This page has been archived and commenting is disabled.

The Case Of The Missing Recovery

Tyler Durden's picture





 

Submitted by Dr. Paul Craig Roberts via Alt-Market.com,

Have you seen the economic recovery? I haven’t either. But it is bound to be around here somewhere, because the National Bureau of Economic Research spotted it in June 2009, four and one-half years ago.

It is a shy and reclusive recovery, like the “New Economy” and all those promised new economy jobs. I haven’t seen them either, but we know they are here, somewhere, because the economists said so.

Congress must have seen all those jobs before they went home for Christmas, because our representatives let extended unemployment benefits expire for 1.3 million unemployed Americans, who have not yet met up with those new economy jobs, or even with an old economy job for that matter.

By letting extended unemployment benefits expire, Congress figures that they saved 1.3 million Americans from becoming lifelong bums of the nanny state and living off the public purse. After all, who do those unemployed Americans think they are? A bank too big to fail? The military-security complex? Israel?

What the unemployed need to do is to form a lobby organization and make campaign contributions.

Just as economists don’t recognize facts that are inconsistent with corporate grants, career ambitions, and being on the speaking circuit, our representatives don’t recognize facts inconsistent with campaign contributions.

For example, our representative in the White House tells us that ObamaCare is a worthy program even though those who are supposed to be helped by it aren’t because of large deductibles, copays, and Medicaid estate recovery. The cost of this non-help is a doubling of the policy premiums on those insured Americans who did not need ObamaCare and the reclassification by employers of workers’ jobs from full-time to part-time in order to avoid medical insurance costs. All it took was campaign contributions from the insurance industry to turn a policy that hurts most and helps none into a worthy program. Worthy, of course, for the insurance companies.

Keep in mind that it is the people who could not afford medical insurance who have to come up with their part of the premium or pay a penalty. How do people who have no discretionary income come up with what are to them large sums of money? Are they going to eat less, drive less, dress less? If so, what happens to people employed in those industries when demand falls? Apparently, this was too big a thought for the White House occupant, his economists, and our representatives in Congress.

According to the official wage statistics for 2012, forty percent of the US work force earned less than $20,000, fifty-three percent earned less than $30,000, and seventy-three percent earned less than $50,000. The median wage or salary was $27,519. The amounts are in current dollars and they are compensation amounts subject to state and federal income taxes and to Social Security and Medicare payroll taxes. In other words, the take home pay is less.

To put these incomes into some perspective, the poverty threshold for a family of four in 2013 was $23,550.

In recent years, the only incomes that have been growing in real terms are those few at the top of the income distribution. Those at the top have benefited from “performance bonuses,” often acquired by laying off workers or by replacing US workers with cheaper foreign labor, and from the rise in stock and bond prices caused by the Federal Reserve’s policy of quantitative easing. Everyone else has experienced a decline in real income and wealth.

As only slightly more than one percent of Americans make more than $200,000 annually and less than four-tenths of one percent make $1,000,000 or more annually, there are not enough people with discretionary income to drive the economy with consumer spending. When real median family income and real per capita income ceased to grow and began falling, Federal Reserve chairman Alan Greenspan substituted a credit expansion to take the place of the missing growth in income. However, as consumers became loaded with debt, it was no longer possible to expand consumer spending with credit expansion.

World War II left the US economy the only undamaged industrial and manufacturing center. Prosperity ensued. But by the 1970s the Keynesian demand management economic policy had produced stagflation. Reagan’s supply-side policy was able to give the US economy another 20 years. But the collapse of the Soviet Union brought an era of jobs offshoring to large Asian economies that formerly were closed to Western capital. Once corporate executives realized that they could earn multi-million dollar performance bonuses by moving US jobs abroad and once they were threatened by Wall Street and shareholder advocates with takeovers if they did not, American capitalism began giving the US economy to other countries, mainly located in Asia. As high productivity manufacturing and professional service jobs (such as software engineering) moved offshore, US incomes stagnated and fell.

As real income growth stagnated, wives entered the work force to compensate. Children were educated by refinancing the home mortgage and using the equity in the family home or with student loans that they do not earn enough to repay. Since the December 2007 downturn, Americans have used up their coping mechanisms. Homes have been refinanced. IRAs raided. Savings drawn down. Grown children, now adults, are back home with parents. The falling labor force participation rate signals that the economy can no longer provide jobs for the workforce. In such a situation, economic recovery is impossible.

What the Treasury and Federal Reserve have done, with the complicity of the White House, Congress, economists, and the media, is to focus on rescuing a half dozen banks “too big to fail.” The consequence of focusing economic policy on saving the banks is rigged financial markets and massive stock and bond market bubbles. To protect the dollar’s exchange value from quantitative easing, the price of gold has been forced down in the paper futures market, with the consequence that physical gold is shipped to Asia where it is unavailable as a refuge for Americans faced with currency depreciation.

At a time when most Americans are running out of coping mechanisms, the US faces a possible financial collapse and a high rate of inflation from dollar depreciation as the Fed pours out newly created money in an effort to support the rigged financial markets.

It remains to be seen whether the chickens can be kept from coming home to roost for another year.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/10/2014 - 20:03 | Link to Comment Say What Again
Say What Again's picture

I spotted the recovery in another car while waiting to cross the bridge From NJ to the promised land

Fri, 01/10/2014 - 20:07 | Link to Comment fonestar
fonestar's picture

It's 2014.  Do you know where your recovery is?

Fri, 01/10/2014 - 20:22 | Link to Comment NoDebt
NoDebt's picture

Knock, knock!

Who's there?

Obama.

Fuck off.

Fri, 01/10/2014 - 20:39 | Link to Comment I am more equal...
I am more equal than others's picture

 

 

 

It remains to be seen whether the chickens can be kept from coming home to roost for another year.

 

The chickens have been consumed.  No more roasting, roosting or roosters. 

 

Fri, 01/10/2014 - 21:08 | Link to Comment mickeyman
mickeyman's picture

Actually I think they are happy if they keep them from roosting even for a few weeks.

Fri, 01/10/2014 - 21:28 | Link to Comment MisterMousePotato
MisterMousePotato's picture

If you like your recovery, ... .

Fri, 01/10/2014 - 21:30 | Link to Comment mickeyman
mickeyman's picture

Wait! I've got it! They just need to forgive all debt!

Fri, 01/10/2014 - 22:55 | Link to Comment MontgomeryScott
MontgomeryScott's picture

I KNOW there's a recovery.

The local A.M. radio stations are now playing (again) the advertisments promising 'Obama's' H.A.R.P. (no, not 'Bush's' H.A.R.P., Bernanke's and now Yellen's). (For those who don't know, it stands for 'Housing Affordable Refinancing Program').

YES, you can get ANOTHER loan to try to keep your house, ONCE AGAIN! (What do you mean, you can't afford your house payments NOW? Do you seriously expect US to loan you YET MORE FRN's to keep your home? Why the HELL aren't you living under a bridge, you unworthy, unemployed FOOL? McDonald's employment doesn't COUNT! GET THE FUCK OUT OF HERE! HA HA hahahaha...HA!)

Sat, 01/11/2014 - 00:35 | Link to Comment wee-weed up
wee-weed up's picture

 

 

Have you seen the economic recovery? I haven’t either.

Not according to Obama's sycophant MSM!

They trumpet it (lying to the max of course, for their Dear Leader) every chance they get!

Fri, 01/10/2014 - 20:08 | Link to Comment CheapBastard
CheapBastard's picture

Do they think the 5-6% postal rate hike will stimulate the economy?

Fri, 01/10/2014 - 20:09 | Link to Comment max2205
max2205's picture

Welfare to be changed to Economic Transition per Ms Jackson

Fri, 01/10/2014 - 20:12 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

When you have eliminated the unpossible, whatever remains, however improbable, must be the truth. There just is no recovery.

<It's elemental Dr. Watson.>

Fri, 01/10/2014 - 20:23 | Link to Comment NoDebt
NoDebt's picture

Must.... believe.... in..... recovery!

It does suck bigtime for most people.  Imagine unleashing a wave of global wage arbitrage right as technology started replacing low-skilled (and increasingly higher-skilled) labor in huge clumps and bunches.  Then throw "the most transparent government in history" (massive incompetence and corruption) on top and that cracking sound you hear is the camel's back breaking.

Like I said on here since forever:  Small number of rich, large number of poor and just enough middle class to service the rich.  Same as it has been in most societies throughout most of human history.  A giant reversion to the mean.

Fri, 01/10/2014 - 21:00 | Link to Comment Radical Marijuana
Radical Marijuana's picture

"A giant reversion to the mean" is way too optimistic, No Debt!

http://ourfiniteworld.com/2014/01/02/why-a-finite-world-is-a-problem/

Why a Finite World is a Problem

By Gail Tverberg, January 2, 2014.

... The fact that the world is finite has been omitted from virtually every model predicting the future. This means that economic models are virtually all wrong. The models generally predict that economic growth will continue indefinitely, but this is not really possible in a finite world. ... At this point, the problem of hitting limits in a finite world has morphed into primarily a financial problem. Governments are particularly affected. They find that they need to borrow increasing amounts of money to provide promised services to their citizens. Debt is a huge problem, both for governments and for individual citizens. Interest rates need to stay very low, in order for the current system to “stick together.” Governments are either unaware of the true nature of their problems, or are doing everything they can to hide the true situation from their constituents. Governments rely on economists for advice on what to do next. Economists’ models do a very poor job of representing today’s world, so they provide little useful guidance. ... It is surreal how close we can be to limits, without major media catching on to what the problem really is. ...

http://questioneverything.typepad.com/question_everything/2014/01/some-n...

Some New Year’s Observations

By George Mobus, January 1, 2014

... The truth is I’ve grown weary of writing the same thing over and over again. Last year saw further declines in the natural environment, increases in extreme weather events, increases in conflict in the MENA region, the Middle East and North Africa, (and others to boot), more rapid depletion of fossil fuels, greater disparity between the top 1% and the poor, and on and on. The political and governance systems continued their disintegration. Corporations continued to make profits by replacing workers with automation. And the bankers and brokers continued to amass fortunes by swindling the rest of the world, and with the assistance of governments as well. In spite of the accumulation of evidence of decline, almost nobody is paying attention ...

ET CETERA!

WE ARE NOT GOING TO REVERT TO THE MEAN OF THE HISTORY OF NEOLITHIC CIVILIZATION. THAT SOCIAL PYRAMID SYSTEM IS SURELY GOING TO TRY TO DO SO, BUT IT WILL FAIL SPECTACULARLY, AS ITS DELIBERATELY INDUCED GENOCIDAL WARS, AND DEMOCIDAL MARTIAL LAW, SPIN OUT OF CONTROL ...

Fri, 01/10/2014 - 21:51 | Link to Comment NoDebt
NoDebt's picture

Well, you MIGHT be right.  I'll stick with my call, though.  Thanks just the same.

Fri, 01/10/2014 - 22:26 | Link to Comment Seer
Seer's picture

Does that mean that you don't believe that the planet is finite?

Fri, 01/10/2014 - 23:43 | Link to Comment NoDebt
NoDebt's picture

Obviously, that is the ONLY possible conclusion that can be drawn from my comment.  The ONLY one.

Sat, 01/11/2014 - 17:50 | Link to Comment Radical Marijuana
Radical Marijuana's picture

I agree that there is no doubt that you will be right in the medium term, No Debt. As I said, there is no doubt that the established social pyramid systems are designed to do what what you say, and the people that staff those systems are working towards that kind of NeoFeudalism to return. Certainly, that IS the path we are on now, and your call is the most obvious extrapolation of current trends towards the most probable future, ALL OTHER THINGS BEING EQUAL, AND SIMILAR TO HOW THEY WERE IN THE PAST.

My point is that things are no longer equal to anything in previous human history, but rather what is happening now on a global scale has nothing similar to compare it to in the past (although some local regions went through some locally similar events, upon some occasions, like when climate change made their way of life there become "unpossible.")

I stick with my call regarding the longer term,

 & I repeat my basic bla, bla, blah about WHY:

The history of warfare for thousands of years depended upon being successful by being deceitful. The central issue was the death controls, as operated through murder systems. Relative success at operating those murder systems generally depended upon backing up deceits with destruction, and in that context, spies were the most important soldiers. Thousands of years of the selective forces of history within the crucible of conflicts selected for the development of the kinds of Neolithic Civilizations that were social pyramid systems, whereby relatively small minorities developed their ability to be dishonest, and back that up with violence, while the larger majorities developed to be controlled by the resulting ignorance and fear. That social pyramid system is the one that is running into the limits of the planet Earth. The history of warfare selected for the War Kings, who created the sovereign states, whose powers became controlled by the Fraud Kings. The overall history of the development of the ACTUAL human and industrial ecologies has been death controls operated through the maximum possible deceits, which backed up the development of debt controls operated through the maximum possible frauds.

OF COURSE: "Governments are ... doing everything they can to hide the true situation from their constituents." WHILE, THEREFORE, IT BECOMES MORE "surreal how close we can be to limits, without major media catching on to what the problem really is." We generally live in a Bizarro Mirror World, controlled by legalized lies, backed by legalized violence, in which everything appears proportionately backwards!

We are turning natural resources into garbage and pollution as fast as possible, while our fundamentally fraudulent financial accounting system figures that is quite good. We are rushing at an exponentially accelerating rate towards overshooting the possibly sustainable kinds of human and industrial ecologies, towards discovering that what we have been doing is "UNPOSSIBLE" to continue ... The "solution" that the social pyramid system has to that is to cull the majority of the human population. However, given that the weapons are trillions of times more powerful than ever before in human history, I believe that "solution" will spin out of control.

THERE IS NOT DOUBT THAT: "At this point, the problem of hitting limits in a finite world has morphed into primarily a financial problem." However, in order to be able to better resolve those problems we would have to start with the definition that MONEY IS MEASUREMENT BACKED BY MURDER. Obviously, all of mainstream "economics," as well as almost all of its controlled opposition forms of "economics," are almost totally dominated by the biggest bullies' bullshit world views. They operate through evil deliberate ignorance towards ecological realities. THOSE ENVIRONMENTAL REALITIES ARE WHAT MAY MAKE SOCIAL PYRAMID SYSTEMS IN THE FUTURE SELF-DESTRUCT, AND BE IMPOSSIBLE TO MAINTAIN, NO MATTER HOW MUCH THEY TRY TO SURVIVE BY MAKING THEMSELVES HAVE AN EVEN STEEPER SHAPE.

Anyway, No Debt, you see I agree with your prediction as what is happening, and what those doing that plan on doing ... I just do NOT believe they will actually be able to do that, in the longer term, because they operate way too much on the basis of evil deliberate ignorance, which they can do within the human world, by backing up their lies with violence, BUT, that does not change the environmental realities which they are able to persuade most people to deliberately ignore, because most people also want to deliberately ignore those real limits. IF we did not deliberately ignore those limits, then we would have to radically change, but still both the rulers and the ruled have ways to deliberately ignore what they want to deliberately ignore, and thus, they are enabled to continue to do that, for as long as possible, until that becomes "unpossible" to continue, at which point civilization will be going through psychotic breakdowns, which will careen out of control ...

Somehow we continue to believe we can still engage in old-fashioned fights for resources, even while those conflicts get more and more intensified, despite the FACT that the weapons are trillions of times more powerful. Basically, the current social pyramid systems ARE able to maintain attitudes of evil deliberate ignorance towards the consequences of fighting over dwindling natural resources with weapons of mass destruction. Since we have never been in that predicament before, it is "unpossible" to predict what will happen. However, it is quite possible that civilization will madly destroy itself, rather than do what it is apparently planning on, and preparing to do, which is what you are predicting shall most probably happen, No Debt.

Fri, 01/10/2014 - 23:08 | Link to Comment MontgomeryScott
MontgomeryScott's picture

"By George Mobus, January 1, 2014"

Say, what was that dude's name in that movie 'The Matrix', anyway?

MOBIUS or something...oops, it was 'Morphius'...

http://www.youtube.com/watch?v=arcJksDgCOU

In spite of the accumulation of evidence of decline, almost nobody is paying attention ...

Fri, 01/10/2014 - 23:02 | Link to Comment MontgomeryScott
MontgomeryScott's picture

@Cognitive Dissonance:

My doctor told me that when I eliminated the INPISSABLE, I would see a few hard stones in the bottom of the bowl. It hurt like HELL, but I did it, and NOW I can flush the remains down the drain (much like the so-called 'recovery'). No drugs...

Figured I'd add to the 'misspelling' error of yours...'unpossible', 'inpossible', unpissable', 'inpissable', and WHATEVER...

Letter for the day: M.

Fri, 01/10/2014 - 23:46 | Link to Comment NoDebt
NoDebt's picture

'Unpossible' is a well-known ZH invent-a-word that dates back a long time on this site.  It's not an error or misspelling on his part.

Here's your crow.  Bon appetit.

Sat, 01/11/2014 - 05:22 | Link to Comment Mr.Bigfoot
Mr.Bigfoot's picture

"Unpossible"

Unfortunately not a ZH invented word.   This was coined by the famous Ralph Wiggam on the Simpsons with his remark, "Me fail English?  That's unpossible"

Fri, 01/10/2014 - 20:11 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

No economic recovery?

It's everywhere you look and find the top 20%.    The top 20% are doing really well.    That's 60 MILLION people living better than ever.   

And when has the bottom 80% ever mattered in the US. 

Survival of the fittest.   Isn't that the society that we wanted?  

Fri, 01/10/2014 - 20:45 | Link to Comment SWRichmond
SWRichmond's picture

Nowhere near 20%.

Fri, 01/10/2014 - 21:05 | Link to Comment Oldwood
Oldwood's picture

As a small business owner, in 2008 I was at the very bottom if not quite in the top 1%. Today I'm lucky if I'm in the top 20%. I'm obviously not part of his smart and savy crowd, but I think it is largely the top .1% that's really winning here.

Fri, 01/10/2014 - 22:31 | Link to Comment Seer
Seer's picture

Based on 2000 world wealth report the top 10% had on average $61,000 worth of assets; to be in the top 1% you had to have $500,000 and up (this was noted to be something on the order of 37 million people worldwide).

I'm not sure that one could really be said to be winning if it's in a highly flawed game...  But, on the notion of winning and losing:

Gloria Clemente from White Men Can't Jump:

Sometimes when you win, you really lose, and sometimes when you lose, you really win, and sometimes when you win or lose, you actually tie, and sometimes when you tie, you actually win or lose. Winning or losing is all one organic mechanism, from which one extracts what one needs.

Fri, 01/10/2014 - 20:12 | Link to Comment syntaxterror
syntaxterror's picture

Wall Street and D.C. are booming. Muchas gracias money changers!

Fri, 01/10/2014 - 20:15 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

As is the bucolic college town I live in,  stuffed full of student loan debt.

Anybody looting Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState.  

The top 20% - the management class - are doing very well.   

What the heck do people want, the losers to get more loot?    It's a survival of the fittest society and the fittest are REALLY surviving.

Fri, 01/10/2014 - 20:19 | Link to Comment denverdolomte
denverdolomte's picture

So if I came into your house and stole everything out from under you without leaving a trace or possiblity of being caught you would be okay with that? I mean in all fairness I outsmarted your ability to keep what is yours, in an essence survival of the fittest. 

I understand your point but feel its majorly misconstrued, unless you forgot the /sarc tag. 

Fri, 01/10/2014 - 20:33 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Isn't life in America about the smart-n-savvy people screwing the dumbasses anyway possible?

Does it really matter if it's predatory lending (notice the name) or outright stealing.

The (glorious) financial INSTITUTION I work for has offices in South Dakota.   Know why?  Because the laws allow then to fuck people more.

When did people put at stop to that.  Or was that just "good bidness".    It could have been stopped anytime over the last 40 or so years but it wasn't (just bidness, ya know, ha ha ha).

This is nation of scam artists and assholes and the last 60+ years has resulting in them winning.  And lets have a show of hands of how many of us cheered them on; because THEY were the most fit winners of society?

Well, they won.   Deal with the results. 

Fri, 01/10/2014 - 20:42 | Link to Comment JLee2027
JLee2027's picture

Interesting handle you have considering you hate Americans.

Fri, 01/10/2014 - 20:47 | Link to Comment denverdolomte
denverdolomte's picture

I'm guessing that we differ greatly in chronological ages. I unfortunately am new to the economic world of understanding this farce, as of 2007 at the age of 23, I started questions why things were so out of control and I have learned a lot over those years. 

So no I never have supported the "fittest". Let's see a show of hands here how many people got free rides through life, handed executive positions with the TBTF corps, and access to all they could ever desire. I am confused here if your are blaming people that didn't have the allocated resources to understand this knowledge before the dawn of the internet and thus labeling the serfs as those marked to deal with prolific despair. Or you are part of the the issue by remaining part of an institution that is willingly fucking people hence you are complaining about something that you have caused? 

Fri, 01/10/2014 - 22:38 | Link to Comment Seer
Seer's picture

"Well, they won."

No.  You and THEY might believe so, but I don't.  The System is going to crash, which means that it's a LOSER.  Being a winner of a loser system does not mean that you "win."  And, if one looks at real survivors you'd see that there is really nothing sustainable about these "winners" at all- if/when things collapse they'll be more susceptable to failure than those who are less connected to the system.

Fri, 01/10/2014 - 21:14 | Link to Comment Anusocracy
Anusocracy's picture

" It's a survival of the fittest society and the fittest are REALLY surviving."

Wrong on two counts.

It's the survival of a society that fits the programming of the general population. It is the fittest society for the animal world.

The fittest that are REALLY surviving are fit only for the animal world.

Fri, 01/10/2014 - 20:13 | Link to Comment denverdolomte
denverdolomte's picture

Like hangover recoveries? 

Think this article made one good point for the un- / under-employed to form a logical coalition. I filed in my state for "un-employment" and was over payed somehow, almost a year now I have been fighting them for this cause. Even hired myself a lawyer who I quote "Since 2012 I have seen so many of these cases that the best way I can describe the Department of Labor is that of 3rd world corruption or a ponzi scheme." These fucks are fleecing people who think they are living on the system and don't even know they are being held in debt to that department. So I agree that it's beyond time for people to truly start banning together and instead of contributions donate retribution.

Fri, 01/10/2014 - 20:15 | Link to Comment stant
stant's picture

recovery, does that fall under offensive comments per zh guide lines?

Fri, 01/10/2014 - 20:19 | Link to Comment denverdolomte
denverdolomte's picture

HAHA +10. Nice.

Fri, 01/10/2014 - 20:16 | Link to Comment MethodMan
MethodMan's picture

"What the unemployed need to do is to form a lobby organization and make campaign contributions"

Riiiiiiiiiiiiiiggggggggggggt. Can they go to the Fed window first? Or get some "loaned reserves?" After all, no printed dollar would ever end up in the pockets of a politician....

Fri, 01/10/2014 - 22:43 | Link to Comment Seer
Seer's picture

Sigh, it's the one thing I don't tend to agree with PCR on.  He seems to hold out some remote bit of hope that politics can actually do something.  Once upon a time things could happen that way, but now that we're less capable of changing because things are so tightly tuned due to diminishing resources it not only isn't possible it's not even a good idea to try (taking over the System doesn't fix it's fundamental flaws- it's un-fixable and really must end/die in order for a truer, more sustainabe, organic solution(s) to form).

Sat, 01/11/2014 - 12:48 | Link to Comment PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

amen bro.

The big lie is that politics that which has brought us here is somehow the pathway back to freedom, people are starting to realize that politics is a one way street.

Fri, 01/10/2014 - 23:19 | Link to Comment MontgomeryScott
MontgomeryScott's picture

@MethodMan:

RIIIIIIGHT!

http://www.youtube.com/watch?v=HQfzwFloVqA

http://www.youtube.com/watch?v=xWfJu-Sd8Zo

What the unemployed could do, you see, is to pool all their leftover monies, and form a community organization, like Barry soetoro used to head over in Cook County, Illinois (before being selected as a State Senator). See, and THEN, they could go to Chase, Wachovia, HSBC, or the FED ITSELF, and say, like, 'Look, man, we want to start a lobby for the unemployed'.

Yeah, THAT COULD work...

(Did you miss the 'sarc' tag?)

 

Fri, 01/10/2014 - 20:23 | Link to Comment JustObserving
JustObserving's picture

Dr Paul Craig Roberts is one of a very few Americans who will speak truth to those in power whether it be on economics or  9/11 or the Syrian situation or gold.

The whole illusion of recovery is based on false inflation and unemployment numbers.  Correct the official inflation rate by 3 to 5% and there has been negative growth or recession since 2008 despite the Fed printing over $3 trillion.  And John Williams of Shadowstats say unemployment is 23% instead of the official 6.7%.  The recovery is an illusion promulgated by Wall Street and the pliant, controlled, corrupt media.

http://www.shadowstats.com/alternate_data/inflation-charts

http://www.shadowstats.com/alternate_data/unemployment-charts

 

 

 

Fri, 01/10/2014 - 21:15 | Link to Comment Deer Hunter
Deer Hunter's picture

Recovery is in Texas, all the work you need.

Fri, 01/10/2014 - 21:30 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

Got water for another 90 million people?

y'all can't even keep the cattle alive in Texas no more. thinkin you might be all hat cowboy.

Fri, 01/10/2014 - 22:46 | Link to Comment Seer
Seer's picture

More folks flocking to Texas from California!  Imagine the tensions as it becomes apparent that Texans and Californians hate each other!  Fun times ahead... (when the wells start going dry)

Fri, 01/10/2014 - 22:45 | Link to Comment Seer
Seer's picture

Why do people insist on speaking truth to power when power knows what the fucking truth is?  FUCKING DO TRUTH! (thus helping to squeeze out all the TALK, which is what POWER primarily relies on happening in order to maintain their control)

Fri, 01/10/2014 - 20:23 | Link to Comment ptoemmes
ptoemmes's picture

Rumored to have been seen on Wall Street in NYC, The Hamptons, and at various places inside the Washington DC beltway.  Could have just been a Sasquatch, Yetti, or Skunk Ape.

Fri, 01/10/2014 - 20:23 | Link to Comment nmewn
nmewn's picture

Clearly what's needed here are some Promise Zones...and extended unemployment benefits!...and and and...immigration reform to pick up the job slack of all those on unemployment!

Every dollar in unemployment checks puts a buck fiddy back into the economy, do the math people!

FORWARD!

Fri, 01/10/2014 - 21:28 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

AmeriKa is a Promise ZONE!!!

Heads full of promises and pockets full of empty

watching big screens full of illusion, beleiving them real - looking out the window, beleiving it fake.

Looking in the mirror and seeing a pharmaceutical reflection, enhanced, subdued, embalmed and impotent.

TV World says recovery, green shoots, broken windows, foreclosed homes, jobless say depression.

90+ million out of the workforce

42+ million on foodstamps

20% of all children living in poverty

if this is the face of recovery, then recovery doesn't mean what I was taught it does.

Green shoots died when Bernanke's depression ate America a dollar at a time.

Fri, 01/10/2014 - 23:24 | Link to Comment MontgomeryScott
MontgomeryScott's picture

@nmewn,

I hereby give you: The Promise Zone!

1) I will not come in your mouth.

2) I will not get you pregnant.

3) The check is in the mail.

http://www.youtube.com/watch?v=-b5aW08ivHU

(Obligatory 'Twilight Zone' intro music, posted)

Fri, 01/10/2014 - 20:32 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

I propose more corporate welfare and more wars...........and more printing.....

yes....yes........and she said yes and I yes........yes.........uhhhh

yes

Fri, 01/10/2014 - 23:25 | Link to Comment MontgomeryScott
MontgomeryScott's picture

Damn!

Teleprompter broke again...

Fri, 01/10/2014 - 20:40 | Link to Comment Atomizer
Atomizer's picture

The Healthcare industry was to become the next dot com employment cycle

The Trap. We Will Force You to Be Free

Just another angle to see future central planning interests.

Fri, 01/10/2014 - 20:44 | Link to Comment JLee2027
JLee2027's picture

Hyperinflation still on schedule after a panic dollar sell-off per John Williams. Sometime this year, 90% chance.

Fri, 01/10/2014 - 20:50 | Link to Comment denverdolomte
denverdolomte's picture

I'm going with early spring....once the holiday high wears off and chain stores start closing. 

Fri, 01/10/2014 - 21:01 | Link to Comment Greenskeeper_Carl
Greenskeeper_Carl's picture

I'm going with neither of those. Next year everyone will be saying the exact same thing. I'm not saying it isn't going to happen, I just think its going to be a long, drawn out decay, rather than rapid collapse. You get the frog to stay in the pot by slowly heating the water, not throwing him in there at a full boil. And we are most definitely boiling frogs.

Fri, 01/10/2014 - 21:04 | Link to Comment denverdolomte
denverdolomte's picture

Touche haha. 

Sat, 01/11/2014 - 06:23 | Link to Comment Bazza McKenzie
Bazza McKenzie's picture

Actually frogs are smarter than that.  It was just some social sciences academic that came up with that saying.

Fri, 01/10/2014 - 22:53 | Link to Comment Seer
Seer's picture

Not that I don't believe that it won't happen one day, but to predict it within a year?

Other countries' currencies have yet to give way more. That's the Fed's game, outlast the others. And given that the USD is the world's reserve currency it's got an inside hand on staying afloat longer. This doesn't mean that the USD doesn't have gaping holes, it does; what it means is that it's being held above water by others sinking below it.

I'm kind of of the mind that people will continue to "quietly" disappear out of the System to the point that the System is just some background noise, after which it totally dumps (and most note it and turn around and continue on with their new lives).

Fri, 01/10/2014 - 21:11 | Link to Comment Greenskeeper_Carl
Greenskeeper_Carl's picture

It's not hard to understand why many choose to ride those unemployment benefits for 99 weeks, especially if a spouse or rooms the has a job. Mostly the jobs available pay less than 10 dollars an hour, since there is such in abundance of cheap labor, about to be made even larger if they decide to grant millions of illegals citizenship. Also, thanks to obamacare, rather than hire one person to work 40 hours a week, companies will hire 2 people to work 20 instead. That size paycheck isn't much or even anymore than they get paid by the govt to sit around and do nothing. There will be no recovery in anything resembling our present circumstances, so this problem will continue to grow and compound on itself. Plus, this lets them sell the whole dropping unemployment number to the sheep. As long as there is a "presstitute" media, as PCR likes to say, pushing this to the masses at every turn, they can keep the illusion alive for longer than you would imagine possible.

Fri, 01/10/2014 - 21:23 | Link to Comment NihilistZero
NihilistZero's picture

"Reagan’s supply-side policy was able to give the US economy another 20 years."

Should read:

Debt based inflationary voodoo policy gave the top 20% of US citizens another 20 years of artificial economic growth.

Fri, 01/10/2014 - 23:38 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Not sure the 20% figure is correct. 

Engineering salaries, with which I am very familiar with, have essentially been stagnant since the 80s.  STEM salaries make up lots of the top 20%....

Keep the focus on the 1%.  Don't fall prey to their goal of warfare between the peons

Fri, 01/10/2014 - 21:29 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Fed windows for everyone.

Smiles, everyone, smiles, this is fantasy island

Fri, 01/10/2014 - 23:32 | Link to Comment I Write Code
I Write Code's picture

Y'know, I just don't know, ... most all of the college-educated, white male boomers I know have managed to keep head above water.  The malls were not empty at Xmas even if listed sales were down.  The roads are full of expensive cars and people seem to have the disposable income to spend on all kinds of junk.  From some macroeconomic viewpoint we seem to be cruising right along, even if just under the surface we individually and statistically see declining wages and an especially tough time for younger people, new college grads.  My own real fear is that even this facade is being propped up on borrowed printed/stolen money and it cannot last, and it is the fundamentals that we were all taught to look at, that are broken.  The national government is full of venal clowns to a degree unprecedented in an American history in which politicians have always been scum (as I suppose is 99.44% true in all places and times).  If there's one element that scares me most of all it's the decrepit state of the MSM which no longer makes any attempt to present objective information - OK you Columbia School of Journalism types maybe it never really was all that pure, but again, today's rot is unprecedented.  The press plays a necessary role and it's not playing it anymore, and that's bad enough in itself, and worse for what it indicates that is broken beneath the surface.  I mean seriously folks, when one of the best news sources on the planet is ZH, we must be very close to the end of civilization!

Sat, 01/11/2014 - 01:16 | Link to Comment tony bonn
tony bonn's picture

"It remains to be seen whether the chickens can be kept from coming home to roost for another year..."

2014 is the year of reckoning...it will be time to come to jesus bawling and a squalling...and i hope to see some banksters and politicians in orange jumpsuits this year...bail-ins are coming to a bank near year....deutsche bank is going down and the ripple effects will make fukushima look like a bad microwave session with popcorn.

Sat, 01/11/2014 - 03:42 | Link to Comment ACasey
ACasey's picture

People today are so broke figuring out their economics is simple:  reach into your purse, pocket, or wallet and count it out.  There.  Now you know your economics. 

Forget about counting money in the bank or the market.  Once you made that deposit or stock purchase, it belongs to the bank and the market.  Banks are getting scary.  Keep your eyes on Europe.  Repatriating customer deposits is becoming the rule of the day and currently a 10%-20% take of depositors money to "bail-in" the banks is being negotiated in European Union countries.  Its only a matter of time before the US follows suit.

Pensions are promises.  If you are counting on the pensions, well;  bummer.  Check out Detroit.

JP Morgan Chase already sent letters out to customers limiting transfers and withdrawals.  Recently, thousands of customers discovered zero [0] balances in their accounts.  The amounts were restored with a JP Morgan computer glitch explanation. 

All software gets beta tested.  Banks are getting ready for the takedown.  Your economics are what you have possession of so check your wallets and purses, slide a few rings on your fingers, stash what you can, try digital currencies, and strap in because we are locked into an E-ticket ride.

Sat, 01/11/2014 - 09:30 | Link to Comment d edwards
d edwards's picture

Lobbyists for the unemployed-interesting idea. I've even heard of unionizing them-what, the Nat'l. Federation of Non-Workers?

 

Surely out of 92 million unemployed there could be at least a million who could make the trip to DC and "occupy" the place. Around the Capitol building, WH, The Mall in protest and tie the place up in knots.

Sat, 01/11/2014 - 10:51 | Link to Comment Sufiy
Sufiy's picture


Dr. Paul Craig Roberts: If the Currency Collapses & You Try to Flee Into Gold, There Won't Be Any


Dr Paul Craigs Roberts talks about all markets being manipulated and presents the big picture of the Gold market and ongoing QE by the FED. Gold price action became the threat to the FED's policies and Gold was smashed down to preserve the status quo and save US Dollar. Markets can not be manipulated forever and now we have the situation when bullion goes to the East and to China particularly with the very dear geopolitical consequences. There is no recovery in U.S. economy and there is no Jobs creation - we would like to mention that this interview was recorded before yesterday disaster with Jobs numbers of only 74k being created and collapse in labour participation numbers. http://sufiy.blogspot.co.uk/2014/01/dr-paul-craig-roberts-if-currency.ht...

Sat, 01/11/2014 - 11:50 | Link to Comment Last of the Mid...
Last of the Middle Class's picture

There was a magazine i used to get back in the 70's that is still published today. It used to publish it's "500"wealthiest peeps. I read a few copies and immediately droped it because it's mantra seemed to be big companies buy little companies. People start little companies and this goes on forever totally ignoring the irrefutable fact of a "finite"economy. There is a finite amount of dollars transacted at any given time within an economy. You cannot change that. You can print more dollars but the value of each is devalued every time you do that. Even if you do your best to circulate those dollars solely amongst the TBTF and the 1%. Massive corporate kleptocracies will never let this change as long as they have access to politicians who will fellate them any way possible for their $$. In short, it's a corrupt system and it will not change willingly.. EVER! so get used to it and plan accordingly. I literally spit coffee on my keyboard the first time I heard "Promise Zone". Another perfect way to channel money through a malignant government program to those it is specifically designed to help. That is those who will buy the Libtard left B.S. and believe in it for another period of time. Insanity is rampant and just for the record I saw Elvis partying his ass of with the economic recovery the other night in a gay bar.  

Sat, 01/11/2014 - 12:13 | Link to Comment OceanX
OceanX's picture

I think I'll watch "Bladerunner" again...

Do NOT follow this link or you will be banned from the site!