News Flash: Economy is Really Lousy

When the Ruling Class starts to admit it, you know we’re in a world of hurt – from the Washington Times:

Vice Chair of the Federal Reserve Board of Governors Sarah Bloom Raskin said today that unemployment numbers present too positive a view of the economy, adding that the Federal Reserve might need to take more action to stabilize the economy.

Nonetheless, as many families know,” said Raskin, an appointee of President Obama’s, “the headline unemployment numbers don’t fully capture the weakness in labor market conditions.”…

Later, though, she returned to Ruling Class type and asserted that she and the rest of the people running our economy are just wise, old owls and are carefully doing what needs to be done.  And, hey, if we hadn’t done all that money printing, it would have been worse!  She failed to explain how all the wisdom deployed so far has led to such a lousy economy.  You’d think that with a multi-trillion dollar price tag, we’d get more than a “it could have been worse” statement.

These people don’t really know what to do because they are working from a false theory – a theory that has it being consumption which makes the economy go ’round, rather than production.  It is the wealth we make which makes us rich, not the money we spend…especially not borrowed or printed money.  Until we start making money again (creating wealth via making, mining and growing things) we simply will not improve.  People like Ms. Raskin, I suspect, haven’t the foggiest notion of this.  How did the Chinese build up a couple trillion dollars of our money in their vaults?  Not by spending, but by making, mining and growing things.  Amazing that more people can’t see this (though being Ruling Class types, themselves, the Chinese leadership has also embarked upon a bonanza of printing and borrowing since 2008…and that will tip China in to recession in the by and by…even with their own example right in front of them, the Chinese leadership couldn’t see it).

More Rumors the Fed Will Print

From Zero Hedge:

For now it was just Jan Hatzius calling for QE3 now if not sooner. With the addition of JPM to the list of banks now implicitly expecting (read demanding) QE3, it is now quite clear how Wall Street feels – after all someone has to pay those Wall Street bonuses – it sure won’t come from M&A activity, underwriting of Chinese IPO frauds, or trading volume. Here is the key sentence from a just released note by JPM’s Michael Feroli: “We believe the minutes lend themselves to our view that there is a somewhat better-than-even chance the Fed takes action at the next meeting to increase the average maturity of assets on their balance sheet.” Keep an eye on the market tomorrow for confirmation: a third day of the same low volume meltup we have seen this week should make the open QE3 question into case closed…

For those unfamiliar, a “low volume meltup” is when the stock market rises high for no reason (or, indeed, even rises when the news clearly indicates a down day) on low trading volume.  For the most part of late, if you see the market dropping it is a much higher volume trading day than the days you see it rise.  All part of the fake, ponzeconomy we currently have.

Anyways, getting back to the Fed printing money.  I’m still figuring it won’t happen.  I understand that the only way we may avoid an “official” recession (ie, where the government numbers clearly show it) is by printing up money…but even that isn’t a sure thing, and any “good” you get out of it will have to be counterbalanced by the knowledge that more printing will lead to more inflation for basic necessities (food and fuel).  To me, there is far more downside political and economic risk in printing than in not printing.  But rumors of “QE3” keep flying, and now there this statement from someone at JP Morgan saying it may well happen..and if anyone is juiced in to Fed decision making, it would be a firm like JP Morgan.

I hope they don’t do it as it would be, long term (and possibly short term) a catastrophe for the economy.  But the Ruling Class is desperate – something has to be done to get unemployment down below 8% by August of next year or Obama and his Ruling Class liberals are doomed.  Dying Ruling Classes do tend to cast around for desperate expedients to stay alive…even rather stupid expedients.  And, so, even though I still think they won’t print, I have to put money printing in the realm of distinct possibility…we’ll see how it comes out.

 

Obamunism! What Has Happened to the Dollar?

Read the chart, and weep:

 

If you look back to 2009, you can see that the dollar was worth about 1.15 Swiss Francs…now it is worth about 0.84 Swiss Francs.  This is what happens to your money when your government goes massively in to debt and prints up bags of money…the value of the money goes down.

This really needs to be driven home – the Obama/Bernanke economic polices have amounted to the stealing of our money.  Those dollars you carefully saved in 2009 for a rainy day?  They are now worth less than they were in 2009…think of it like putting a dollar in the piggy bank on January 1st, 2009 and then checking piggy today and finding about 90 cents in there.  What happened to your dime?  Well it, and a dime out of all your dollars, was taken way…and given to banksters and well-connected, Democrat special interests.  And this didn’t happen just to your dollars, but to everyone’s.  This is the most massive heist in human history…and it was carried out right under our noses by men who claimed they were doing it for our own good.

This is why you’re paying more for a gallon of gas and for a loaf of bread – it isn’t that gasoline and bread have actually gone up in price, but that the value of your dollar has gone down…and gown down at a time when almost all of us are earning either just the same number of dollars as before, or even less for those who lost their jobs and/or were forced to take a pay cut.  Remember it, remember it, remember it:  in order that Bernanke’s bankster buddies and Obama’s union cash cows could be protected you had your money stolen from you.

It is, indeed, time for a change – the Ruling Class is robbing us blind, selling us out to foreigners and working not just to deprive us of our rights, but of our own country.  Fight hard and never give up – remember what sort of people we’re dealing with and use it to steel your heart to ever greater efforts in 2012.  We must get rid of these people if we want to save our nation.