The spiral into insolvency continues, despite government’s efforts to make you believe that there is a recovery. At this point, this country is too far gone. It is mathematically impossible to service the debt. Furthermore, the debt burden makes it impossible to regenerate reasonable economic growth. The end has been determined, only the timing remains to be known.
For politicians (and it does not matter which party), the only remaining strategy is to use bailing wire to hold matters together from one election to the next. Unfortunately, the supply of bailing wire is now scarce. Will we last until November 2012 before a financial collapse or some other event uncovers the fraud? That is hard to tell, but the postponement of reality is all that drives the political approach to economic policy.
The employment report this past week showed a substantial rise in new hires, although it was not enough to reflect a true recovery. The mainstream media, desperate for some good news in order to support their candidate Barack Obama, trumpeted the results as an inflection point in the economic “recovery.” There is no economic recovery! Nor will there be one until an economic collapse of historical magnitude occurs.
The increased hiring is welcome, but do not believe it is indicative of a turnaround. The drop in the unemployment rate has been highlighted “the lowest in three years.” Few choose to point out the games played in the measurement of this rate or bother to cite the incongruity of how another 1.2 million workers left the workforce last month. (Here is Rick Santelli’s take.)
The stock market, no longer an investment vehicle but a large roulette wheel, took off roaring in anticipation of “happy times are here again.” Do not be fooled by this burst of euphoria. Nothing has changed other than the pulse beats of the gamblers.
Lets try to put matters into a bit more perspective. Here are three excerpts from