If you’ve read Karl Denninger, Mike Shedlock, John Hussman, Zero Hedge or TBP on a regular basis, you would know the recession we’ve entered is not a surprise. It has been clear to people without rose colored glasses or those not being paid by Wall Street shysters, that the “solutions” implemented by the ruling class were never meant to solve anything. They were meant to keep the rich and powerful from becoming less rich and powerful. They treated a problem of insolvency as if it was a problem of liquidity. The biggest banks in the world are still insolvent. But now some of the biggest countries in the world are insolvent because our leaders chose to save bankers at the expense of the citizens. The entire recovery storyline has been false. It was nothing but smoke and mirrors. Wall Street continues to party on, while Main Street sees water main breaks, sinkholes, and power outages.
We should be having t-shirts made with the saying:
WE INCREASED THE NATIONAL DEBT BY $5 TRILLION AND ALL I GOT WAS THIS STUPID T-SHIRT
Ben Bernanke will continue to print money out of thin air until he is green in the face, but it won’t work. Exponential growth in debt is leading to disaster. The entire world is plunging into phase two of the Greater Depression. Central bankers and corrupt brain dead Keynesian politicians have shot their load. Everybody knows. The solutions failed. The captains lied.
This presages a nasty official ISM next week…
“The Chicago Purchasing Managers reported September’s Chicago Business Barometer fell to 49.7, its lowest level in three years…… Prices Paid showed the biggest gain in nearly two years.“
This isn’t good folks and serves as confirmation of what I’ve been saying for a while on the leading indicators I watch — recession is baked in the cake and it’s too late to “fix it.”
The markets have not priced this in but they’re sure dumping on this today, with the DOW down triple digits and the SPX down 10 (so far.)
Employment in the survey is at a 2-1/2 year low, new orders, backlogs and supplier deliveries have their 3-month moving averages at the lowest levels since mid-2009.
Remember that mid-2009 was the alleged floor, which means we’re now at levels that are at the worst they were before we allegedly turned the corner.
Production in the report remained positive, but new orders is not, backlogs turned last month below 50 and remained there this month, inventories are flat, employment is just barely positive (and for Chicago this is terrible — that economy is typically VERY resiliant) and prices paid ramped, reflecting commodity price increases.
How can this be? It’s simple, really — you were lied to. Repeatedly. Intentionally. For the explicit purpose of goading you into overspending and borrowing (again) so that the banksters and politicans would not have to face the truth.
They failed, because arithmetic doesn’t care about politics.
It just is.
We blew it folks. We, the people blew it.
We have serially refused to hold our politicians to account. We have refused to insist on jailing the banksters and putting a stop to the scams, from HFT on down the line. We are cheering for the Party of Frauds on both sides of the aisle instead of demanding that someone, anyone, step forward with the truth. We think it’s all ok when the number of people on food stamps reaches an all-time high and a sudden ramp in “disabled” people is acceptable (who weren’t disabled just a few years ago when jobs were easier to come by.)
The bill is on the table for our idiocy, especially our fiscal and monetary policy idiocy, and the waiter is tapping his foot.
Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows that the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
Thats how it goes
Everybody knows
Everybody knows that the boat is leaking
Everybody knows that the captain lied
Everybody got this broken feeling
Like their father or their dog just died
Everybody talking to their pockets
Everybody wants a box of chocolates
And a long stem rose
Everybody knows
Everybody knows that you love me baby
Everybody knows that you really do
Everybody knows that youve been faithful
Ah give or take a night or two
Everybody knows youve been discreet
But there were so many people you just had to meet
Without your clothes
And everybody knows
Everybody knows, everybody knows
Thats how it goes
Everybody knows
Everybody knows, everybody knows
Thats how it goes
Everybody knows
And everybody knows that it’s now or never
Everybody knows that it’s me or you
And everybody knows that you live forever
Ah when youve done a line or two
Everybody knows the deal is rotten
Old black Joe’s still pickin cotton
For your ribbons and bows
And everybody knows
And everybody knows that the plague is coming
Everybody knows that it’s moving fast
Everybody knows that the naked man and woman
Are just a shining artifact of the past
Everybody knows the scene is dead
But theres gonna be a meter on your bed
That will disclose
What everybody knows
And everybody knows that you’re in trouble
Everybody knows what youve been through
From the bloody cross on top of Calvary
To the beach of Malibu
Everybody knows it’s coming apart
Take one last look at this sacred heart
Before it blows
And everybody knows
Everybody knows, everybody knows
Thats how it goes
Everybody knows
Oh everybody knows, everybody knows
Thats how it goes
Everybody knows
Everybody knows
Administrator says:
Even if you start from when the recession ended in June, 2009, the decline since then has been greater than it was during the recession. Three years into the Obama recovery, median family income had declined nearly 5% by June, 2012 as compared to June, 2009. That is nearly twice the decline of 2.6% that occurred during the recession from December, 2007 until June, 2009. As the Wall Street Journal summarized in its August 25-26 weekend edition, “For household income, in other words, the Obama recovery has been worse than the Bush recession.”
For all of this “progress,” the government has indebted our grandchildren by an additional $5 trillion. Spending continues out of control and the middle class is being destroyed.
… the median annual income of American households was $53,718 as of June 2009, the last month of the recession. Now, after 38 months of this “recovery,” it has fallen to $50,678 — a drop of $3,040 per household.
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28th September 2012 at 1:11 pm
John Angelo says:
Does anyone remember the public service announcements from the cartoon G.I. Joe? It would end with the phrase “Now you know, and knowing is half the battle.” That’s how I feel after reading an article like this. The only thing is, most of us reading this already know, so the other half of the battle is spreading the word and getting decision-making authority to those “in the know.”
http://4.bp.blogspot.com/-iMncqoKh-aU/T3W3oc_zp1I/AAAAAAAAAzw/K_N3HTqpdeU/s1600/rpshirt3.jpg
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28th September 2012 at 1:38 pm
Stucky says:
Recession? What recession?
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28th September 2012 at 1:43 pm
backwardsevolution says:
“That head in sand following of stock exchange digits is not smart, not for anyone. It allows for Ben Bernanke to claim he wants to attack unemployment – something that sounds good, beneficial – (but hardly his mandate to begin with), while all he actually does with QE 1,2,3,4,5, n…, is transfer bank losses to the public account. Ditto for Draghi. Central bankers don’t help the nations they purport to represent, they represent the banks in those nations. And since the largest banks are multinationals, the central bankers largely represent international banking interests. Not you or me.
Central banks are the ideal conduit for Grand Theft Auto. And they will remain so for as long as the people in the street can be fooled into thinking that it’s their interests that are the focus of the bailouts. More jobs, cheaper mortgage loans, that sort of thing. It doesn’t stop, does it? I see a big coordinated push from builders, unions, banks, developers etc. for the yet to be formed new Dutch government to make it easier for more people to borrow more money, in the face of the 5% drop in sales and 8% drop in prices the country saw in 2011.
And tons of people undoubtedly WANT to borrow more. Because they see no connection with the lower prices. On the contrary, they’ve been fed the idea that lower prices, like the entire recession, is something temporary, so they even see it as an opportunity. To buy more. To buy larger. 10 years ago Dutch home prices rose 20% per year, for years on end. And they all think that is some sort of new normal. Why the builders and banks think so is obvious. Why the buyers do, not so much. They are simply never told what is real. Not by builders, not by banks, and not by the people they voted into government.
Well, here’s your reality, homebuyers in Holland and everywhere else in the western world: you’re signing up to be shoved into the lower ranks of a pyramid scheme. You will start losing your jobs, your benefits, your pensions, but your debts will remain as high as they are now. And if you can’t pay them off, your debts will grow.
Who should take preference when it comes to government protection and information, banks and industries, or the people? The official line of course is that if and when the government makes sure the banks and large industries do well, the people’s interests will trickle down and follow. But we have seen five years, at the very least, of proof that this is bogus. You can pour behemoth amounts of money into your banking system, but if its debts are behemoth squared, nothing will trickle down. Oh wait, that’s not true. Something will start trickling down. Debt.
The people who are already knee and neck deep in obligations they will never be able to meet, have new debt laden on their shoulders every single day, and more so with every iteration of QE, and they will never be the wiser for it; the poorer all the more, however.”
http://theautomaticearth.com/Finance/theres-only-one-way-forward-for-europe-and-this-isnt-it.html
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28th September 2012 at 1:53 pm
Hope@ZeroKelvin says:
It does not matter what the facts are about this dismal economy under Obama. Clinton came out in the DNC and said that no one could have fixed this economy, even him, so we shouldn’t blame Obama.
That is the Dem narrative and it is working, regardless of every single POS economic data point you want to point out.
I doubt Mitt could turn it around, even with his otherwise great record, but at least if the whole thing crashes, we have a decent guy at the helm instead of a narissistic psychopath backed by Leftie and radical Islamists who hates America and wants to see us cut down to size, heh.
So, if the country is that far gone is a lack of critical thinking and analysis, well, let ‘em vote Obama and then let’em live through the consequences of another 4 catastrophic years, assuming we get another 4 years.
I’m off to continue my preps, get even more of my money out of the US banking system and definitely make a run by the ammo store this afternoon.
You can’t fix stupid. You can only protect yourself from it.
Hot debate. What do you think?
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28th September 2012 at 2:16 pm
ron says:
Well RP has been talking about this stuff for years.I dont remember many folks in Holland owning homes,most lived in apartments.But it has been awhile.I remember how my relatives couldnt grasp the idea of credit and loans.They just bought things with cash,imagine that!
I get tired of folks debating about if we are in a reccesion?Its like everyone is asleep.They dont have unemployed friends or see closed stores?My main concearn is how long can things last.
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28th September 2012 at 2:50 pm