Trend forecaster Gerald Celente, of the Trends Research Institute, in his latest Trend Alert to subscribers, says that media presstitutes continue to sell Americans and the rest of the world the big lie of recovery.
It’s nothing more than a cover-up. We never exited the recession that started in 2008.
For the second consecutive month, employers added scarcely any jobs in June, startling evidence that the economic recovery is stumbling … The government also revised downward the small gain for the previous month to 25,000 new jobs, less than half the original estimate. (The New York Times, 9 July 2011)
“Dismal Jobs Data Rock US Recovery” and “Worries Grow Over Jobs,” read the respective headlines in the Financial Times and Wall Street Journal on July 9th, dissipating the air of optimism that had recently rallied equity markets.
“Employment!” More than factory orders, GDP, corporate profits, retail sales, durable goods … employment was the one big number that counted. There was no way to spin the consequences of 18,000 mostly low paying health care and hospitality jobs into the hopeful message implied by the 125,000 jobs forecast by most economists.
The equation was simple; the more people out of work, the less they consume. And in the United States, where consumer spending accounts for an estimated 70 percent of the GDP, without increased consumer spending, the economy was again recession bound.
Virtually overnight, one dire employment report unraveled two years’ worth of government spin and media complicity. In April 2010, Vice President Joseph Biden promised, “we’re going to be creating between 250,000 jobs a month and 500,000 jobs a month.” And in August 2010, Treasury Secretary Timothy Geithner declared that the “actions we took at its height [of the crisis] to stimulate the economy helped arrest the freefall, preventing an even deeper collapse and putting the economy on the road to recovery.”
But almost a year later, talking on “Meet the Press,” two days after the devastating employment data was released, the new, revised Geithner forecast was, “Oh, I think it’s [the recovery] going to take a long time still. This is a very tough economy. And I think for a lot of people it’s going to be – it’s going to feel very hard, harder than anything they’ve experienced in their lifetime now, for some time to come.”
Like the Biden boast long-buried and un-exhumed, the Geithner statement, a direct contradiction of his former projection went unchallenged, given the usual free pass by the “Meet the Press” Presstitutes.
There was, and is, no “return to recession.” As The Trends Research Institute had been forecasting since the onset of the Great Recession and the “Panic of ’08,” all those “bold actions” proudly cited by Geithner were no more than financial Prozac – multi-trillion-dollar band aids, palliatives, placebos and cover-ups packaged as TARP, the American Recovery and Reinvestment Act, QE2, and so on. At best, the “bold actions” merely guided the Great Recession into a brief remission, and that is all.
We’re still in the thick of it, and we have perhaps a decade left to go before any semblance of normalcy returns to the American economy (if we’re lucky).
Yesterday, our President threatened social security retirees by suggesting that the government wouldn’t be able to send them their checks come August. This, of course, is a complete fabrication and political power play by Mr. Obama, once again threatening that the sky is falling in order to bamboozle the American public into spending trillions more dollars on a failed economic recovery policy.
It’s not working. Nothing the government has done thus far has worked.
As Mr. Celente points out above, it’s about jobs and consumer spending, neither of which are improving in any significant way.
Unemployment benefit applications have topped 400,000 per week for the last 14 weeks, and save a couple of months under 400,000, have been this way since the recession began. Consumer spending is being pummeled, falling below expectations again. The economy is contracting and financial firms are quietly lowering earnings expectations across the board.
Many will argue that we did, in fact, exit the recession when our GDP growth quarter-over-quarter went positive last year. But considering that GDP growth has been full funded by government intervention over the last three years and the real inflation rate of 10% has a lot to do with the increase in spending over that time, it should be clear that global GDP growth numbers are fictitious, much like this so-called economic recovery.
The recession never ended. More importantly, we are in the midst of the next Great Depression right here and now.