As has been noted frequently in the past, most of the business news posted by the mainstream media is a collection of economic fairy-tales which utterly pervert what is actually taking place, most particularly with respect to reporting on the Western bloc. Occasionally, however, we will get some sort of mild, pseudo-confession, which gives us just a glimpse of the economic carnage in these once-prosperous/once-affluent societies.
It is in these instances where it becomes possible to pierce the veil of propaganda, and corroborate past assessments that these nations are not only in an economic death-spiral, but they are very close to their final crash. In the case of the particular media piece cited (below); we gain this insight via several routes.
The U.S. economy hasn’t completely recovered from its last recession – what some have called the biggest since the Great Depression – but another one could be just around the corner, according to one economist.
The U.S. economy hasn’t completely recovered. Ah yes! The Never-Ending Recovery, where after 6 ½ years of supposed “recovering”, it still hasn’t recovered, even according to the admissions of the propaganda machine itself. In fact, there has been no U.S. recovery, at all. This conclusion has been documented in unequivocal terms, via economic data which could not be falsified.
Three million less jobs than when the “recovery” began. A steady, if not rapid, decline inenergy consumption (how can an economy “grow” without energy?). A relentless decline in real retail sales (once we strip-out inflation), in this consumer economy. A total collapse in the “velocity of money”.
Most importantly, it can be easily proven that the “GDP” numbers reported by Western governments (and, in particular, the U.S.) have been laughably inflated. We know these governments are lying about supposed “near-zero inflation”, while the costs of food and housing spiral higher at the most-rapid rate in our lifetime.
All GDP estimates must be “deflated” (by the full rate of inflation), in order to measure actual growth in an economy, and not merely the change in prices. Thus understating inflation automatically overstates GDP, and on a point-for-point basis. These governments radically underestimate inflation in their fraudulent “statistics”, ipso facto, they must also be radically overstating their own GDP.
We can now translate the initial paragraph of supposed honesty on the dire straits of the U.S. economy. It hasn’t even emerged from the collapse that began with the Crash of ’08 (and actually even sooner than that), in a massive trough which even the Corporate media can only liken to the Great Depression. And now a worsening of this trough, in this Greater Depression, is on the way.
In an opinion piece in the Financial Times, Monday, HSBC chief economist Stephen King said that historical trends show that recessions hit every eight or nine years and the last one in the U.S. ended six years ago. If history is any indication, the U.S. could be facing another recession in the next three years. What’s worse, he said, is that policy makers don’t appear to have the ammunition needed to fight another one.
As already noted; the last U.S. “recession” never ended, but that’s only the beginning of the revisionism from this economist. In fact; what our real history shows is that the average length of any growth cycle is roughly 3 ½ years. What do we call the periodsbetween those 3 ½-year intervals of growth? Obviously, they are recessions.
Again, translating the propaganda yields insight. A massive, further deterioration in this Greater Depression is imminent, and the bankers and their sycophant politicians don’t have “the ammunition” necessary to ward-off a further weakening in these crippled economies.
This is nothing more than restating what was said at the beginning of the Crash of ’08, after U.S. interest rates had already been taken to 0%. There were no more conventional “tools” for these monetary witch-doctors, so they simply began making-up stuff. It began with the money-printing “helicopter drop” about which B.S. Bernanke had mused, while still residing on the back-bench of the Federal Reserve.
King did note that the government and the Federal Reserve are not without options; however, none seemed very appealing.
He said that the Federal Reserve would have to restart its quantitative easing program. “That, however, might lead to yet another unsustainable asset price bubble and, thereafter, to an even bigger bust,” he said.
The government could introduce bigger budget deficits and create “Roosevelt-esque stimulus measures.”
In other words; they could do even more of what they have already proven (over 6+ years) doesn’t work. The only part of that intellectually/economically bankrupt thinking which is valid is the part about how doing more of what doesn’t work will lead to “an even bigger bust.”
King noted that there could be several triggers for the next recession; a collapse in “overvalued equity markets”…even a premature tightening of interest rates from the Federal Reserve.
What? Bubbles can burst? Who knew (other than Warren Buffett)? A “premature tightening” of interest rates by the Fed?
Back when the Federal Reserve began its “quantitative easing” insanity in 2008; B.S. Bernanke promised to normalize interest rates immediately, in early 2009. Since then; the Fed liars have been “promising” to raise interest rates every few months, for 6 ½ years. When (if?) the Federal Reserve ever begins to raise interest rates, it will be the most-belated action by a central bank in the history of these odious institutions.
In fact; B.S. Bernanke already confessed (just before stepping down as Fed Chairman) that the U.S. economy had become a Ponzi-scheme, which could no longer afford to pay normal/legitimate rates of interest on its massive debts (to say nothing of its $100’s of trillions in “unfunded liabilities”). This is why the Fed liars have reneged on their promise to normalize U.S. interest rates, for 6 ½ years (and counting); because as soon as these monetary witch-doctors begin to do so, ka-boom!
The phrase “backed into a corner” has never been more graphically illustrated, in economic terms. The economic crises which Western puppet-governments have refused to tackle – debt levels past the point-of-no-return; $trillions upon $trillions of financial malinvestment; massive, unprecedented, structural unemployment, and a gigantic financial crime syndicate of too-big-to-exist ‘banks’ – are now all bubbling to the surface again, despite the best efforts of our sycophant “leaders” to ignore them.
Worse still, with all these unresolved crises now (naturally) much worse from being ignored all these years; even the propaganda machine itself acknowledges that the criminal bankers, charlatan economists, and lackey politicians have no new ideas on what to do about these myriad crises, and no good ideas, at all. “Up the creek; without a paddle.”
Wade through all of the tap-dancing in this propaganda, and a clearer picture emerges. After years of our leaders insisting that they knew what they were doing, and insisting that these extremist monetary/economic policies were “working”; we now get the very slippery mea culpa that things are worse than ever, as a new (worse) crisis approaches.
The same political regimes which have now been exposed as frauds and failures have absolutely no idea about what to do when that happens, except more of what has already failed. While this pseudo-confession brings us no closer to resolving these crises, it does highlight a necessary first step.
Throw out all of the corrupt, incumbent regimes across the Rotten West. Equally, shun all of the Establishment “opposition” parties, which do little more than preach slight variations on the corrupt, and soon-to-collapse status quo. They represent nothing but guaranteed failure, and a Great Cataclysm, as all of the crises which the banksters have paid them to ignore now come to a head.
We don’t simply need “new governments”, i.e. some cynical, corrupt shuffle from Tweedle-Dee to Tweedle-Dum, where all we are doing is replacing one group of corrupt lackeys with another group of corrupt lackeys. We need new parties in government, at the very least parties which have not previously held “the reins of power” (and been corrupted by them).
The template is the Syriza Party of Greece. This independent government has flatly said “no” to more of the corrupt status quo. It has stated the obvious in saying that piling more debt onto bankrupt economies (which is all the ECB and EU ever do) is not “a bail-out”. The only way to “bail-out” a bankrupt nation – as a matter of simple arithmetic – is to reduce its debts.
Barring a legitimate, rational bail-out; Greece will be forced into the only option for any bankrupt debtor, when confronted by totally intransigent creditors: a declaration of bankruptcy, i.e. debt default. Indeed, some mass Debt Jubilee is now already mathematically inevitable, as most Western nations would be declared immediately bankrupt, based on any legitimate analysis of their finances.
The End is Near (the end is here?). Voters in the West face a very simple choice: “more of the same” (i.e. guaranteed failure, and guaranteed catastrophe) or “something different”.
Source: Sprott Money News