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Thread: Collapse coming...not recovery
03-16-2012, 07:25 AM #1
Collapse coming...not recovery
This is the scenario that many of us are preparing for, at least an economic collapse and the problems that it will bring is my primary reason for prepping....
Collapse Coming–Not Recovery
12 March 2012 78 Comments
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."If anybody can draw on the power, where do we put the meter?" - JP Morgan before pulling Tesla funding
03-16-2012, 08:15 AM #2
You should try optimism for a while. You will sleep better and your food will not taste so bland.
03-16-2012, 08:35 AM #3
It is easier to perceive error than to find truth, for the former lies on the surface and is easily seen, while the latter lies in the depth, where few are willing to search for it."If anybody can draw on the power, where do we put the meter?" - JP Morgan before pulling Tesla funding
03-16-2012, 08:47 AM #4Professional Member*
- Join Date
- May 2011
- Ripley, WV
Coolwhip, you and the person who wrote that article are wrong! How do I know this? Simple, because we all know our government wouldn't LIE to us.
03-16-2012, 08:51 AM #5
Just thought I would post this reality because in the very near future there will be many lies told and manipulation abound via the Obama conduit and his quest for re election."If anybody can draw on the power, where do we put the meter?" - JP Morgan before pulling Tesla funding
03-16-2012, 09:00 AM #6Professional Member*
- Join Date
- May 2011
- Ripley, WV
Actually I was giving you a hard time cool, It's a good article and makes what appear to be valid points, and I've heard basically the same stuff from many sources.
03-16-2012, 09:23 AM #7
03-16-2012, 10:21 AM #8
Keep stocking up - it helps the economy.
03-16-2012, 10:59 AM #9
It happened in 2008. Where have you been?
03-16-2012, 06:36 PM #10
Who ever thought this mess would be over quickly. Two years ago I thought it would take ten. But that was before I fully understood Europe.Never argue with a fool, onlookers may not be able to tell the difference. Mark Twain
03-16-2012, 07:42 PM #11
Pity that all that stuff you stockpiled in '99 is past its use by date now...
Mistakes are a part of being human. Appreciate your mistakes for what they are: precious life lessons that can only be learned the hard way. Unless it's a fatal mistake, which, at least, others can learn from. Al Franken, "Oh, the Things I Know", 2002
03-16-2012, 10:36 PM #12Professional Member
- Join Date
- Aug 2006
Germany the powerhouse of industrial might is in a 20% contraction.
In 2011 the average job creation was 208K for the year,that would mean it would take 12 years to come back to 2006 standards.
Commercial construction is dead and housing well just forget about seeing recovery until 2016.
Man does not live by car alone.FEN
03-16-2012, 10:55 PM #13I draw all my schematics in crayon now. If they cannot always be correct, they can at least be colorful.
Service calls submitted after 3PM will be posted the next business day.
I give free estimates [Wild Ass Guesses] over the phone.
I am not in business to make money from other people so that I can afford to work for you for free.
If the fall is over, mmmm let's say, 6 feet or so,.. I do not 'bounce' very well.