Zombie Government Reality Check
By Daniel at 8 December, 2009, 7:03 pm
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The stats and growth prognostications from tout television, New York banksters, our Federal Reserve, U.S. Treasury, and various U.S. Government fiscally incestuous cabal members are replete with liars, exaggerators, and crooked politicians. The U.S. Government and several others are economically dead; they just haven’t admitted it yet.
The United States’ financial affairs are an empty burning hulk of disaster.
There is not enough taxing power, stealing power, money and bond-printing power on this globe for these dudes to worm their way out of a major collapse. It may take some time, but its coming for sure. There is no way out except to inflate. And, we know how that one ends. Read about Germany’s hyper-inflation of 1921-1922.
We are not yelling fire in this theatre of the absurd but rather giving an untenable situation the cold, blank, fishy-eyed stare of an auditor. Two and two isn’t 20 and never will be. Most everyone is broke and going broker. Even those with no debt and holding supposedly strong assets in government paper and real estate reside in quicksand. Why, because these assets are only worth what a buyer will pay for them on any given day. And, on this day, most asset values are plummeting.
There is simply way too much debt, way too little cash and credit, and an astounding inability to pay the bills.
The stock and bond markets are one big phony scam with the exception of those holding hard asset reserves in precious metals. Food and energy assets roll up and down like a yo-yo along with the latest media fiction and last quote on the dollar. Oil and gas reserves along with real food as in grain, meat, vegetables, etc. have true value. This value is volatile as it relates to fiat currencies being diminished by the hour as governments race to manufacture new money using computers and printing presses.
Artificial Growth Courtesy Of Government Taxes Take a minute and think about what propels these so-called recovery markets.
The phony, positive GDP growth rate announced on October 29 is a bald-faced lie. John Williams at Shadowstats.com, our trusted and very accurate source of numbers, says the annual GDP rate is sinking at -5.7% and we would agree.
We’ve previously reported that when a nation’s GDP-to-debt ratio surpasses 6% it can never recover; that is historical fact. The USA’s today is projected at 13% and getting worse. Since statistical distortion is the name of the game even the government hasn’t a clue whether its 6, 13 or 30. One thing we know for sure; it’s much worse than imagined.
Consumers’ primary assets are cars and houses. Cash for Clunkers was a clunker that cost taxpayers $28,000 per car as one analyst reported. Further, it took paid-for cars and trucks off the road and sunk these new vehicle owners into payments they cannot afford. Look for those new vehicles to be repossessed in few months.
Consumers’ residential loan failures are legendary. New homes are being produced at a rate of 400,000+ per year with a normal year being 1,700,000. It that a recovery? That’s a disaster! Other used home sales seeming to be perking-up are those of new buyers getting free down payments from the government. How long are those loans any good?
John Williams tells us durable goods, the hard, expensive stuff like furniture and appliances fell to a 1997 order level. He also told us help-wanted advertising for jobs sits at a 58 year low. Is that a growing economy?
These broken consumers need jobs and credit and have neither. As governments and central banks steal more taxes and print more currencies in this low interest environment, hyper-inflation seems inevitable to us.
We are already in a depression so we get a hyperinflation-depression. This is the worst of all worlds.
Busted consumers are living-off credit cards and bankers are jacking-up interest rates to 30% as they too, are broke and have no new banker loan income either.
- Prophecy
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