Collapse Coming–Not Recovery
By Greg Hunter’s USAWatchdog.com (Revised)
The way the latest unemployment numbers were reported by the mainstream media (MSM), you would think the Great Recession was over and the United States was solidly on the road to recovery. The Associated Press reported the numbers by the Bureau of Labor Statistics (BLS) with a story that said, “The United States added 227,000 jobs in February, the latest display of the breadth and strength of the economic recovery. The country has put together the most impressive three months of job growth since before the Great Recession. The unemployment rate stayed at 8.3 percent. It was the first time in six months it didn’t fall, and that was because a half-million Americans started looking for work.” (Click here for the complete AP story.) I don’t see how the MSM can say this one number is “the latest display of the breadth and strength of the economic recovery.”
Cyclical and structural unemployment are gripping the nation. Certain jobs are gone forever or, at the very least, for a very long time. Maybe that’s why millions of people have given up even looking for work. Forbes.com reported, just a few weeks ago, millions have stopped looking for work, and the government has stopped counting them. The report said, “In the latest, much celebrated, unemployment report, the labor force participation rate had plummeted to 63.7%, the most rapid decline in U.S. history. That means that under President Obama nearly 5 million Americans have fled the workforce in hopeless despair. The trick is that when those 5 million are not counted as in the work force, they are not counted as unemployed either. They may desperately need and want jobs. They may be in poverty, as many undoubtedly are, with America suffering today more people in poverty than in the entire half century the Census Bureau has been counting poverty. But they are not even counted in that 8.3% unemployment rate that Obama and his media cheerleaders were so tirelessly celebrating last week.” (Click here for the complete Forbes.com report.)
While we are on the subject of unemployment and poverty, the number of people on food stamps jumped to more than 46.5 million in December 2011! It is a new all-time record. How can the nation be in a true “recovery” with increasing numbers of Americans on the government dole?
According to economist John Williams of Shadowstats.com, the latest good news about job creation is distorted with what he calls “massive seasonal adjustments.” The latest Shadowstats.com report, last Friday, said, “With heavy warping of the seasonal-adjustment process from the effects of the extreme nature of the current downturn, the resulting employment gain and unemployment rate level remain of questionable quality and significance.” If unemployment were calculated the way BLS did it in 1994 or earlier, the true unemployment rate would top 22% according to Shadowstats.com. Williams also says, “The outlook for the broad economy remains bleak, despite relatively upbeat February payroll data. Bank lending remains impaired, while household income has taken a new hit, as indicated in recent reporting. Separately . . . annual and monthly growth in the broad money supply appears to be stalling, again. That likely is a further indication of mounting difficulties in the systemic-solvency crisis.” (Click here to go to the Shadowstats.com home page.)
“Mounting difficulties in the systemic-solvency crisis” means, in reality, it is more likely financial collapse is coming—not recovery. Maybe that’s why the Federal Reserve recently announced it is going to start another round of money printing because the economy is teetering on an abyss. Marketwatch.com reported just last week, “Federal Reserve officials are considering a new type of quantitative easing that will attempt to boost the economy without accelerating inflation, according to a report published Wednesday.” (Click here for the complete Marketwatch.com story.) If the economy was in a real “recovery,” why would the Fed want to “boost the economy”? The Fed also announced at the end of January it would hold a key interest rate at 0% through 2014. If the “breadth and strength of the economic recovery” was so powerful, wouldn’t the Fed be hiking interest rates? Of course it would. The fact it is keeping them at zero for years and starting a new round of money printing is signaling the economy is in trouble, not in a so-called “recovery.”
Even near record low interest rates are not helping the morbid housing market to recover. According to the latest Case-Shiller report, home prices were down nearly 4% at the end of 2011. What kind of a recovery features near record low interest rates and falling home prices? Also, millions of empty houses are sitting on the books of the banks, and millions more are headed for foreclosure. Shouldn’t home inventory be shrinking in a real “recovery”? It is not, and that’s a fact!
Finally, if there really was a recovery, the government would not be hitting record deficits month after month. The deficit would shrink as the economy got better wouldn’t it? (Think Clinton era.) Instead, the Federal deficit is exploding! The Washington Times reported, just last week, “The federal government recorded its worst monthly deficit in history in February, according to a preliminary report Wednesday from the Congressional Budget Office that said the deficit in fiscal year 2012 is already more than half a trillion dollars. . . . The nonpartisan agency projected the government will run a deficit of $229 billion in February, the highest monthly figure ever.” (Click here for the complete report from the Washington Times.) That means the government spent nearly $8 billion more than it took in each and every day of last month (29 days). This is not a sign of economic “strength” but of tremendous weakness.
You cannot print your way to prosperity, but it can pave the way to an economic collapse.
I turned the MSM off a couple of years ago. As a Die Hard Republican, allow me to say that I hate FOX News just as much as CNN and all the others. I do however, support Dr Ron Paul for he is the only candidate with a plan to fix the ecconomy and banking system.
Yes, great article Greg. Always look forward to reading your articles and your Friday video’s.
I get my news now from Alex Jones, Zerohedge, SGT Report, Bob Livingston, Bob Chapman, Gerald Celente. Just to name a few…
i dont watch TV but its so frustrated when your family and friends talk about that this country is in a recovery, that the we added more jobs.
i guess is only a few that knows the real problem that is ahead of us. thanks for the great article.
“There are three kinds of lies: lies, damned lies and statistics.” Attributed to Benjamin Disraeli by Mark Twain.
More main streem media lies caught in the GOP voteing.
Its amazing that because people don’t see the breadlines they think everything is fine. I always ask this question. Try to think of one recent retiree who was able to retire from their investments, 401k or just plain savings. I am speaking of those who didn’t need or have a pension. I can’t think of one person I know who was able to do this. Now pensions are gone so where does that leave us in 20 years? Less people retiring means less jobs opening up due to retirement. We will all be fighting for the crumbs of a disappearing pie.
So keep trucking along in your Prius with your Obama 12 bumper sticker sitting in ignorance. It’s much more comforting than knowing what is coming around the corner. When we get uncomfortable and desperate due to the lack of money and food to sustain ourselves and our family we “will eat each other” as the Joker says in The Dark Knight.
This goes well beyond Obama, he’s just the face your presently given to love or hate so don’t forget to include the ignorant fools with the Romney, Santorum and even Newt stickers. The right “man” for the job is the one that’s ridiculed and ignored; you know, that one that’s been right for the last 30+ years, the one that hasn’t sold out and been bought off, the one that’s stood fast with his ethics, morals and principals and one of the very few that upholds his Oath.
Choose America, freedom or slavery there’s one last chance to get it right and by the looks of it that chance may never come.
why doesn’t the Occupy movement move over to the MSM headquarters throughout the country with these stats and demand fair reporting of the news and events. How long will Americans continue to accept the bad reporting tht is going on. Maybe we’re all going about this the wrong way. Instead of focusing on politics and election news, why don’e we seriously look at the MSM and let them know we know what they don’t want us to know. If enough people were to show up on their door step and outside their morning show window then they would be the news instead of covering up the news. We as a people have identified this as a problem for a long time but continue to allow it to happen. If we can’t hold our Government to a higher standard then maybe we can hold their minions to a higher stanard or draw enough focus from the politician so they miss the action. Let’s make the news services the news.
While I see little in way of recovery, I do not see collapse in our future either. What I do see is a long period of high unemployment and continuing but not hyper inflation.
The good news is that this kind of austere economic climate is actually just the right medicine for a culture that is addicted to materialism, and living on debt.
Just as in the past, the generations that are raised in tough economic times learn from the mistakes of the generations before and eventually change the culture.
Joseph in the bible was given a heads up on 7 good years followed by 7 yrs of famine and to stock up for the 7 bad yrs which ultimately resulted in the slavery of the hebrew people,it all started when the money failed in the land of egypt. we were given our warning from the stock crash of o8 when the deficit hit 666 millon year to date, the stock market fell 777 points or 7% and gold closed at $888. 40 years is the historical time period that any country that adopts a fiat money standard survives before it inflates that money out of existence. 1971 nixon removed our moneys tie to gold. 40 years in the bible is a probationary time period 1971+40=2011 we are on borrowed time as far as the dollar goes, tie that to the 666,777,and 888 all occuring the day of the collapse,this was the begining of the 7 good years followed by the 7 bad that will begin on or before 2015. the removal of our money from gold was an act of default and a declaration of bankruptcy We have been bankrupt 40 years now and the dollar will implode at any time between now and 2015.
The MSM & Wall Street are using any thing they can get to announce a chicken in every pot to get the President reelected and continue as CNN announced last weekend “4 straight years of bull market”. Such folly. Another view and announcement by Art Barnes is “longest bear rally ever known” and as the old saying goes “beware the bear rally”.
Greg, the U.S. Government & the Fed truly believes you can print yourself out of a recession and into prosperity, its been their theme (hidden policy of course)since at least 1970. Even if a bunch of jobs are created at $10-15 an hour, after at least two gallons to get to work, high car insurance to drive there, and maybe a car payment and or basic upkeep, food and basics such as some cheap clothes, that job just make that person the “working poor”. These so-called jobs that were created are not the jobs of my era, you can’t support yourself much less a small family on them. America is slipping into a third world status for the basic working person. A better and truer announcement would be “working into poverty”. I wonder what the job number would be if it was calculated on how many jobs were created that can support a small family; probably 5 out of 500, if that! So Greg, even if those jobs announced are real, they are not “real” jobs of quality and will not sustain long term growth only short term profits.
Recovery … LAMO … another great article Greg…. an estimated 4 million homes that are already deliquent are now being fed into the foreclosure pipeline … in-addition to the current numbers that are listed!
The de-leveraging and shifting of the responsibility for the loans is now in progress and the bad debt is being shifted to taxpayers a round the world ……
Corporations serve shareholders and exist to make a profit for them. Corporate profits are looking pretty good. Tax incentives to business in the U.S. looks pretty good at all levels of government. That money should be trickling into the American economy. But, it seems increasingly to buy goods that are made outside the United States.
The corporations are recognized as “persons” entitled to redress of grievances before the government, yet they are not obligated to show loyalty to the government that gives them status and provides a military in foreign lands to give them security. They are the job creators.
Government serves the people of the country. It is not an employer except to provide services and provide a safety net. If there is a “collapse,” does this mean a collapse of American capitalism? As I see it, as long as you have people, there will need to be government. Government will be left to hold the “family” together. This mentality of all of this reminds me of the big civorce experienced by couples in past decades and one parent is left with the children. Will there be any spousal and child support? Will the kids grow up to be responsible citizens, spoiled brats or hoodlums?
Hi Greg, thanks again for the real news.
Has anyone attempted to quantify how many small contractors/suppliers have been utterly destroyed financially since the housing crash began? We do not get counted as UN-employed do we ?I have been in the home building industry since 1978, worked VERY hard only to be continually lied to and scammed by our own government.( the feds fiat money/intervention in all markets) I for one am sick of it.Never again will I hire an employee or stick my neck out to get it chopped off by the criminal elites running this country. At the very least, it would be nice to see someone go to jail. The rule of law is gone, we are no longer a constitutional republic, but a banana republic. What do we have when the Attorney General is an criminal gun runner ?, and the wimpy congress asks him nicely to resign ? What happened to the good old days when the local sheriff and the citizens would form a posse and chase down the BAD GUYS? For your friends and family who still don’t get it ,ask them to turn off the TV and read the Constitution/Bill of Rights and Declaration of Independence. It is truly sad to see what we have become as a Nation.
It is not just trust that is lost, but the ability to assign value. How can one possibly know the “value” of complicated financial instruments like derivitives? The power to assign value has been given to criminals, by criminals, and therefore the concept of value has been corrupted. That is why a fireman or nurse is “worth” $60,000 a year, and someone who sells derivitives is worth an inflated salary and a 20 million dollar bonus. Municipal services are cut back, the fireman and nurse are forclosed on and lose their homes. Neighborhoods decline while massive funding is channeled into a police state apparatus to protect the original criminals, the banksters, from anyone who may object to all of this. We have to ask ourselves not only who do we trust but what do we value. We are lost at sea and need a constellation that we can trust to rebuild what we value.
Prepare like your survival depends on you and pray as though your suvival depends on GOD……faith without works are deads.
The new awakening is coming, then lets see how the MSM will spin the news after most have lost every thing backed by paper! What most people don’t know is that the European Central Banks ‘Mark their Physical Gold Holdings to the Market Prices Each Quarter’ while the U.S. still prices the U.S. Physical Gold Holdings at $42 a oz. How long befor the paper market splits from the physical market? I would hate to be holding paper gold or even stocks or bonds. This day is coming, when who knows, but the premiums on physical will be a sign until no one will let go of any physical at any price,IMHO.
Greg, historians will have lots of work, just might be a good job! Thanks again from the group!
Let’s just say it is still growing, 20 families+, met old military farmer today I had not seen since 1977, he had a Ron Paul hat on! These are the most gental & smart people you could meet & great hunters!!! So Greg, the group grows with knowledge & it’s spreading amoung those who like more & you help!
Thanks greg for confirming my suspicions regarding the Presstitutes so called recovery
I blame all of this on obama. I don’t believe I exaggerate when I say, his personal mandate is the destruction of America. What is astonishing is how quickly he has been able to fulfill it. Granted, he came in at right after the Oct./09 collapse but he had two ways to go. Help or hinder. You know what he chose. Do you think
Sorry, I didn’t quite finish. Do you think the GOP has a chance to defeat obama. Thank you.
Obama ran on bring the troops home. I vote for him just for that one reason. The fake money system we live under is supported by Congress, not by whoever sits in the White house.
The fake war was supported by both parties in Congress. They needed oil control to keep the dollar from becoming worthless.
The EU needed control of Libya to save there worthless banking system.
I will vote for Obama are Dr.Paul, both will bring down the fake banking system in there own way. The most important part who will stop telling lies.
Obama has been telling lies but would Ron Paul be much different once in the hot seat.
Who can undo this mess and at the same time change the way people think. We can produce the things people want are need with a small work force. What are we going to do with the needed people. I can say education is important but not for producing but to learn to get along.
Congress is the great satan, has lied and failed this country. You can pick when it started but for me it was when Kennedy was killed.
Ya, as a baby boomer who watch this mess growing over the years. People say why didn’t you stop the madness. I say who had time after a long work day in the dirt. The insiders in DC worked 24/7 making this mess, who could stop people like that. peace lol
I feel like heaven just opened it’s gate and through the gates floated…..THE TRUTH. Thank you Greg for always giving us the dirty truth.
The bad news: Mortgage fraud continues…
The good news: some Tide fell off a truck in front of my refrigerator box…
Stop saying there’s no Easter Bu—I mean Recovery, Hunter!
Eventually when the brainwashed masses figure out they’ve been lied to,too late, with empty store shelves and so many bellies start to feel what they thought was impossible to feel in America the streets will get even bloodier and crazier than they are now in March.
The criminals in Washington already know what’s coming because they’ve engineered this destruction and have prepared accordingly and that is why DHS is patting down the average law abiding citizen and Big Sis has her eyes on your breast milk and the unpasteurized cow’s milk of the Amish.
Not to be cynical, but does anyone honestly expect a turnaround in the thinking of the average American? I seriously and sincerely doubt it. We see a steady of progression of laws and executive orders that enable warrantless monitoring and searches, arrests with no evidence, critical restrictions against bill of right guarantees, and much, much more. Yet there is still practically zero citizen outrage or protest.
Why not? Because people don’t care enough to pay attention. Seriously. Pay attention to what people are talking about around you. Sports. Television shows. Cell phone apps and service. Movies. Their favorite restaurant. Their unemployment check. Or taking advantage of low interest rates.
Why do they refuse to discuss and protest the most impact.and important things in their lives? They don’t care. I used to blame it on people being deceived by lying media and not knowing better. But I’ve changed my mind. Most people have heard the truth by now. They choose not to listen. They don’t care.
If they cared, they would be researching the facts and doing something about it.
Greg, the TPTB will continue down this road until they can’t. Visualize it this way: In this chair dance, they have to keep dancing because actually all the chairs are gone.
I pledge to write in the name of Ron Paul and hope others will do the same. Any other candidate running or the current wretch in office = bye bye America. This MSM media is full of treasonists who covered up the Obama Birth Certificate and selective service card investigation and hardly a peep got out. Go to Worldnetdaily and see the video evidence of this crime which was thoroughly investigated by professionals and exposed as a fraud on the American people. Go Ron Paul
Let’s look now at the kind of jobs that were created. Of the new jobs reported by BLS,
92 percent are in services. Of this 92 percent, only 7 percent could possibly relate to exportable services: architectural, engineering and computer systems services. for the full artical.
I try to add to the conversation on your site only to realize every thing i have, has been said. So much info from this site,It quickly makes me feel dumb…LOL However im glad. Keep up the good work.
As usual– your writings delineate the MSM bias and propaganda. The stacking of the major journalism renowned colleges with leftists if not Communists has resulted in the destruction of objectivity and obfuscation of truthful reporting. What I have always found fascinating is that the tyrants of the past never failed to silence “the truth” and never would have dreamed that their message would be printed willingly, think; Hitler-Stalin-Mao-Castro-Chavez etc. Our founding Fathers knew this of course and made it the pivotal point of our rights— The right to a free and unobjective press — And of course– these same despots would have summarily executed those righteous free-thinkers who dared challenge them. SO — what we have now is what “Uncle Joe” would have deemed –“Useful idiots”.
Too many examples to list but certainly the most recent treatment of Limbaugh (who apologized) to Maher (who didn’t- maybe the 1 million dollar contribution? – NAH) to the absolute travesty of not reporting on the continual loss of freedom of this once great bastion of freedom.
Think: Legal assassination of any American deemed a “traitor” to 20,000 surveillance drones over the U.S. by 2020 — by the way– this is not a party issue but an American civil rights issue–where is the ACLU anyway?
I wish I could be funny but this is deadly serious– where is our once proudly independent press?
If one really wants to learn what money systems and currencies are and their history, read The Lost Science of Money by Stephen Zarlenga, or go to The American Monetary Institute, http://www.monetary.org/ for a vast eye-opening amount of research and what we can do about them.
As his logo states: “Over time, whoever controls the money system,
controls the nation.” Stephen Zarlenga, Director
And surprise, surprise! The Problem is NOT fiat currencies, per se. The REAL problem is the illegal and unConstitutional use of debt to create currency by the Fed Res Bunco -Oh, I meant Bank!- to profit its private owners. Nor is the use of Gold & Silver [G&S] a panacea for our ills, although G&S are one kind of currency in our monetary system.
I am an ex-pat in Canada since 1969, age 25, and can tell you our currency is parallel to Australia’s in its role as a commodity-backed system. This costs us dearly as we are increasingly less competitive internationally. However, that will pass in time, and is a lesser problem than the fact that the Central Bank of Canada is NOT doing what it was intended for: to create currency and regulate the monetary system via interest rate adjustment. Instead we increasingly let the big private banks do it, so we now approach the deficit crises faced by the USSA [sic].
FDR rightly called Wall St criminals the ‘banksters’ of his day: the same tactics but on a grander scale were repeated recently, and caused our current Greater Depression.
By the bye, the Fed Res Bunco boys have boilerplate speeches they drag out to use over and over to subdue the sheeple. The phase “green shoots of recovery” were written seventy years ago. So, how do you like your hopey changey thing now?
A Jeffersonian revolution is WAY overdue, but it will never happen under IBM Fascism, a term I coined about thirty-five years to describe what we should expect: corporatism as the New American Way.
Nicely written. Your article/data support the conclusion regarding a collapse. I’m interested in how the boomer retirement figures into your conclusions. It appears as if 10,000 boomers retiring daily would affect the unemployment numbers and collapse predictions. Would it be as likely that we’ll have a gradual “unwinding” in most markets as boomers stop working/paying and start collecting benefits. Also, they’d trade in the “big house” for condos, keep the mercury marquis, switch from stocks to bonds, and generally relax/reduce spending? Also, labor isn’t as important an indicator since we have several hundred million Chinese doing the work now. And what national gov’t policy, if any, can help soften the blow of 70 million boomers exiting the workforce? This looks like the “perfect storm” for an extended economic maliase. Or have I been reading too much again.
Where are the opportunities?
Most commentary one reads here from readers involves a lament or critcism for the deplorable state of the MSM. But perhaps the citzen should better wonder at what this decline means in the long term. Like a loss of confidence in government a loss of confidence in the MSM is a progression that does not return to the mean. What is lost is lost forever. This is another way that one can confirm that a state is terminal and a return to credibility for the MSM means that it too must collapse.
Love this article, so glad the truth is coming out and more people are waking up and preparing for the crisis, it will hit soon. I left the United States over 40 years ago and feel we are safer for the moment up here in Canada, but the collapse will hit us all no matter where we are. We are at the very end of the Biblical end times. Our only hope is trusting in God, He will always be in control. Hang in there, get right with God, prepare, and get ready.
Well, Mr. Hunter, today in its “Morning edition” the National Public Radio, (NPR), announced the ‘signs of a great recovery’ of the USA’s economy. Do we need to consider the NPR as a part of the MSM, or something else? Or, are they just “copying and pasting” what the MSM is serving to our public on the silver platter?
It is very confusing to listen what the radio people are officially broadcasting, on one side, and all the intelligent commentators are writing here, on the other.
Why debts and budgets no longer matter?
Note, this was a question to pique your interested, not a statement to display my ignorance.
Yet, In Obamaland, the question has become an exclamation point. Who needs a budget! We can just keep raising the debt ceiling, and the compliant Congress makes noise, but in the end votes for it. We cannot, after all, shut down the government! Who needs fiscal sanity! We can print money, the Fed buys our government debt, even if other nations are selling US debt. Who needs customers for debt! We create our own demand.
I’m sure this will work! Payday will never come! Or at least, not before Obama losses the next election. Trust broken, as Larry says, cannot quickly be restored, if ever.
Well, I hate to say it guys but my broker has given me sage advice “don’t fight the Fed”
I have been holding gold and gold stocks now since 2007, yes, the bullion has done very well. The problem? Gold stocks have been a horror show! Pretty much all of my gold stocks are currently priced at levels when gold bullion was half the price it is now.
Fundamentals do not mean a damn thing anymore.
The XLY (an ETF that represents consumer discretionary) is at all time highs.
Who needs oil, gold and food when you can get an iPad 3 ?
I suspect that for the upcoming months we will see the DOW absolutely soar! Gold? we might struggle to stay above $1600.
I am not knocking gold here but the markets are nothing more than a giant Casino.
The FED already is in QE3!! but they say they are not…the mindless market believes this lie.
Never forget that this is an election year…the FED will stuff a super charger down the mouth (pick your orifice) of the general equities market, they will use billions (if not trillions) to suppress the price of Gold and commodities.
Bottom line “DON’T FIGHT THE FED” !!!
“The unemployment rate stayed at 8.3 percent. It was the first time in six months it didn’t fall, and that was because a half-million Americans started looking for work.” That means that people are starting to look for work that weren’t looking before. That means your 63% number will be falling. Whatever. The greater point is you’d like your readers to think things are getting worse when the are actually improving. If you convince enough of us that we need a GOP president and congress to “fix” things I’m sure you’ll get a second chance of destroying economy, but for now, with cooler heads prevailing and policies that don’t giver EVERYTHING away to those with the most (and least care for the rest of us), things are looking up for the first time in quite a while. For my part, I’ll be fighting for a Constitutional Amendment outlawing private campaign contributions and voting for Obama this Fall.
Thank you for the article. I recommend your site to all our friends in Japan and U.S
As a Romanian I look up to the American people, the freedom that you have, your bill of rights, your Constitution. All I can say is : communism and living in the police state is a prison for a free human being.
Keep up the good work, Greg!
“No Export = No Recovery”… Ponce
What is going to happen will last for generations and not for weeks, months, or years.
“If you don’t hold it, you don’t own it”… Ponce
Be ready and you will not be sorry, buy physical metals.
The lies are clearly transparent to those with eyes to see. This article is but common knowledge with common sense culminating from a critical thinking point of view…Try this one on for size.
The truth about the tyranny is coming out due to this awesome tool, the internet. That’s the reason they work so hard to gain control of it. So, the truth of their tyranny is becoming well known, they are being backed into a corner. They will fight their way out, in order to do so they will need a diversion. With the economy crashing and the truth becoming more and more prevalent, they will have to come up with something to divert the useless eaters from recognizing the ultimate truths. Iran is being positioned for this. WW3 is likely to develop along this path. The Republic as we know it is over. The new reality will end up being death, destruction and genocide, as history will attest. Get prepared, educate others. God, guns n grub. Come Lord Jesus.
Useless eaters is their mindset, not mine. I pray everyone who reads this recognizes that we the people have but one real hope outside Paul, and that is our fellow citizens. Each of us must prepare individually or collectively we will become subject slaves to the new world order. The truth is extreme, to make it moderate would be a lie…..
bring back the Ottoman Empire!
There is a nice article by Daniel Amerman, explaining how the government manipulates the unemployment rate to look good by manipulating the unverifiable “workforce participation rate”:
The one thing that bothers me about this reporting is the bit about the deficit and debt. I am an MM&Ter (Modern Monetary Theory). Since we have the world’s reserve currency, and it’s a fiat currency, the debt actually doesn’t matter at all. It is not fictitious, but meaningless in the context. Time to focus on financing the recovery. So long as the government spends on buying real things (like infrastructure, education, research, start-up loans for small businesses), there is no meaning to the deficit and debt. This is fact. Read the massive number of articles on the New Economic Perspectives website. The worry about debt and deficit is fueled by the politicians who subscribe to the completely discredited Friedman and Hayek School of Economics started at the University of Chicago in the early 1950’s. If you want to know, it focuses on “trickle down” economics. Read Naomi Klein’s wonderful and scary book The Shock Doctrine if you don’t believe me.
Thank you for another courageous and timely article, Greg. I say “courageous” advisedly because, in the words of George Orwell, “In a time of universal deceit — telling the truth is a revolutionary act.”
Aleksandr Solzhenitsyn once wrote of the former Soviet Union to the effect that “the Lie has become a pillar of the state.” Sadly, that is also true of the United States. Literally nothing emanating from Washington, whether the “official” unemployment and inflation rates or our glorious “victories” in Iraq and Afghanistan, is true. That much is obvious. However, what is really frightening is the cavalier ease with which the political establishment spins its web of lies. Such is the contempt that the Washington establishment holds for the American people–and Truth–that it no longer cares that its lies are not believed. That could be the precursor to social, economic, and political catastrophe.
Thank you Frank for adding to the content of this discussion.
Thank you Greg for his brilliantly documented article! After this piece, there is nothing left to do but to turn the MSM off our TV screens, when the broadcasters start dancing around the truth in connection to our jobless numbers and “strong economic recovery”. It is an intellectual terrorism to listen to all those corrupt broadcasters who are assuming that our population is brain-dead. In other words, by constantly putting ‘the lipstick to the lips of pigs’ will not help in improving the pre-election atmosphere, because the truth and facts cannot be hidden indefinetely.