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PIIGS, PRESSTITUTES AND THE GLOBAL MELTDOWN
Yes, there was some concern, but, as The New York Times reported on June 25th, “Two years into the official recovery, the economy is still behaving like a plane taxiing indefinitely on the runway. Few economists are predicting an out-and-out return to recession … analysts generally expect the economy to pick up in the second half.” The economists were forecasting strong job growth for June. But two weeks later, when the numbers came in, the Bureau of Labor Statistics reported that only 18,000 jobs had been created – not the 125,000 jobs projected … by those same economists who were also not “predicting an out-and-out return to recession.” Accordingly, without missing a beat, the Times changed its tune – writing new words to replace the old words they would never be forced to eat: Feeble Job Numbers Show Defying Economists Forecast for Hiring, For the second consecutive month, employers added scarcely any jobs in June, startling evidence that the economic recovery is stumbling … The government also revised downward the small gain for the previous month to 25,000 new jobs, less than half the original estimate. (The New York Times, 9 July 2011) “Dismal Jobs Data Rock US Recovery” and “Worries Grow Over Jobs,” read the respective headlines in the Financial Times and Wall Street Journal on July 9th, dissipating the air of optimism that had recently rallied equity markets. “Employment!” More than factory orders, GDP, corporate profits, retail sales, durable goods … employment was the one big number that counted. There was no way to spin the consequences of 18,000 mostly low paying health care and hospitality jobs into the hopeful message implied by the 125,000 jobs forecast by most economists. The equation was simple; the more people out of work, the less they consume. And in the United States, where consumer spending accounts for an estimated 70 percent of the GDP, without increased consumer spending, the economy was again recession bound. Virtually overnight, one dire employment report unraveled two years’ worth of government spin and media complicity. In April 2010, Vice President Joseph Biden promised, “we’re going to be creating between 250,000 jobs a month and 500,000 jobs a month.” And in August 2010, Treasury Secretary Timothy Geithner declared that the “actions we took at its height [of the crisis] to stimulate the economy helped arrest the freefall, preventing an even deeper collapse and putting the economy on the road to recovery.” But almost a year later, talking on “Meet the Press,” two days after the devastating employment data was released, the new, revised Geithner forecast was, “Oh, I think it’s [the recovery] going to take a long time still. This is a very tough economy. And I think for a lot of people it’s going to be – it’s going to feel very hard, harder than anything they’ve experienced in their lifetime now, for some time to come.” Like the Biden boast long-buried and un-exhumed, the Geithner statement, a direct contradiction of his former projection went unchallenged, given the usual free pass by the “Meet the Press” Presstitutes. There was, and is, no “return to recession.” As The Trends Research Institute had been forecasting since the onset of the Great Recession and the “Panic of ’08,” all those “bold actions” proudly cited by Geithner were no more than financial Prozac – multi-trillion-dollar band aids, palliatives, placebos and cover-ups packaged as TARP, the American Recovery and Reinvestment Act, QE2, and so on. At best, the “bold actions” merely guided the Great Recession into a brief remission, and that is all. Global Ponzi It was a cover-up, not a recovery. And while the US may have been the first, it was not the only nation to try to fraudulently finagle its way out of a crisis and into prosperity. Like the US bailouts, the Greek survival package – praised as an important stopgap success only last week – has neither guaranteed keeping the Greek banking system afloat nor guaranteed it won’t default. Now Italy has caught the contagion. Fattest of the PIIGS (acronym for Portugal, Ireland, Italy, Greece and Spain) – the eurozone’s third largest economy – with its 120 percent public debt to GDP ratio, Italy is bleeding red ink all over its balance sheet. Borrowing more to service its debt load and imposing draconian austerity measures to reign in government spending will, at best, provide a respite from the financial crisis … or, at worst, foment a revolution. (See, “Off With Their Heads, 2.0, Trends Journal, Autumn 2010) Then there’s China, who panicked when the “Panic of 08” blew out their export driven economy, and, like the West, used cheap credit and huge stimulus packages to prevent a major economic contraction. While China’s crisis differs from the West’s in that it has large currency reserves and its debt is homegrown and home-loaned, it’s still debt and has to be repaid. And unlike the West, which pumped trillions into just keeping its economies afloat, the Chinese multi-trillion yuan infusions have created an immense, ready-to-pop property bubble. But this time, like the West, there will be no available fiscal or monetary government policies to re-inflate their faltering economy. And as goes the US, Europe and China – so goes the rest of the world. From India to Israel, Brazil to Bangladesh, Chile to Russia, no nation will escape the economic fallout and few will escape the political consequences. Yet, despite the widely available economic facts and the ample evidence of faulty forecasts and failed government policies, the mainstream media continues to sell the public the big lie. By providing cover for the politicians and financiers, the Presstitutes of the world – with their stable of “well respected” pundits – are accomplices in promoting the egregiously transparent cover-up as a “recovery.” Trendpost: After descending to $1,480 less than two weeks ago, as this is written, gold is flirting with $1,600. We see this surge as a recognition of the greater financial and socioeconomic collapse we have been forecasting since the onset of the “Panic of ’08.” We hold to our forecast of “Gold $2,000,” and depending on how the coming crisis unfolds and the responses to it made by governments and central banks, $2,000 may prove but a temporary ceiling before climbing higher. Publisher’s note: The Summer Trends Journal will be released the last week of July. In the meantime, (speaking only for myself, since The Trends Research Institute does not provide financial advice), I continue to buy gold and Swiss Francs, and have closed my positions in the Canadian dollar. |
| ©MMXI The Trends Research Institute® |
Dear reader,
The difference between Chinese stimulus/inflation and QE2/deficit spending is that:
1) In the “free” democracies inflation is debt with an interest price tag
2) In China inflation is only the inflation of the money supply which is a different form of tax like income tax, GST, etc. (Of course the value of the new money comes from deteriorating savings and declining relative wages).
Since the west has to pay that interest (every year) out of the money supply, the money supply deflates requiring more and more debt. So inevitably people, companies, municipalities, states and nations go bankrupt.
But bankrupty is not simply “cleaning the slate”, but rather someone else owning your assets, pensions, infrastructure and eventually your labour. We have recent examples such as Argentina.
Thank you
The U.S. is following closely the path of Germany during and after WW I, prior to their collapse–printing and borrowing out of complete desperation. Like a condemned sailor walking the plank, it’s citizens blindfolded by ignorance, inching closer towards the end. Tragically, Celente continues to hit the nail on the head, but he is ignored by the most shockingly uninformed among us–our mainstream press. For the prudent, forewarned is forearmed.
We are all in deep trouble. Ben Bernanke, PhD. says that he could have avoided the great depression based on his doctoral thesis.
Based on his thesis what he has decided to impliment in dealing with our present situation isn’t working. So, what will Dr. Bernanke do? He will continue to apply his theory and if it continues not to work he either has to admit that; One, his PhD is invalid or two he will have to find something or someone to blame. I believe he will go for the step number two.
I am currently at Wharton, and the Prof’s here are anything but optomistic. If the debt ceiling is not worked out within thirty days, we are on a path of unwinding treasuries. If it is worked out sooner, well, we are still on the same path–the longer we put this off, the worse it will be. Time to take the pain people.
A public school education followed by a college education in America has produced the most illiterate, incapable of thinking and lazy people in the civilized world.
People educated behind the former Iron Curtain of Russia have a far superior knowledge of the America language and history that 99% of Americans who graduated during the past 25 years. They are better educated in every other field and are more capable and willing to work hard. The Soviet Union example of a superior education is repeated in many other countries.
Americans are also the most docile and trusting people in the world. They have complete trust that the politicians shall take care of them.
And they never learn no matter how many times the flim flam man pulls the same power and money grabbing trick on them.
Obama should be crowned King.
IMO, I think “fouriewa-trendsresearch’s” comment should be appended onto the TrendAlert rather than being just a comment on the TRI site as not everyone will log on here to read this Trend Alert online. This is more of a technicality critique rather than a critique on the substance, as it is a helpful point she(?) is making.
Later,
Why does no one refer to the glass steagal solution presented
at larouchepub.com
Just a thought, research the 65 million empty homes, Condos, super malls in China, and we think America over built.
If this is the present, I can’t imagine the future! The economic situation it has become out of the government hands, which it makes all of us very angry and frustrated! People graduate from college no jobs but they must paid school loans. In this current situation that we are living we need to become a nation of producers and exporter rather then expenditures if we want to secure a future for us and our kids we need to start now. I started a business which aim is helping small business to sell their products over seas and to other businesses within the USA, but their current mentality is totally different then those biz. that are located in Asia or other countries, I also believe and think that your mentality as biz. owner play a major role in how the economic evolve here in the USA and its future. if you are not open minded and recognize the facts and the actual problems there is now way you can help yourself as a person or as a business owners. We Import more than what we export and consume more than what we produce. Through out my years of experience and research I have found great businesses that produce excellent products here in the USA. Businesses that only have a local presence and am talking about just a few miles ration, after you drive out of those few miles no one know who they are, that they exist or existed. I have approach to some of them but when my organization offers them the service they denied even-though is a free service. At this moment all we need to do is recognize the implications, and take proactive strategies.
Whoms plan has it been to reduce the worlds population down to the level of the year 1900 ?
And in how many countries are the slaves of theese arrogant people now making politics together with the banks, to destroy the worlds economy ?
I hope that this nightmare will not last the rest of my days -
and that the MF-Euro will not raise a european dictatorship of banksters.
PEACE and FREEDOM is all the people need !
Greetings from Germany
Ben
thank you
now whats trend going on
now whats trend going on america
and what color for forecost
What is the timetable for this global financial meltdown? US market up 20% since October.
Thanks for the Videos.