Fall 2007 began the onset
of America's greatest Depression. Europe's in deep trouble. Reckoning
day's delayed by bailing out insolvent banks and throwing money at markets
What can't go on forever, won't. Progressive Radio News Hour guest Bob
Chapman warned investors for years. It's just a matter of time. Houses
built on sand collapse. American and European economies are no exception.
They're sick and getting sicker.
Another Greek crisis approaches, Chapman warns, whether "via austerity,
demonstrations, military coup," or perhaps the worst of all three if
public rage erupts in violence.
Ireland, Portugal, Belgium, Spain and italy are next. BRIC giants China,
India and Brazil are weakening. Pyrrhic victories conceal core meltdown
trouble. Are policy makers "dumb enough to believe that austerity, lower
wages and higher taxes bring prosperity?" What's happening in Europe
and America looks "surreal." Recovery's an illusion.
Another dirty secret is that France, Britain, and other EU countries
also show weakness. "These problems are going to go on and on and on,"
Economist David Rosenberg also warns of trouble. Disturbing signs are
everywhere. In America alone, consumer spending stagnated. Core capex
shipments are down. The trade deficit's widening. Mortgage applications
are falling. Mortgage refinancing activity collapsed. Gas prices are
heading for $4 a gallon on their way perhaps to 5.
In February, hiring announcements were down 85% year-over-year. Pink
slips are rising. JOLTS (Job Openings and Labor Turnover Survey) data
showed job openings down 81,000 in January. They've posted declines
in three of the past four months. JOLTS hiring numbers also fell 30,000,
and dropped in three of the past four months.
Savers are taxed, borrowers rewarded. A rigged system favoring Wall
Street punishes most others.
<blockquote>The latest housing numbers are awful. Economist Robert
Shiller believes "we will never in our lifetime see a rebound in" suburban
home prices. He predicts "perpetual sluggish(ness)." Expect America
to have a "Japan-like slump that will go on for years and years."</blockquote>
Rosenberg says "headwinds are so acute that despite" zero interest rate
policy for over three years, "trippling the Fed's balance sheet, and
four years of trillion-dollar-plus fiscal deficits," a deepening mess
remains. Inflation's far higher than official figures. Poverty's at
Recovery? What recovery! America's 1% never had it so good. Another
10% or so are OK. Most others face harder than ever hard times with
no end of misery in sight. Expect no change post-November, no matter
who's elected president or controls Congress. Washington's criminal
class is bipartisan.
Economist Paul Craig Roberts calls America's economy "dead." Consumer
confidence is far below decade ago levels. Housing's on its back. Retail
sales are lower than January 2000. So is industrial production. Only
markets and rigged GDP numbers are up.
Roberts stresses often that recovery's impossible because troubled consumers
account for over two-thirds of the economy. Middle class jobs moved
offshore. Trillions are thrown at Wall Street and wasted on imperial
wars while domestic needs go begging.
"The consequence of printing money when jobs have been moved offshore
is an inflationary depression. This catastrophe" should unfold big time
this year or next. "The emperor has no clothes, and sooner or later
this will be recognized."
Roberts shares his views with listeners on the Progressive Radio News
Hour (PRNH). So does political economist Jack Rasmus. His analysis is
cutting-edge. In early April, his newest book's due out titled, "Obama's
Economy: Recovery for the Few."
It covers analysis he gives PRNH listeners. He's next scheduled on Saturday,
March 31 at noon US Central time. Listen live or archived for his latest
economic views and discussion of his new book.
It explains that after trillions thrown at Wall Street, trillions more
for imperial wars, and more still in fiscal stimulus (largely for corporations
and rich elites), America's economy remains mired in trouble.
At the same time, equity markets more than doubled. Corporate profits
hit record highs. CEO pay, bonuses, and stock options are obscenely
high, especially for crooked banksters.
At the same time, corporate giants hoard cash and barely loan. Nearly
25 million are unemployed or underemployed. Economist David Rosenberg
believes 30 million heading higher.
Home foreclosures exceed 12 million. Many more are coming. Another 15
million homeowners struggle underwater with negative equity. Income
levels for 80% of households are stagnating, while state and local governments
slash payrolls by hundreds of thousands, cut services, and raise taxes.
Rasmus faults wrongheaded administration, congressional, and Fed policies.
Economic growth is illusory. High unemployment and poverty levels explain
Rasmus' book followed his 2010 one titled, "Epic Recession: Prelude
to Global Depression." Both used reliable data excluded from mainstream
discussion. It's bad and getting worse. Expect harder than ever hard
Rasmus offers another way. He calls it an "Alternative Program for Economic
Recovery." It focuses on job creation, not destruction, housing, and
local government. He recommends major structural economic reforms, targeting
taxes, retirement, and banking.
He concludes with common sense workable proposals for "fundamental,
longer term change necessary to reduce household, small business, and
State-Local government debt, and to restore historic rates of income
growth for working and middle class households."
Read what others say about his book. Office and Professional Employees
Union National President Nancy Wohlforth said it's high time "to seriously
begin public discussion and debate of economic alternatives" he proposes.
They're cutting edge and vital.
South Carolina AFL-CIO President Donna DeWitt offered praise, saying
Rasmus "connects the dots and gives new meaning to common sense economics."
"While working people reel in the downward spiraling economy, (he) analyzes
how we got where we are and makes recommendations for sustained economic
growth and recovery."
"It's the kind of reading that makes every leader stop and say 'Wow!
That makes perfect sense. Why didn't I think of that?' Then ask yourself,
'Why wouldn't our President think of that?' "
"When you've read the book, I'm confident that you will conclude that
Rasmus has done a brilliant job of defining the impact of the Obama
policies and decisions" that continue crisis conditions without letup.
This writer agrees with others. Rasmus' articles and books are cutting
edge. His analysis is some of the best. For years, his predictions proved
accurate. Get them monthly on the Progressive Radio News Hour.
His new book offers must read detailed analysis, especially with storm
clouds approaching at a time forced austerity's harming growing millions.
It hardly matters whether Republicans or Democrats control Washington.
Its criminal class is bipartisan. Public outrage alone can change things.
It starts by getting and staying informed.
On America's economy, Rasmus is one of the best. He's honest, accurate,
thorough, common sense, and clear. For many, his new book may be a wake-up
Read it and spread the word. Our only chance for change is us.
Stephen Lendman lives in Chicago and can be reached at firstname.lastname@example.org.
Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge
discussions with distinguished guests on the Progressive Radio News
Hour on the Progressive Radio Network Thursdays at 10AM US Central time
and Saturdays and Sundays at noon. All programs are archived for easy