Monday, 24 September 2012

It's NOT over!................from Rico

The 'recession' of 2007-2009 is not only NOT over as is asserted, it is just another huge, whopping lie from a government that has perfected the fine art of mendacity and routinely tells us the exact opposite of the facts. 'Down' means 'up' to them in the most Orwellian twist of language.
- So, all the 'offishul gummint' charts reflect that the recession ended in 2009, and like Goebbels said if you tell a big enough lie often enough people will believe you.

Look at this FED chart chart of the velocity of money.* It even shows a shaded area/period of time reflecting a 2007-2009 recession. Look closely at the red line as it exits 2009 and continues to today in 2012. It goes DOWN not UP.
*The velocity of money is the average frequency a unit of money is spent on goods and services. Think of it as the amount of economic activity.

The Housing sector is turning around and heading 'up' we're also told. The Housing Activity chart reflects that it has been bottom-bouncing and when averaged over 2009-2012, has been effectively FLAT at the bottom/lower level of the history given.

This does not indicate that anything has been improved by any of the policies implemented thus far, yet the addled 'more of the same that hasn't yet worked, but will somehow if we do a LOT more of the same' fantasy mentality common to Communists and Keynesians continues to rule the day.

Not only is the recession NOT over, but it never ended and that the denial of reality pushed the economy into a worse position than was seen in the Great Depression.
- Zillow says that home values have fallen 26% since 2006, more than the 25.9% decline of 1928-1934.
- Greenspan says the current withdrawl of short-term credit "is worse than the 1930's Great Depression."
- Bank charge-off rates (loan losses) have reached 3.4% compared to 2.25% in 1932 and 3.4% in 1934.
- SNAP (Food Stamps) have managed to make soup lines 'invisible' but even in the Great Depression 1-in-6 Americans never stood in soup lines for meals.

But, in all fairness, perhaps the lie that the Recession ended is a lie by omission, and is merely dodging the scary truth that we are actually IN something that looks to be the Greater Depression and shows no sign of getting any better imminently. Maybe if you don't SAY it or look directly at it, it will go away? This works well for ostriches, but not for anyone else.
- Hmmmmm, maybe the FED knows this and is keeping interest rates at 0% through 2015 because it understands what it won't tell any of us.

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