Thursday, August 5, 2010

The Economy: A Reality Check

Regardless of how many times you hear or read the word "recovery" from the main stream media, reality seems to paint quite a different picture when one steps back from the MSM spin machine and looks at information readily available, but not prepackaged for consumption.

Tim Duy via the Oregonian describes what appears to be a dead cat bounce for Oregon's economic indicators:

" "This drop is discouraging," Duy says, "as it suggests deterioration in hiring demand, which should be strengthening at this stage of the recovery." "

Meanwhile, the AP shows that Oregon's economic stress level is keeping bad company when taking into account unemployment, foreclosures, and bankruptcy for Q1 2010. Yes, we are the same color as Arizona, Florida, Ohio, and Illinois:

To gauge our current economic situation, let's take a look at some less than cheery yet accurate macro economic data:

To top it all off, if our government measured unemployment and inflation (CPI) in the same manner that they did just a generation ago mathematically -things become very clear. But then again, why would our consumer price index include silly things like food or energy? Does anyone regularly purchase those two things anyway?

It's much easier to pay SS benefits, pay bloated public pensions, and easily float US Treasury bonds buried in derivatives and interest rate swaps indexed to a fake inflation number than to face cash flow reality.

Brooksley Born tried to warn us all about derivatives and interest rate swaps in the late 1990s. She was run out of DC on a rail by the banking cartel and the privately owned Federal Reserve Bank. I wonder why?

Meanwhile, CONgress for the first time in 36 years will not pass a budget resolution. Obama's budget chief recently resigned, and half of his economic team has also resigned. It appears as though some folks do not want their name attached to our so called "recovery".

That is of course, with the exception of the distinguished Tim Giethner and Larry Summers who are wholly owned by the Wall St. banking oligarchy. Robert Rubin still lurks in the background. They've all been entrenched in DC and tied to the financial oligarchy long before "Obama" became a household name.

And last but not least with no irony spared, we have the NY Federal Reserve Bank counting underwater loan owners as RENTERS in their future home ownership rate calculations!


Prepare for reality...