The Sheer Absurdity of the Recovery Story

Phoenix Capital Research's picture

At some point, someone has to call BS on the entire talk of the recovery.


Since 2009, we’ve been told that things have improved. The fact of the matter is that the improvement has been largely due to accounting tricks rather than any real change in reality.


Sure you can make unemployment look better by not counting people, you can claim the economy is growing by ignoring inflation, you can argue that inflation is low because you don’t count food or energy, but the reality is that all of these arguments are grade “A” BS.


We are now five years into the “recovery.” The single and I mean SINGLE accomplishment from spending over $3 trillion has been the stock market going higher. This is a complete and total failure. Based on the business cycle alone, the economy should be roaring.


What does it say that we’ve spent this much money and accomplished so little?


The word is FAILURE.


The media is lying about the economy. They have been for years. Even the BLS now admits that its methodologies are either inefficient (read: DON’T work) or outright wrong.


And yet alleged “adults” continue to believe this stuff. I don’t get it. Is it mass delusion or are people really willing to believe a lie rather than what their own eyes tell them?


If your dentist told you, “oh your teeth are fine” does that make your toothache go away? Nope. But for some reason people listen to the Fed and media make absurd proclamations and no one says anything.


At some point, likely not too far in the future, the entire market will come crashing down. The Fed bet the republic that its misguided theories would play out. This is what happens when you entrust academics with ZERO banking and business experience (those who have never made loans, managed portfolios, hired or fired people, made payroll, etc.) decide how the economy should operate.


When this happens it’s GAME OVER. There will be nothing the Fed can do.


For a FREE Special Report outlining how to protect your portfolio from this, swing by:


Best Regards

Phoenix Capital Research 






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Phronesis's picture

I'm not as impressed by this thesis as y'all. There's no information in the article, no evidence. I thought ZeroHedge was a technical, almost scientific site about economics. I'm confused by all the conspiracy theories, and I'm wondering what kind of economic news would make you change your position about the recovery.

This is a bit of a tangent, but only a bit. I read another article here yesterday about someone visiting a gold vault in Canada, and stating that they had seen X amount of gold and Y amount of silver. It was a very vague and sketchy story, with unclear sources. Apparently these numbers were underwhelming to ZeroHedge. But the article said that the RCM produces such and such amount of gold a year, and the vault (of a private bank) had much less. That's a stumper to me -- what does RCM's annual production have to do with what a random private bank stores in its vaults? It made no sense. But everyone was chortling about how all the vaults are empty. I see this same kind of conspiracy mindset here.

I have a hard time believing that the people at the Fed, Treasury, White House etc. would so straightforwardly lead us into disaster -- that you all know more economics than they do, and are smarter than them. But the big issue for me is that virtually no one is going to motivated to trigger an economic disaster. They care about their legacies, their image and reputation -- and they have no reason to destroy the American economy. It's not realistic, psychologically, that they would want to cause ruin. Presidents also care about their legacies a great deal, and Obama is young, so he'll be around for decades after he leaves office -- the last thing he would want is to be this hated villain who caused the Great Depression of 2019. They're politicians -- they want to be liked and admired, not hated.

I'm not saying that their policies are good. I'm just saying they're unlikely to be as stupid and destructive as you all seem to assume. Their big mistake in my view is that they never step out of the government frame -- they don't even think about a free banking system. It kills me when economists write these comprehensive papers on monetary policy and currencies, and just assume that money of course is something governments have to create, never fleshing out the free banking option along with all their other models -- it's so strange. I don't think they have good arguments against a free banking system -- they just don't even think about it anymore, they got no training in it. And I think economists are systematically biased by the opportunity to be at the controls -- smart people have a natural bias stemming from the fact that they know they're smarter than most people, which leads a lot of them to think they can run things better. But central banking has been around for a long time, and it works well enough. We get crises every now and then, or recessions, but all the economic progress that happened over the past 100 years happened with a central banking system. It doesn't appear to be catastrophically flawed. It's certainly not the best system, but I really don't think we're in for a crash. They don't want to be in the history books for that.

tlnzz's picture

The public likes the lies until the truth slaps them in the face. That slap is coming soon.

joego1's picture

Yes the government will continue to feed us this propaganda until it's all just a drone in the back of your head.

Radical Marijuana's picture

Several of the previous comments have pointed out the PROBLEMS regarding notion that recovery is return to achieving economic growth, which has become increasingly problematic due to having already high-graded natural resources to hell. Our fundamentally fraudulent financial accounting system, which was the result of the best organized gang of criminals, the biggest gangsters, the banksters, being able to apply the methods of organized crime to take over control of the government, is the leading symbolic expression of the deeper problems that planet Earth is a finite, and that being able to turn more and more natural resources into garbage and pollution faster and faster therefore has real limits, which we were approaching at an exponentially accelerating rate.

The financial system is the leading symbolic indicator, and the most extreme example of the deeper nature of these problems, and also why we are collectively responding to those real limits with the maximum possible deliberate ignorance. Theoretically, what we should be doing is developing a better evolutionary ecology, both in human and industrial ways, that could be better reconciled within the natural world. However, our combined money/murder systems are actually built on top of the maximum possible deceits and frauds, which make rational public discussion about any other real death controls, backing up the real debt controls, practically impossible to engage in.

Indeed, 2007 was the last "normal" year. The "new normal" is related to the basic problem that more exponential growth, like was possible for thousands of years, is no longer as possible, and is becoming more impossible faster. There is no way for the current systems to continue to indefinitely grow at an exponential rate anymore. However, the social pyramid systems that have been doing that, throughout thousands of years of the history of Neolithic Civilizations, are based on continuing to deny that, while continuing to keep themselves going, by driving their debt slavery, backed by wars based on deceits, to continue to grow, and double and double, like they used to be able to do for a long, long time, indeed, throughout almost all of known human history.

The problem that the American economy is not actually making a "recovery" is a relatively trivial manifestation of those bigger problems that we, one way or another, sooner or later, will be forced to develop a different evolutionary ecology regarding human and industrial activities. However, at the present time, that looks practically impossible to achieve in any sane ways, since the established debt slavery systems have already generated numbers which have become debt insanities, which can not sustain much more growth within their current structures. The deeper problems are that the only realistic solutions require radical transformations of the combined money/murder systems, BUT, those entrenched social systems were based upon being able to maintain their own runaway deceits and frauds, about themselves, which precludes them recognizing or admitting the nature of the political problems which result when their exponential growth is no longer possible.

That problem has always been obvious to a few intellectuals, but has been able to be deliberately ignored by the rulers, and most of those ruled over. We are rapidly reaching a point where that problem will become more and more obvious to more and more people. However, so far, the public responses to that have been deliberate denial, along with religious repetitions of the mantra of returning to "normal" by a recovery as expressed by economic growth.

The ways that the government and mass media have been spouting BULLSHIT about that recovery are symbolic indications of the overall breakdown of the basic social pyramid systems, which require endless exponential growth, to continue to exist in the form that they have now. I.e., there must be more money made out of nothing, as more debts ... BUT, the magnitude of the numbers of the current debt slavery has become debt insanities, which can not sustain much greater increases in total debts. The basic money-as-debt system, which was the result of the triumphs of the application of the principles of organized crime by the international banksters to be able to take over the government, and legalize their lies, while the government agreed to back up those legalized lies with legalized violence, is reaching some real limits, both in terms of what is socially possible, as well as with respect to many more objective aspects of the amount of natural resources which can be discovered and developed. Both the degree of social polarization, as well as the degree of the destruction of the natural world, are making more of those trends tougher and tougher to accomplish.

It is clear to most people who study the environmental aspects of this situation that the financial aspects are likely to be the first places where the crazy collapses of those systems manifest. However, there are way deeper problems behind that, which are driving it to happen! Tragically, since our real human ecology and political economy is actually based upon the history which made deceits and frauds become the most successful strategies, any more rational discussion of these basic problems is almost totally impossible within the context of our contemporary politics.


MeelionDollerBogus's picture

fundermentalz don't matter no moar. We can PRINT new earfs to grow food from & Detroit clone-cities!

logicalman's picture

The early stage of exponential growth looks manageable, it's the bit towards the end that gets you!


Clowns on Acid's picture

But RM - The NFL playoffs are on. Just think of all the "NFL team jerseys and hats" that will be sold and all of the bars and restaurants that will be filled.   

Then comes the Super Bowl.

Gusher's picture

I agree completely with the posted story. There has been NO recovery. And whoever posted that it was because we are running out of cheap oil and Nat gas is a fool. THAT is NOT why. We are awash in oil/gas. I see factories laying off and closing. I don't see any new ones opening. NONE!!! Obama is a disaster. He inherited a tough economy as did Reagan, and then did everything the opposite that Reagan did and the results are in.  WE ARE DYING!  But there is hope. It's Obamacare.  It's going to save us, because it is a wakeup call to all the idiots who voted for O-Fraudo.  Some of them are actually finally figuring out that they are losing fairly good insurance and getting crap in exchange, because of Obama, and hence will vote Repub this fall.  Let's hope the Repubs can take advantage of this and save the country when they win big in Nov. 2014.  But if they go RINO on us, we are finished. 

MeelionDollerBogus's picture

Hardly. Less every single day above-ground & in any wells.

-1 for you despite the initial admission of truth the recovery is a fraud. It's always about land, food, energy - money is just a proxy to get it.

kwatinhu's picture

Got news for you pal, they're going RINO on  steroids, see the attacks on Mark Levin. Levin for God's sake!!

LastAgeRN's picture

I agree, for this government it's RINO all the way. Jessie Ventura says it best, our current 2 party political system is simply a two headed snake. Some people argue for a 3rd party. My question is: why does there have to be ANY parties?!? Just imagine, your elected representatives just doing their job instead of spending soo much time battling the other party, what a concept!!

HardlyZero's picture

Cruz and a converted Issa may be a very strong ticket.

meterman's picture

Could it be that contrary to what the liberal historians teach that the French had a great idea when they invented (and used) the Guillotine? How about it ZHers, should we use the French solution?


drstrangelove73's picture

No,that's a terrible idea.Visit the Bastille sometime and let them tell you about how they rolled.
Ever read Edmund Burke?

AngelEyes00's picture

The primary problem the world economy has is flat crude supply since May 05 and dropping EROEI, coupled with growing underdeveloped economies (china & India) demanding more oil.

Our modern complex infrastructure was built on a cheap, abundant, ever increasing flow of energy fluid, oil, which can be used in so many different ways, particularly transportation.

Flatten the flow and scrape the bottom of the barrel (tar sands, fracking) and the energy return on energy invested to extract, process and refine goes down and with it profits, taxes received, causing increases in debt and desperation to employ radical policies like QE/Zirp/& huge debt increases.

We need a certain amount of cheap energy to maintain infrastructure and grow the economy.  We are now below that threshold and that's why there are all the govt. lies and fancy fiscal follies by the Fed.

Derivatives are in a sense the multiplier used to expand the perception of growth, but stands as the thinnest webbing holding business as usual together.  It was necessary for the govt. to allow a resurgence of derivatives after the 08 mortgage meltdown because without it collapse occurs much faster.

Collapse is insured, no way around it.  All the fancy fiscal follies and lies are simply last ditch efforts to keep the populace in check and maintain business as usual as long as possible before all hell breaks loose.   

Winston of Oceania's picture

Then what would we adorn our street lamps with?

wisehiney's picture

Rope is cheaper, easier, and most importantly quicker. So many assholes, so little time. I just hope we have enough stout limbs for the fat fuckers.

I like the way you think though.

rsnoble's picture

Hurry!  We need those goddamn guns the children aren't safe!!!

Just another day on crazy rock.

scraping_by's picture

I think with the unemployment rate we're running into the Victorian England's Poverty Commission. They studied and studied, and came up with the conclusion that the poor were divided into the Deserving Poor, who were too proud to ask for or accept help, and the Undeserving Poor, who were wastrels and lazy and didn't deserve help.

If you don't have a job in America, you're the Undeserving Poor. The Poor are the enemy, after all.

dexter_morgan's picture


"This is what happens when you entrust academics with ZERO banking and business experience (those who have never made loans, managed portfolios, hired or fired people, made payroll, etc.) decide how the economy should operate."


The elites running all our lives can't be bothered with that sort of productive activity. Unfortunately, the scene in the movie "Back to School" where Dangerfield is in the economics class schooling the perfesser is all to much like reality. Guys like Krugman are experts at making widgets.

manich's picture

I was all in on that article until that quote. Then he lost me. Since when did "academics" find such favor with Wall Street banksters. Does the author really think it's the "academics" running the Fed?

AGuy's picture

"And yet alleged “adults” continue to believe this stuff."

FWIW: Not a soul I met believes the Media propaganda, not even the hard core Obamacans.


tony bonn's picture

"And yet alleged “adults” continue to believe this stuff..."

of course they do. they believe that spain sunk the maine, that ww1 was started by germany, that ww2 was started by germany, that china fell because of the communists, that vietnam was started by the communists, that castro came to power because of the communists, that oswald killed kennedy, that sirhan sirhan killed his brother, that james earl ray killed martin luther king jr, that "al qaeda" blew up the wtc, that a plane slammed into the pentagon, that saddam hussein had weapons of mass destruction (he got them from the us/uk), that john hinckly tried to kill reagan, that bush was never in the cia before 1976, barry soetoro is a us citizen, and on and on and on and on....

americans are nazis - they stupid evil idiots. so yes, they are going to continue to believe that stuff world without end.

August's picture

>>>...they believe that... that ww1 was started by germany, that ww2 was started by germany...

FWIW WW2 WAS started by Germany (with an able assist by the Japanese).

In 1914, and earlier, the German General Staff, particularly von Moltke, was eager for war; however, it took an able assist by the young Winston Churchill to create World War 1.

drstrangelove73's picture

Thumbs up!
You are correct,sir,or madam.
Someone who reads books too and not just the internet thingy.

Billy Shears's picture

What?!? Point out the obvious and be placed on the "watch list, " no way!

nabi's picture

"The Fed bet the republic that its misguided theories would play out."

No, when all is said and done, the Fed will have KNOWINGLY engineered the largest economic collapse in the history of the world.  Goodbye America, hello global government...

Vendetta's picture

Yep.  When the SHTF, they'll dust off and roll out their 60,000 page plan to rule the world via the IMF, World Bank, etcetra as everyone is freaking out that their 'stock portfolios' and currency value is decreasing exponentially before their eyes.  They'll say "here, we'll fix it for ya" ... just agree to this.

kchrisc's picture

Yup, and I,ll be dusting off something. Though there is not much dust on my well oiled "pitchforks."

An American, not US.

indio007's picture

I'm bullish on 18th century commodities. (except beaver pelts)

Xploregon's picture

<----@ indio007; "I'm bullish on 18th century commodities. (except beaver pelts)"

Whew! Me thinks I've made a friend for life!

TheMerryPrankster's picture

I'm mad about beaver. Go long beaver and you can't lose..

lakecity55's picture

Despite manipulation, I remain committed to PMs. I just wish they would stay on the truck, instead of falling off in traffic.

PMs Bit-Chez!

TheReplacement's picture

Don't worry.  When things go bad women will stop shaving and the pelts will come back.

Emergency Ward's picture

That's the reason to hoard razor blades.....good as Silver Eagles.....

nmewn's picture

"Sure you can make unemployment look better by not counting people, you can claim the economy is growing by ignoring inflation, you can argue that inflation is low because you don’t count food or energy, but the reality is that all of these arguments are grade “A” BS."

Yes...but there are salaries, pensions, benefits , bonuses & Hawaiian vacations for the elites to be had due to all this suffering!

Ya gotta look on the bright side ;-)

Aussiekiwi's picture

Your just living in the wrong country thats all, things are great down under.....of course if China goes belly up that might change rapidly, but in the meantime we are happy digging up the country and sending it to China.

As long as the Chinese want the western way of life all will be fine in my back yard....relatively speaking.


Winston of Oceania's picture

Really I was under the impression that real estate was not waht it once was?

Colonel Walter E Kurtz's picture

The problem with the soaring stock market is that is has hidden the underfunded pension time bomb in all levels of government (of course I believe this is intended). We could have been fixing this pension mess and getting it under control, instead all we have done is rack up 7 more trillion in debt and when the market goes down this time, the governement pensioners are going to be screaming.

I think I hear bailin's a comin'.


verum quod lies's picture

The whole notion that we now have an 'unemployment rate' that can be theoretically 0% yet have nobody employed would make even Orwell recoil in horror. Yet here we are and there it is.

Seeking Aphids's picture

Yes, I was disgusted to see the ue rate drop to 6.7% today....what a total farce....

Boris Alatovkrap's picture

AmeriKa economy is like Thai "waitress" that is pretend feminine grace, but inside is rotting open sore with nasty surprise.

lewy14's picture

You know Boris I like your character and I'm pretty thick skinned about the "Amerika" stuff (and it's not like we don't have a bunch of that coming)...

...but really, why pick on the Thai chicks with that tired trope? What have they ever done to you?

[Wait. Don't answer that.]

Papasmurf's picture

He explained about the open sore.  Asking for more details is impolite.

Boris Alatovkrap's picture

Is not problem of Thai woman, is problem with Thai "woman" that is not so woman.

Vendetta's picture

Nah... Orwell would just nod his head and say "I told you so".

Boris Alatovkrap's picture

Author of article is give exceeding nice grade to statist BS. Boris is give failing "D" or "F", cannot even show face after agency is found manipulating statistical basis. Hang head in shame.