In public, most Federal Reserve governors, including the chairman himself, insist that the economy is well on its way to recovery. Behind closed doors, however, the Fed is already debating strategies for what to do if the economy begins to slide:
Federal Reserve officials are beginning to debate quietly what steps they might take if the recovery surprisingly falters or if the inflation rate falls much more.
Fed officials, who meet next week to survey the state of the economy, believe a durable recovery is on track and their next move—though a ways off—will be to tighten credit, not ease it further. Fed Chairman Ben Bernanke has played down the risk of a double-dip recession and signaled guarded confidence in the recovery.
But fiscal woes in Europe, stock-market declines at home and stubbornly high U.S. unemployment have alerted some officials to risks that the economy could lose momentum and that inflation, already running below the Fed’s informal target of 1.5% to 2%, could fall further, raising a risk of price deflation.
source: WSJ
When, not if, the recovery falters is exposed as one big lie, only those that vehemently trust mainstream media will be surprised. The rest of you tin foil extremists will have been proven right, and your doom and gloom will no longer be just pessimism porn, but reality.
Nothing has changed since 2008. Repeat: Nothing has changed since 2008. None of the fundamental issues have been resolved in our banking system, the government has taken on trillions more in debt, unemployment is set to rise into late 2010 and 2011, retail sales are down, the housing market is going o get decimated yet again, and stock markets will likely get slammed by the end of this year.
Of course, we could just be making all this gloom up. But if that were the case, why do Fannie and Freddie need another $160 billion right now to remain solvent, with the potential bailout to rise to $1 trillion in a “worst-case” scenario? Or what about state governments going broke? If every thing was hunky dory, they would not require $50 billion to pay teachers, police and firefighters. These are just a couple of clues among the many hundred (thousand?) out there.
The economic shit is about to hit the fan again. Perhaps this time most Americans will realize that there is not going to be a quick fix and hoping for change will do diddly squat to improve our situation.
Hat tip Paul Revere
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And if that’s not bad enough for you read this. But the Kenyan scarecrow will say everything is fine and dandy on the Gulf Coast.  More lies and censorship on the way.  Â
http://www.zerohedge.com/article/power-blackouts-and-water-shortages-threaten-florida
Nothing but good news here With the Unemployment rate at its lowest since this time last year.
“Industries that added jobs in May were government, with a net gain of 8,400 (including 9,000 census jobs); ” http://www.esd.wa.gov/newsandinformation/releases/jobless-rate-drops-for-second-straight-mo.php
Come on Mac your going to cause a spike in the price of Tin Foil. No seriously, I think the August numbers may be the the edge of the abyss unless a lot of those first time home buyers don’t actually become homeowners this month.
My friends in the mortgage business are telling me 7 out of 10 of these first time buyers are not closing. First hand, I’m not selling new homeowners policies. Anyone who is required to have flood insurance may not be able to close because the NFIP is tied to the unemployment bill. At this time the NFIP is closed.
Stand by and make sure you have enough Tin Foil for your friends and Family.Â
I’m just trying to do my part for the guys in the tin industry. They’re products are highly under rated!
Yeah, those real estate “sales” numbers they quote are often times “pending sales” that have not closed. Nothing is as it seems when we deal with govnumbers.
I did read that new home sales were ok compared to last year, but what about ‘existing’ homes… that’s where the real problem is… 1 in 10 are either delinquent or in foreclosure – for all we know the number is even higher than that… and that doesn’t count those folks who are on the brink of financial disaster or those that will be on the brink if unemployment keeps rising, which it will.
Once upon a time we the people “surprisingly” finally had enough of this shit and took it to the streets. While this demonstration of righteous anger was small at first it grew with “Surprising” speed, and the bigger it got, the more righteously effing angry it became. It was such a show of force that not even the scumbag politicians and their complicit lapdog media could gloss over this one, “surprisingly” enough. What was not “surprising” however was that the whole damned economy fell apart anyway but we the people expedited the process on their own terms and therefore felt better about it. The end.
Things are going from bad to worse in our poor country very quickly. I heard our belived president, Barkie Obungle, on the ‘twonkie’ last night explain to the nation how we were going to use the development of alternative energy to break our dependence of foreign oil and to create American jobs.
With what money Barkie??? Our country is already 13 trillion $ in debt! If we keep printing money, creating it out of thin air, then pretty soon it won’t just be ‘devalued’, it will be worthless!
We need to bring all of our troops back home from around the world while we can still afford to do so. Then we declare bankruptcy as a nation and inform the rest of the world that they aren’t getting paid what we owe them. Then we get back to the business of producing what we need to eat and live and start minding our own business. No more foreign aid to anyone either! We can’t take care of our homeless veterans, why are we sending money abroad to anyone for any reason?
Good luck and God Bless to all. Its going to get interesting around here very quickly!
Good post M&M. You just left out the other $117,000,000,000,000 TRILLION; do I have enough zero’s? From unfunded liabilities like Social Security, Medicare, Fannie and Freddie. We are so far gone there is no way to pay, period!!!
And hey did you see the news today Fannie & Freddie are going to be delisted on the NYSE. Why the markets haven’t collapsed is beyond reason. Who is pumping in the Money, the Fed’s? the EU? China?
Adding more  to the tin foil sales, consider that our Congress has not even begun to put next years Fed budget together ( Fed budget year ends in Sept?)  It looks like they know there is no reason to consider a budget  that will be totally disregarded anyway.
Hope most of  you  have a plan to survive…just saying.