Saturday, October 2, 2010

He who controls the money...makes the rules

   Thursday ended the month of September and the third quarter in the economic calendar. The stock market had its best fall month since 1939. The stats all indicated that the recession was over and although admittedly slow, the economy is back on the positive track. Gee, they admitted that the economy grew less then expected. Why? Because these same gurus said that the economy would grow at a 3.6% clip by this period last year and it grew at only a 1.6% snail pace. You see, at 1.6% growth rate, the economy is actually getting worse in terms of unemployment due to school grads entering the market place, immigration, both legal and illegal and the continuing practice of out-sourcing of jobs.
Their Facts versus Mine
   Last week the National Bureau of Economic Research said that the recession was over and it ended in 2009. However, the census bureau reported that 43.9 million Americans are now living in poverty. This is more than the combined populations of Canada and Austria. Another government report stated that personal income grew in August at 0.5 percent. Do you know anyone who got a pay increase? Talk about the 6-degrees of separation. Well, according to this report part of the increase is due to the emergency extention of unemployment benefits. I guess if your unemployment ran out and you have no money, but miraculously you get an extention and now, you have money - well then, that is a pay increase. Again, those who create the money control the rules. Nevertheless, by my stats two more banks failed Friday which brings the total to 129 for the year. Failing banks will soon pass the 140 that was recorded last year which was the worse year since 1992. Yeah, we are on the positive track according to the rule makers. I wonder if they considered the survey by the National Inflation Association(NIA)which concluded that 77% of Americans are living paycheck-to-paycheck or the fact that August broke the record for foreclosures which it set earlier in the year. By the way home prices have fallen year-over-year and for eight straight quarters according to the FHA(Federal Housing Agency). Another government stat states that consumer spending increased in August because again, personal income grew in August. Isn't it amazing that consumer spending on gasoline and food is included in stats for consumer spending and yet, according to the CPI(Consumer Price Index)food and energy are NOT included which is why inflation is subdued, nada, zipo! He who controls the money makes the rules...except this game is corrupt.   

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