Media Spin Will Not Stop the Coming Downturn
There is hardly a day goes by I don’t hear some spin about the economy and how the so-called “recovery” is progressing. Last week’s job numbers is a classic example. It seems the jobless claims fell to an eight week low. Here’s how the Washington Post reported the news, “The number of new jobless claims filed last week dropped by 21,000 to 454,000, the lowest number in eight weeks. Even more promising, the number of continuing claims dropped by 224,000 to 4.4 million.” (Click here for the entire article.) This article and others that reported the story started with Bureau of Labor Statistics hype and ended with hope the job market is turning around.
John Williams at shadowstats.com is just as disappointed with the mainstream media spin as I am. Williams is frequently interviewed by financial news networks and major publications. I interviewed him during my days at CNN, before the meltdown Williams predicted was coming. (Click here for William’s 2008 prediction on CNN.)
In his latest report, Williams writes about last week’s jobs numbers and media hype. He says, “More recently, following an interview on a major cable news network (not CNBC), I was advised off-air by the producer that they were operating under a corporate mandate to give the economic news a positive spin, irrespective of how bad it was. I know from other personal experiences that these circumstances are commonplace. A simple example of recent distortion was . . . positive hype over an unexpectedly-low weekly jobless claims number. Widely known — at least I have discussed the matter frequently — is that the Department of Labor cannot adjust the weekly claims numbers meaningfully for regular seasonal variations. Accordingly, reporting around holidays invariably results in unusually large and unexpected swings in the weekly numbers. Yesterday’s data covered the onset of the Fourth of July weekend. It would not be at all unusual to see a similarly-meaningless reverse-gyration in next week’s release.”
I say, all of this “good news” was reported when there really was no news at all. The real news is a downturn that is now hitting the U.S. Williams has been predicting this for months, and we are seeing confirmation. Williams says, “. . . the economy has entered a phase of re-intensifying downturn, a circumstance that may be referred to more popularly as renewed recession, or a double-dip recession. “
In his latest Op-Ed column, even economist Paul Krugman says, “. . . we already have painfully slow growth, very high joblessness, and intractable financial problems. And what is the Fed’s response? It’s debating — with ponderous slowness — whether maybe, possibly, it should consider trying to do something about the situation, one of these days. . . . Washington seems to feel absolutely no sense of urgency. Are hopes being destroyed, small businesses being driven into bankruptcy, lives being blighted? Never mind, let’s talk about the evils of budget deficits. (Click here to read Krugman’s complete Op-Ed article.)
It is no secret that Mr. Krugman wants more money printing and deficit spending to “fix” the bad economy. Whether you like this kind of action or not, people like Mr. Krugman are listened to by government officials–especially ones who want to win elections, like the one coming in November.
Some banking analysts are betting that deficit and money printing policies are going to win out. “Get ready for the cliff-edge,” warned Royal Bank of Scotland credit chief Andrew Roberts in a note to clients late last week. He said “monster” quantitative monetary easing (money printing) is coming and that investors should “Be long gold. Think the unthinkable. We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe), and for the global economy (particularly in the US/Europe),” Roberts added. “This all sounds somewhat doomsdayish, so we should update how the real economy/banking is panning out for us. It is saying: the end-game approaches.” (Click here to read the complete article.)
In the “end-game” it looks like inflation is going to be a major player. The only question is how long will it take to play out?
AI, like others, have been poring over predictions, watching the market, reading opinion such as yours. You are correct about the future. Preparing for the worst is something everyone should be doing, within the limits of their budget. While this behavior might further contract the economy its impact will be minor when compared to the destruction of the currency, reduction of energy availability, increased crime, and all the rest. For those who are interested in what happens to an advanced society in the case of economic meltdown I recommend goggling FerFal. His tale of what happened in Argentina from 2001 on is harrowing.
You might want to aquire a few firearms and a store of ammo. If you do, get some shooting instruction. Nothing worse than having tools and not knowing how to use them. God bless us all in the coming storm.
Greg: I look at your sight everyday since I first heard you on (sometime last year) “Coast to Coast AM”, . Your reporting is “top Gun”. Keep digging, knowone else does it at the spin doctors of mainstream media!
To add to Will’s list, if the ballot box doesn’t work, then maybe the ammo box will. I was laidoff in Feb of this, and I’m lucky, I got a part time. I now work for the same wages I made in 1984 ($11/hr), only now part time. My question for anyone out there is ” When does Government take a pay cut, benifit cut, hours cut?” Did anyone notice all those fuel efficient Ford Expeditions (7-8 MPG) that the government bought and sent over to Irac and blown up. There must have been a fire sale at ford because the police depts have been buying them too. Crazy waste of money and maintenance.
I’m 58 now and about 5 years ago I was telling co-workers and friends things are going to take a turn to the dump. Everyone said “vic your full of doom and gloom. My former employer a aerospace company here in Milwaukee has laid off over a 100 people plus the “contract workers” that knowone talks about.
Started my garden three years ago.
I have been following your blog via Jim Sinclair’s website. It is very heartening to see the Truth being spoken on both your website and Jim’s. Beyond MOPE and SPIN, end-of-the-day, the Truth will prevail and business & financial fundamentals cannot be changed. Once again, really glad to see “A” class information from you.
Round one of the stimulus did not work. Krugman suggests more stimulus to fix problems that cannot be fixed with more stimulus. If you expect to do the same action over-and-over and get a different result, you are by definition insane. I think what will be shocking about the end game is how quickly people can lose confidence in a currency. Like you eluded to, no one knows when the end game will come, but you can bet it will be quick and when no one expects it. Maybe Dec 21, 2012 (HA!)
Just how long will it take to play out? Not until everyone feels pain in one form or another. Can we stop this juggernaut of debt that leads to inflation? I just do not see it. We all have the right to the persuit of happiness, but what type of happiness do we end up with. Credit card default, mortage foreclosures and a pile of electronic circuits that becomes outdated within months. Worry from the REPO man, taking your car,on a 60 month loan, or decide either to eat or pay the mortgage. Those who are on unemployment, I can not even imagine the nightmare they face. Welfare is a government trap to enslave. Can we as a nation continue to fund these programs even if it means our own demise? We must first get our house in order financially. Then make Congress do the same. If that is possible.
Greg- It is precisely the policies of the dis-economist Mr. Krugman and other Keynesian assclowns of his ilk that have gotten us into the fetid morass we find ourselves-massive money creation through QE and insane deficit spending. Mr. Krugman’s solution- more massive money creation and deficit spending! This is akin to having a pain problem because of beating ourselves over the head with a hammer, and the solution being to continue to beat ourselves over the head with a hammer. The result of this approach will be precisely what Mr. Roberts of RBS warns of. There is no way we are going to get out of this mess without massive pain but the sooner we steel ourselves to that inevitabilty the sooner we will get to the other side. Unfortuneately I don’t believe anyone in this “government” of ours has enough courage to do what is necessary. Get ready neighbors-it’s coming soon to a town near you!
I have to agree with Will 110%. I gave up a number of years ago trying to inform a hypnotized American
public about our government. This was over 20 yrs. ago dealing with the gov’t and western land issues. I won’t bother with any detail, only it really leaves one rather disgusted and in the end, ‘the hell with it’, and sorry folks, but I gotta just look out for and care for ‘yours truly’ and immediate family. The rest out there, good luck to ya’ll!!
Great article on what is happening but let’s dig into the “why”. The top 5 mass media companies are:
-Walt Disney Corp.
Who also own:
There are more but for brevity’s sake I will spare you the entire list. The point is everything we watch is controlled by those 5 corporations who sell advertising (commercials) and would not benefit if the consumer stopped consuming. They would lose marketing dollars very quickly. Another unfortunate aspect of our media structure is that these are publicly traded companies who benefit from positive news about the market. The talking heads need to keep selling the “Ponzi Scheme” that is our stock market to the naive investor who thinks they “are doing the responsible thing”.
These two problems make them incapable of being objective and providing the public with solid unbiased information. When journalists decide it’s their place to influence the story or even become the story they have crossed over an ethical boundary from which there is no return.
There has been a concentrated effort for many years to make the United States of, for, and by the Corporation and it seems as though We The People have lost.
We are not taught Economic thought or theory for a reason. We are not taught about our Federal Reserve, which is a PRIVATE bank and is as Federal as Federal Express. We are not taught that every dollar in circulation is OWED BACK WITH INTEREST AND IS IMPOSSIBLE TO EVER PAYBACK. The Federal Reserve Act of 1913 is the greatest, longest running PONZI SCHEME in the world and Congress just granted them MORE authority and oversight of our economy.
The Mainstream Media are complicit in the cover up of the Ponzi Scheme by doing just what this article states… lying to the American public with a straight face telling them to “Get on out there and spend, spend, spend… everything is OK! No double dip recession here? Nope! No 3rd Depression? Uh uh, no way! Spend everything you have to stimulate the economy… no need to save.”
Amen Brother Greg!
This probably isn’t the most Christian thing of me but I’ve gotten to the point that I don’t even try to wake people up anymore. That is, unless they show some unprompted interest and knowledge of the subject area.
Got tired of strange looks and even stranger conversations. And a flat forehead from beating it against the wall.
Triple the size of the garden – CHECK
Supply of food in the house – CHECK (Also great for saving money on grocery bills even if nothing happens – only buy when it’s on sale = 30% savings in groceries in the last year!)
Gold and silver in the porfolio and hard assets available daily – CHECK
Cash reserves at home and in the safe deposit box – CHECK
Purchasing some need to have items now, like new tires for the vehicles before prices go up – CHECK
It’s not perfect but I follow one rule after the Ten Commandments – My kids eat first!
Keep up the good work, those who are awake are listening.