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Showing posts with label economic depression. Show all posts
Showing posts with label economic depression. Show all posts

Thursday, June 2, 2011

10 Reasons Why The “Economic Recovery” Is a Fraud

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Americans have been continually deceived about the true state of the financial system

Dees Illsutration
Paul Joseph Watson
Prison Planet

Yesterday’s so-called “horror” show for the US economy with the release of new data illustrating how the economic “recovery” has all but ground to a halt was met with feigned astonishment and shock by the establishment media, and yet for the past two years the public has been continually deceived about the true state of the financial system.

All the hot air about an “economic recovery” has served to hide the fact that the United States is slipping back into a double-dip recession, if not a second “great depression,” as market strategist Peter Yastrow told CNBC yesterday.

Friday, November 26, 2010

USDA Reports Food Shortages: Wall Street 'Caught Off Guard' by Severity

Eric Blair
Activist Post

Several recent headlines indicate that food prices will continue their swift climb upward. These troubling new reports show that agriculture production and stored grains are critically low and experts are now predicting food shortages on a grand scale. 

Look at a few mainstream headlines:Drought threatens global rice supply in the India Times; VA farmers say heat taking toll on crops,Associated Press; Severe food shortage follows lack of rainfall in Syria; and, finally, Corn prices bolt as USDA downsizes crop estimates, which states that, "Commodity professionals were caught off guard Wednesday by a U.S. Department of Agriculture report showing 1 million fewer acres of corn planted this year than earlier projected, and almost 300 million fewer bushels of corn in storage." And these articles don't begin to address crops being damaged by the toxic rain from the Gulf oil disaster.

We are back to recession economics and rapidly heading toward a deeper, longer “Third Depression.”  With all recent economic indicators setting new record lows and deficits at record highs, this ship is only going one way folks, down, down to Chinatown.  This WTC-Building 7-style-controlled-demolition of the U.S. economy has long been engineered by the borderless banksters and has been set in the same way to collapse at a free-fall rate.  With all of the manufactured confusion it may be difficult to know where best to invest your limited assets, but it seems to be clear that Food is on the march.

There were several trend forecasters and financial firms predicting upwards of $200/barrel of oilbefore the Gulf oil gusher. The “analysts” said this would occur because of the perception of scarcity and a weakening dollar. The oil disaster and the subsequent outrage at Big Oil will surely take care of selling the perception of scarcity, while the Federal Reserve and Congress will surely take care of weakening the dollar.


We’ve seen this Beta test before when oil prices reached their peak of $147 in 2008 sending the price of food to the stratosphere.  Food staples like ricenearly tripled in six months and at times increased 50% in just two weeks, primarily because of record oil prices and a weak dollar in 2008. During this run-up on prices, big box stores like Sam's Club and Costcowere rationing the number of bags of rice customers could buy.  You can bet that Food Crisis Beta 2.010 will be far more severe.

This third factor of actual Food Scarcity, coupled with high oil prices and a feeble dollar, will multiply the severity of increasing food prices.  Whether this scarcity is being engineered to further cull the population or is a genuine imbalance in supply and demand is not important.  The fact is that this reality is playing out in the matrix.  Being aware of this triple-threat to food costs creates an opportunity to soften the recessionary blow, and perhaps offer some economic freedom from those who would like to reduce us all to serfdom.


You don’t have to be an End Times survivalist to believe that storing food is pragmatic.  Everyone with expendable cash can and should design a good food storage and rotation system and buy bulk food as an investment -- in addition to creating self-sufficiency.

Many rationalists are touting guns, ammo, and gold as good small-scale investments given the despicable agenda unfolding in our matrix.  Certainly those are critical investments in an economy dwindling down to the rationing of necessity, but not everyone is into guns or can afford bundles of gold.  And gold, at the end of the day, can only be traded for necessity.

These recent food alerts seem to indicate that food may be the best short-term investment for the “Average Joe.” It's simple:  if the retail cost of rice doubles, as it did in 2008, then you (the investor) make 100% return in something that's immediately tangible and usable.  It’s time to pay the tax penalty for cashing out your mediocre "I-bought-in-to-the-American-Dream" 401K and invest in Food!


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Monday, November 1, 2010

David Broder: War With Iran Will Save Economy, Obama Presidency

Jason Linkins
Huffington Post

So, David Broder has concerns! The economic situation in America is presenting a "daunting situation" that could prevent President Barack Obama from "storm[ing] back to win a second term in 2012." (It also presents a "daunting situation" for millions of Americans who aren't the president, but just go with David here.)

How can Obama "harness the forces that might spur new growth?" Sure, there is "the power of the business cycle," but "economists struggle to analyze this," so Broder's not going to linger too long on whatever might be done in that arena. Instead, has anyone considered maybe -- I don't know -- bombing the daylights out of Iran?



What else might affect the economy? The answer is obvious, but its implications are frightening. War and peace influence the economy.
Look back at FDR and the Great Depression. What finally resolved that economic crisis? World War II.
Here is where Obama is likely to prevail. With strong Republican support in Congress for challenging Iran's ambition to become a nuclear power, he can spend much of 2011 and 2012 orchestrating a showdown with the mullahs. This will help him politically because the opposition party will be urging him on. And as tensions rise and we accelerate preparations for war, the economy will improve.
Wow. Jeezy creezy. Deep breath. Where to begin with this? Here's a fun fact: for much of the economic downturn, we were heavily involved in two wars. I read about this somewhere, I think! As it turns out, they aren't deficit neutral. Whats more, they are tremendously effective resource drainers. And the first resource that's been drained is our military personnel, who have spent the past decade on long, backbreaking deployments. It makes you wonder: who are we going to "accelerate preparations for war" with exactly? It's not like we have an infinite supply of troops upon which to draw.

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The Calm Before the Financial Storm

Michael Snyder
Economic Collpase Blog

An eerie calm has descended upon world financial markets as they await perhaps the two most important financial events of the year this week.  On Tuesday, investors will be eagerly awaiting the results of one of the most anticipated midterm elections in U.S. history.  On Wednesday, the Federal Reserve is expected to end months of speculation by formally announcing the details of a new round of quantitative easing.  If either the election or the meeting of the Federal Reserve open market committee delivers a highly unexpected result, it could have a dramatic impact on world financial markets.  In fact, many are looking at this week as a potential turning point for the U.S. economy.  The decisions that are made or not made this week could set us down a road from which the U.S. economy may never recover.

At this point, it looks like the Republicans will take control of the U.S. House of Representatives and will pick up a number of U.S. Senate seats as well.

There are many in the financial world who already consider Barack Obama to be the most "anti-business" president in U.S. history, so a defeat for the Democrats on Tuesday would be greatly welcomed by many on Wall Street.  Barack Obama's decline in popularity since he was elected has been absolutely stunning.  According to Gallup, Barack Obama had an average approval rating of just 44.7% during the seventh quarter of his presidency, which was a brand new low.  In fact, Obama's average approval rating has fallen during every single quarter since he took office.  Things have gotten so bad for Obama that one new poll has found that 47% of Democrats now think that Barack Obama should be challenged for the 2012 Democratic presidential nomination.

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Incomes Fall, Consumer Spending Weakest in 3 Months

Activist Post

Only a few days after the U.S. government reported that the economy expanded 2% in the third quarter on consumer spending, where they claimed that, "Household purchases, about 70 percent of the economy, rose at a 2.6 percent pace, the best quarter of the recovery that began in June 2009," a new conflicting report says otherwise.

A new report in the Associated Press titledSeptember consumer spending weak while incomes dip seems to directly contradict last weeks uplifting news:
Americans slowed their spending in September to the weakest pace in three months and their incomes fell for the first time in 14 months.
The Commerce Department says personal spending rose at an annual rate of 0.2 percent in September. That's below the 0.5 percent gains recorded in July and August. Incomes actually fell 0.1 percent in September, following a 0.4 percent rise in August that had been pushed higher by the return of extended unemployment benefits.
The weak growth in spending and incomes underscored how fragile the economy remains. Consumers facing high unemployment remain reluctant to spend.
With incomes falling for the first time in 14 months, consumer confidence has fallen to its 2010 lows. The Reuters/University of Michigan index of consumer sentiment fell to 67.7 from 68.2 last month.

Reuters Consumer Confidence Index
These conflicting stories, both derived from the same Commerce Department data, clearly shows a desperate attempt to massage the numbers as favorably as possible.  Meanwhile the bottom continues to fall out of the main street economy as Income inequality in America is at the highest level since the Census Bureau began tracking household income data in 1967, according to Reuters.  It must be election season to have such neurotic headlines.


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Monday, October 25, 2010

Welcome to the Greatest Depression: California’s Best and Brightest Face Homelessness, Poverty

Kurt Nimmo
Infowars.com
October 25, 2010
I don’t know why CBS insists on calling what’s happening economically in this country the “Great Recession.” It’s the Greatest Depression. It is quickly shaping up to be worse than the first Great Depression.
At least CBS admits unemployment is not a measly 9.5 percent like the government claims. It puts it at 17%. Actually it is closer to 23% and will soon eclipse the unemployment rate during the first engineered depression.
Most people realize Obama’s “Summer of Recovery” was a cruel joke. There will not be a recovery. The plan is to turn the U.S. into yet another third-world slave labor gulag. It will take some time to wreck what was once the most productive and prosperous nation in the world. In the meantime, people need to start educating themselves. Turning off CBS and the rest of the corporate media would be an auspicious first step.
I can’t help but think all the intelligent people in the video below are spinning their wheels as they are systematically being pauperized and converted into the latest class of serfs by the banksters. I wonder how many of them will vote for Democrats, Republicans, and the trademarked Tea Party next month. Doing so will seal their fate. The political class in this country works for the international bankers and its transnational corporations. And that includes Tea Party Sarah and the RINO neocons masquerading as our “independent” saviors.
The 99ers are about to have their homes stolen and their meager unemployment checks cut. They will be out in the street. Basically the only choice they have is to get rid of the government now selling them and their children out to a global elite that specializes in converting the planet into a slave labor plantation. Most of the world works for less than two or three dollars a day. The 99ers are about to join them if they don’t get educated fast and stop playing by the rules. It’s a rigged game. The only other choice is to be a slave.
At least CBS admits unemployment is not a measly 9.5 percent like the government claims. It puts it at 17%. Actually it is closer to 23% and will soon eclipse the unemployment rate during the first engineered depression.
Most people realize Obama’s “Summer of Recovery” was a cruel joke. There will not be a recovery. The plan is to turn the U.S. into yet another third-world slave labor gulag. It will take some time to wreck what was once the most productive and prosperous nation in the world. In the meantime, people need to start educating themselves. Turning off CBS and the rest of the corporate media would be an auspicious first step.
I can’t help but think all the intelligent people in the video below are spinning their wheels as they are systematically being pauperized and converted into the latest class of serfs by the banksters. I wonder how many of them will vote for Democrats, Republicans, and the trademarked Tea Party next month. Doing so will seal their fate. The political class in this country works for the international bankers and its transnational corporations. And that includes Tea Party Sarah and the RINO neocons masquerading as our “independent” saviors.
The 99ers are about to have their homes stolen and their meager unemployment checks cut. They will be out in the street. Basically the only choice they have is to get rid of the government now selling them and their children out to a global elite that specializes in converting the planet into a slave labor plantation. Most of the world works for less than two or three dollars a day. The 99ers are about to join them if they don’t get educated fast and stop playing by the rules. It’s a rigged game. The only other choice is to be a slave.




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Tuesday, October 19, 2010

The Perfect Storm

Robert Reich
RSN

It's a perfect storm. And I'm not talking about the impending dangers facing Democrats. I'm talking about the dangers facing our democracy.

First, income in America is now more concentrated in fewer hands than it's been in 80 years. Almost a quarter of total income generated in the United States is going to the top 1 percent of Americans.

The top one-tenth of one percent of Americans now earn as much as the bottom 120 million of us.

Who are these people? With the exception of a few entrepreneurs like Bill Gates, they're top executives of big corporations and Wall Street, hedge-fund managers, and private equity managers. They include the Koch brothers, whose wealth increased by billions last year, and who are now funding tea party candidates across the nation.


Which gets us to the second part of the perfect storm. A relatively few Americans are buying our democracy as never before. And they're doing it completely in secret.

Hundreds of millions of dollars are pouring into advertisements for and against candidates - without a trace of where the dollars are coming from. They're laundered through a handful of groups. Fred Maleck, whom you may remember as deputy director of Richard Nixon's notorious Committee to Reelect the President (dubbed Creep in the Watergate scandal), is running one of them. Republican operative Karl Rove runs another. The U.S. Chamber of Commerce, a third.

The Supreme Court's Citizens United vs. the Federal Election Commission made it possible. The Federal Election Commission says only 32 percent of groups paying for election ads are disclosing the names of their donors. By comparison, in the 2006 midterm, 97 percent disclosed; in 2008, almost half disclosed.

We're back to the late 19th century when the lackeys of robber barons literally deposited sacks of cash on the desks of friendly legislators. The public never knew who was bribing whom.

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From Global Depression to Global Governance

The role of the corporate elites' secretive global think tanks

Andrew Gavin Marshall
Global Research

The following is the text of Andrew Gavin Marshall's presentation at the book launch of The Global Economic Crisis: The Great Depression of the XXI Century", Michel Chossudovsky and Andrew Gavin Marshall (Editors). September 29, 2010, Montreal, Canada.

We now stand at the edge of the global financial abyss of a ‘Great Global Debt Depression,’ where nations, mired in extreme debt, are beginning to implement ‘fiscal austerity’ measures to reduce their deficits, which will ultimately result in systematic global social genocide, as the middle classes vanish and the social foundations upon which our nations rest are swept away. How did we get here? Who brought us here? Where is this road leading? These are questions I will briefly attempt to answer.


At the heart of the global political economy is the central banking system. Central banks are responsible for printing a nation’s currency and setting interest rates, thus determining the value of the currency. This should no doubt be the prerogative of a national government, however, central banks are of a particularly deceptive nature, in which while being imbued with governmental authority, they are in fact privately owned by the world’s major global banks, and are thus profit-seeking institutions. How do central banks make a profit? The answer is simple: how do all banks make a profit? Interest on debt. Loans are made, interest rates are set, and profits are made. It is a system of debt, imperial economics at its finest.
    
In the United States, President Woodrow Wilson signed the Federal Reserve Act in 1913, creating the Federal Reserve System, with the Board located in Washington, appointed by the President, but where true power rested in the 12 regional banks, most notably among them, the Federal Reserve Bank of New York. The regional Fed banks were private banks, owned in shares by the major banks in each region, which elected the board members to represent them, and who would then share power with the Federal Reserve Board in Washington.
    
In the early 1920s, the Council on Foreign Relations was formed in the United States as the premier foreign policy think tank, dominated by powerful banking interests. In 1930, the Bank for International Settlements (BIS) was created to manage German reparations payments, but it also had another role, which was much less known, but much more significant. It was to act as a “coordinator of the operations of central banks around the world.” Essentially, it is the central bank for the world’s central banks, whose operations are kept ‘strictly confidential.’ As historian Carroll Quigley wrote:

"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations."
        
In 1954, the Bilderberg Group was formed as a secretive global think tank, comprising intellectual, financial, corporate, political, military and media elites from Western Europe and North America, with prominent bankers such as David Rockefeller, as well as European royalty, such as the Dutch royal family, who are the largest shareholders in Royal Dutch Shell, whose CEO attends every meeting. This group of roughly 130 elites meets every year in secret to discuss and debate global affairs, and to set general goals and undertake broad agendas at various meetings. The group was initially formed to promote European integration. The 1956 meeting discussed European integration and a common currency. In fact, the current Chairman of the Bilderberg Group told European media last year that the euro was debated at the Bilderberg Group.
        
In 1973, David Rockefeller, Chairman and CEO of Chase Manhattan Bank, Chairman of the Council on Foreign Relations and a member of the Steering Committee of the Blderberg Group, formed the Trilateral Commission with CFR academic Zbigniew Brzezinski.  That same year, the oil price shocks created a wealth of oil money, which was discussed at that years Bilderberg meeting 5 months prior to the oil shocks, and the money was funneled through western banks, which loaned it to ‘third world’ nations desperately in need of loans to finance industrialization.

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Sunday, October 10, 2010

America Plunging to Bankruptcy While DC Plays Politics as Usual

Eric Blair

Activist Post 

More deficit uproar is coming out this week to reveal the quickening pace of the planned implosion of the U.S. economy while politicians wear out the same old arguments. The AP reported Tuesday that the Federal budget gap topped $1 trillion through June with the sub-headline amid GOP resistance to more gov't spending, which went on to state:
The federal deficit has topped $1 trillion with three months still to go in the budget year, showing the lasting impact of the recession on the government's finances.
In its monthly budget report, the Treasury Department said Tuesday that through the first nine months of this budget year, the deficit totals $1 trillion. That's down 7.6 percent from the $1.09 trillion deficit run up during the same period a year ago.
Worries about the size of the deficit have created political problems for the Obama administration. Congressional Republicans and moderate Democrats have blocked more spending on job creation and other efforts. Republicans also have held up legislation to extend unemployment benefits for the long-term jobless because of its effect on the deficit.
This story comes on the heels of the IMF pressuring the U.S. to reduce debt andChina's top credit rating firm downgraded the United States and other western countries. The deficit panic mode is ramping up the rerun political show as fiscal conservatives echo the age-old mantra “cut taxes and spending” while the progressives pretend to be for the little guy and demand more public spending.  However, every economist (and central banker) worth their salt knows that when the money supply contracts the economy goes into a depression, while expanding the money supply to the consumer class stimulates economic growth.

Incidentally, cutting taxes for the consumer and small business class will add money supply to the real economy, as will targeted spending programs on the least among us who must use those funds to consume.  Both political parties are selling partial truths to the public based on their ingrained manufactured principles.  Sadly, the Federal Reserve, the U.S. Treasury, and Cartel of private banks designed the system so that the money must funnel through them first, and thus they will decide how and when to inject it into the economy.  To America’s demise, they’ve done nothing with this money but hoard, consolidate, and front-run for their own gain. Today, JP Morgan reported a 76% increase in profits for their second record-breaking quarter in a row while the real economy sputters to destruction.  In other words, the banksters are looting and raping while the poorest and neediest Americans continue to suffer.  Dylan Ratigan clearly and angrily explains the situation to Congressman Brady below:
The AP article, using the boilerplate mainstream answer, vaguely explains where all the money went:

The deficits have been driven higher by the lingering effects of the worst recession since the 1930s. About one-third of the higher deficits in this period are a result of a drop in government tax revenues.
The other two-thirds of the deficit increases reflect higher government spending to stabilize the financial system with the $700 billion bailout program and the $787 billion stimulus program that Congress passed in February 2009. The increased spending also reflected added demands for such programs as unemployment benefits and food stamps.
Through all this you may be asking yourself, since when did any politician really care about the deficit?  Sure, some of them talk tough, but when it comes down to brass tacks, they all spend like it’s copper.  Congress seems to always find the money for the criminal financial system, the unending unjustified wars, billions in foreign aid to unsavory “allies," billions more in subsidies to foolishly profitable oil companies or GMO giants, and of course plenty of funds to further track, trace, and database the “Perfect Citizens.”  These programs, by design, don’t seem to leave much left for programs that actually benefit the taxpayer directly.  In fact, it seems like our government chooses to fund programs that do nothing but harm and imprison the average taxpayers who fund them.

The depression-by-design is moving forward and the looting is continuing as planned.  The one wild card is whether or not the controllers will keep giving the peasants enough crumbs so they don’t revolt, or if they indeed want and expect a revolt.

I’m reminded of Grover Norquist’s famous quote outlining the demolition by design, "Our goal is to shrink government to the size where we can drown it in a bathtub."   Well, the Neo-con architects obviously grew government by leaps and bounds, in addition to the explosion of the use of private government contractors, which has only been expanded under Obama.  Perhaps what Norquist really meant was they wanted to “reduce and weaken America” so that this small group can kill her completely.  


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