the buy.com ad for “the girl’s best friend” immediately below an article about the debt-fuelled consumer binge – the idea of the diamond being a “precious” and strictly limited commodity being another great example of the super-smart shoving it up the daggy (sheep-like, in New Zealand parlance) asses of the super-dumb.

  • dick mruz

    thank you for the bitter truth…

  • fear monger

    All we need is a little war breaking out between China and our corrupt country to straighten out the finances. We will be too busy scrambling to help prepare for the invasion to notice that Wall Street and the Media control all news and info that is “fit” for the public. The federal reserve note will be king for another generation as all other trading will be blocked by threat of jail time. A few uncontrollable viruses and bacteria around the world will keep us from moving from our cozy shelters. Game over when the robotics/AI gets to the point of replacing even engineers.

  • viseroy

    Gosh Getreal, you’re so smart. Mankind is finished! Oy! Nothing like trashing the human race. Relax.

  • Don

    I looked up some numbers on one of the .gov sites and here is what they show:
    Current U.S. population: approx. 312,000,000 (thats 312 million)
    Percentage under age 18: …………………………………………….approx. 23%
    Percentage age 65 & over: ……………………………………………approx. 15%
    Percentage in jail or prison: …………………………………………approx. 1%
    Percentage of those not looking for a “job” (housewives, etc.) ……….2%
    This totals 41% mutiplied by 312 mil equals 127,920,000 (or 128 mil for ease of math)
    312-128= 184 million total ‘working age people’
    current non-farm jobs: approx 115 mil 184-115= 69 million unemployed ‘working age’ people
    69 mil/312 mil = 22% unemployment rate. And if you only use the ‘working age’ people in this equation, you get 69 mil/184 mil = 37.5% unemployment rate.
    WHERE IN HELL DO THEY COME UP WITH 8.3% ?

    • Stanley

      To Don and others,
      I went to http://www.bls.gov/oco/ocos349.htm and found that the number of farm workers
      is about 1.6 million.
      So an adjustment to your calculations would result in the number of unemployed being reduced to 67.4 million. Thus the unemployment rate is 67.4 million/ 184 million,
      i.e. 36.63%. This is a minor correction.
      This is a minor correction, and in no way diminishes your concluding question
      WHERE IN HELL DO THEY COME UP WITH 8.3% ?
      Here’s part of the answer and the solution:
      The devil is a murderer and a liar from the beginning. John 8:44;
      “New World Order – Same Old Lies” popular saying;
      “The sinner shall borrow, and not pay again; …” Psalm 36:21.
      We are suffering from “the errors of Russia” (Aligning with Lucifer, under the guidance of a formerly “secret” society, under the appearance of athiestic Communism or something like that). http://www.fatima.org
      I’m praying the Rosary (Many (Judith 13:25, Psalm 33:2, Matthew 26:44) Pater Nosters
      (Luke 11:2-4, Matthew 6:9-15) and Ave Marias (Luke 1:28,42)) http://www.newadvent.org – Bible

  • rocketfuel21

    The article is a great synopsis of the current con game being run. I remember buying my first car in the 70′s for $2900, brand new, and thinking it was a big commitment. That car today would be about 8 times that many dollars to buy new, but at least my income is at least that much more in dollars. That situation took 40 years to happen. If the current nastiness took 40 years to unwind, it might be more of the same but I have a sneaky suspicion that it will unwind a hell of a lot faster and the problem will be on the income side of the equation. Great article. I do, however, take exception to the (shall I say idiot) that wrote in railing about Ron Paul and his liberterian ideas. Cutting down on crazy spending that supports non productive things is the only possible chance this country has to save the dollar and any standard of living we are used to. Some bullshit replacement currency that is completely controlled by the international banks with a few ultra rich elite types calling the shots is just the last big nail in the coffin. Who wants to live in that world?

  • http://www.singledudetravel.com Charlie Bushmeister

    Excellent article. I’m forwarding this on to the sleeple around me. One of my blog cowriters wrote a highly profanity-filled response to this article:

    http://www.singledudetravel.com/2012/02/idiots-there-is-no-economic-recovery

  • http://evolutionofdemocracy-johnnyl.blogspot.com John Liparelli

    Love your inventory data on the Big 3 and Not in Labor Force stats. Good stuff! JFL

  • http://usshospice.us BCD

    Excellent article.

    Please note real GDP is negative since dot.com bust. Even ShadowStats’ deflator is understated, so even his negative GDP graph since is somewhat more polyannish than reality.

    By most widely accepted criteria, US has been sliding into a Depression since millennium began, reached 10% down years ago.

  • John Walles

    Very good, well researched article. With all of the ratting around you did to get the data, have you run across the Goldman Sach’s announcement that all of the government stat’s are completely AFU because of the downturn being so much greater that previously announced? Also have you run across the actual calculation for the unemployment rate? The smoothing in the rates are unbelievable. It reminds me of the old story of shit being redefined as strong fertilizer after being through the corporate filter 5 or 6 times.

  • http://barrettpowell.com Barrett Powell

    Though I agree with what your research shows, I hope you are wrong.

    But in a way, our two biggest enemies; China and al-Qaeda, have already won. China, for owning our debt, and al-Qaeda for understanding that by attacking us in such a low cost and low tech way that cost them little, they were able to force the U.S. into two costly wars and the continued high cost of being on a high state of alert in this Country.

    Combined with our societal focus to try and “keep up with the Jones’ ” through debt and future prosperity, we may very well have done what thousands of nuclear warheads never did…destroy life as we we know it.

  • James S

    NEXT STEP EVERYONE MUST READ CURRENCY WARS BY JAMES RICKARDS. EDUCATE YOURSELVES

  • CuizCal

    We are facing three megatrends:
    1. The baby boomers retiring.
    2. The IT Revolution.
    3. The globalization of commerce.

    The first is Western in character and will last about 20 more years from here.
    The second is global and permanent.
    The third is geopolitical.

    The so-called 1% and their fascist-statist minions are intent on burying the middle class in debt, costs increases, and protracted survival issues. Why? Because anyone who sees the opportunities ahead will rejoin and surpass the outgoing 1% class. Those who shiver in a foxhole during the transition will not partake of the newfound prosperity.

  • PASCAL Philippe

    Hi !

    From my french point of view, american way is going to work longer than european way :D
    I don’t say it will last forever, anyway…

    You know Airbus, the only real concurrent to Boeing, is going to produce A320… in USA ?
    Because airplanes are sold in dollars, and USA have, once again, printed billions of dollars to mask their debt.
    From an investor point of view, when you LOOK healthy, you ARE healthy.
    Like with ppl buying expansive swatches and cars, but eating only potatoes…when they can eat.

    But it work…
    As long as USA will seems healthy, ppl will still think they are.
    And it will attract investors from everywhere.

    Even if, on the other side, more and more USA products are made in Asia.
    And more and more Americans are poor.
    But the brand, the facade still American.Greedy ppl attract money, but only for themselves, not their employees.

    Like Airbus pretending to be European : they took the money to grow, and now they leave.
    Next move : they open Airbus production lines in China.
    And Boeing do the same soon after, to be more competitive.

    This is just an example…there are thousands more.
    They try to build a prison to make us work for nothing, like in the good old days of slavery.

    And they are everywhere, not only in the USA…

  • http://www.facebook.com/people/Steven-Poole/100000930526960 Steven Poole

    Whoa. Not much has changed in year, has it — except for the amount of government and agency paper the Fed is holding. Nice job on this story!

 

 

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