It is now clear the US economy has broken down in a BIG way. Indeed, no less than Ben "green shoots" Bernanke has stated that the recovery is "close to faltering." This, coming from a cherrleader like Bernanke is essentially an admission from the powers that be that the US economy is a disaster.
Indeed, the recent manufacturing survey just posted its second consecutive month of contraction. As ZeroHedge noted, collapse in this economic metric has been greater than any two-month period in the last ten years, including 2008.
We also see that the ISM purchasers managers' index, the Philly Fed index, payrolls, and the ECRI weekly leading index are all at or about to break into recessionary levels.
These are, of course, mainstream indicators of economic activity, which are heavily massaged. The economic realities in the US are far worse than even they proclaim as food stamp usage (43 million a record high), the labor participation rate (falling likc a brick) and U6 unemployment numbers reveal (still over 16%).
Suffice to say, the US economy is a disaster. And yet, analysts are expecting another earnings season of double-digit growth (the eighth quarter in a row). Somehow I think we're in for some major surprises to the downside this earnings season.
And this is coming at a time when the markets are already shows signs of MAJOR duress.
Indeed, I truly cannot stress enough how dangerous things are right now. This is the most dangerous market I've ever seen. We're seeing moves of 4-% in just HOURS, not even days.
And considering that leverage levels prior to this round of the Crisis were even higher than those from the Tech Bubble... combined with the $600+ TRILLION in derivatives floating around in the financial system... should give you a sense of how serious the market declines can and will be as this whole thing breaks apart.
The fact remains that we are going down, down, DOWN over the coming months. We're going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.
Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What's coming is going to make 2008 look like a joke.
In short, we're entering the Greatest Depression: the full-scale collapse of the entire credit-based financial system in the developed world.
Comment:
Bernanke says he doesn't know how to fix the economy? Yeah right, and I'm the Prince Of Wales.
We're talking about a man who in reality has more power than the President. Bernanke can pump as much or as little money into the system as he likes. He can raise or lower interest rates as he pleases. He can change banking rules at his whim. And he's stumped as to what to do? I don't think so.
The truth is that Judeo-Capitalists tend to make more profits in bad times than in good. It's only bad times for the middle and working classes. For the wealthy elite, there are only good times, and better times. The better it gets for them, the worse it is for us.
People are getting angry and starting to take action. The "Occupy Wall Street" demonstrations are a good example. I just hope that these events are legitimate, and not being used as a "pressure valve", to make the public only think they're doing something about these greedy leeches.
Until I know for certain, I am backing these demonstrations. If one comes to a town near me, I will attend. Not as a member of the ANP, but just as another working man who is mad as hell. I urge all of you to do like wise.
And to all you Anti's out there, I hope most of you agree. We may disagree on everything else like racism, politics, Gay rights, et al, but even you have to admit that this country is sinking, and it's the fault of greedy banksters and a do nothing government. I think we can at least agree on this one issue.
I'd like to see everyone get out there and make their voices heard if you get the chance. That includes National Socialists, liberals, conservatives, Blacks, Mestizos (legals only, please) even Gay right's groups because most of them work as well. The more voices we have, the louder they'll be.
Dan 88!
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