XML FeedsBeauty in the eyes of the beholder economics
By P Alfonso on Jun 11, 2009 | In 1.5 The Economy | Send feedback »
That has become the trend followed by many in the media including reliable sources of financial information such as Bloomberg. We can actually find reliable and truthful source of information but it is buried deep past the headlines.
Follow up:
What we are facing here is an economy that can be describe as having been a World Beauty Queen. After years of being grossly overfed with junk by our politicians, we now find ourselves with an extremely obese and overweight monster. Common sense would tell you that in order to make it beautiful again one must take off all of that unnecessary fat weight. Unfortunately, our government has decided that they can fool our citizens and the world into believing that this fat and ugly monster can be beautiful again without making any changes. They have placed it on a float for it can no longer move. They have stuffed it into a girdle and a corset, put on it a wig and lots of makeup and cover up its feet for they can find no shoes that fit it. Then they have taken it and the float to our media sources to be parade it as the new American Beauty. Who are they trying to kid? Our politicians don’t seem to realize that while they are still at least for now living the good life and enjoying what is left of this once beauty, we the people are residing with this huge phenomenon they have created.
Here is an example of what the media feed us:
“U.S. Retail Sales Gain for First Time in Three Months (Always must continue reading beyond the headlines as there is where there may be some truth)
June 11 (Bloomberg) – Retail sales rose in May for the first time in three months as U.S. shoppers returned to showrooms seeking bargains from ailing carmakers, with little sign of an underlying rebound in spending… Sales also increased .05 percent excluding autos, led by gasoline as prices jumped last month…”
CNN Money.com:
“Fewer jobless seek first-time benefits
Initial claims sink by 24,000, beating estimates, hinting at the possibility that the worst of the job cuts may be over… There were 601,000 initial jobless claims filed in the week that ended June 6…”
601,000 initial jobless claims and the worst may be over. Are they out of touch?
Our economy is quickly approaching what has been described by some economist as the Bonds bubble collapse. We can already see the interest rates rising as The Treasury is running short of those who want invest on a debt that is consuming our nation. We have a budget deficit that in May was reported as 189.7 billion. The current administration has no plans to cut spending while revenues continue to shrink. So at best low estimates without getting worse we could conclude that if this were to be the trend for the next 12 months, we would have a deficit of (189.7x12) 2.267.4 trillions. They would even miss the now monstrous 1.84 trillion estimates. Beware that those trillions would have to come from lenders that are quickly vanishing. In addition, they continue talks of passing the health care bill that would cost trillions of unattainable dollars. What fantasy they are living in or what is that they are smoking we could say.
Although our nation is virtually bankrupted, our Federal Government will most likely print the 24 billion that California needs in order to prevent an imminent default. As Reuters reports, California is nearing a financial meltdown within 50 days at most. Other States will follow and the financial crisis will deepen. The Fed has no other option but to bailout the States for if they do not, it will unleash an unstoppable series of events that will bring our nation to what is actually the unavoidable in the longer term.
The government controlled media or better said yet, those who controlled the media and the government have most of our citizens living in wonderland. How true it is of someone who recently said, “The world knows that the American economy is collapsing; only Americans don’t know it”. I wonder why.
Have you wondered how much longer this is going to fly?
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