The Chart at the article
Posted on 04/05/2010 9:13:29 AM PDT by combat_boots
Be warned: Language contained in this Ticker may not be suitable for polite company. Tell the kids to go watch cartoons or better yet, toss a football out in the yard.
If you haven't read the original, penned in 2007, it's here.
Here's my 2010 update.
Many of you think that the rally off the lows last March is some indication of a "new bull market" or that "they saved us." Still more look around and see people spending tax refunds and think "oh wow, look at all the pretty iDouches being sold today."
Let me post - once again - my chart from this morning's Ticker. (Chart posted here is worth seeing).
This is today's economy:
* 42.8% of the unemployed - more than 6.7 million workers - have been unemployed 27 weeks or longer.
* 425,000 of those workers joined the "27 weeks and over" club last month alone. The average duration of unemployment rose by 2.8 weeks last month alone; may I remind everyone that a month only has 4.5 weeks in it?
* Hourly earnings fell last month. How does consumer spending recover if average hourly earnings are going down?
*The government spent $333 billion more than it taxed in March. That's 28% of GDP - or nearly one in THREE dollars spent in the economy.
If you are investing in this market you are taking a terrible risk. There was much money to be made coming off the 2002 bottom, of course. I was in that market (re-entered in the middle of 2003) and did quite well. It was easy - buy an index and sit.
The Chart at the article
Denninger also has a radio piece coming up. This is one of his entries for today:
“The economy is recovering!” “Jobs are strong!” “We need banking reform.” Uh huh. We’ll go through the latest litany of lies and issue indictments - against the media, DC and the banking business. Come join us for a lively hour including some straight-up predictions.
3:30 Central today at http://blogtalkradio.com/marketticker
I puzzled over all of this yesterday and believe I actually came to an insightful conclusive thought about how the Elites that run this country see economic management going forward.
Here’s a snapshot of the mechanism working as they’ve been seeing it; they being those attendant to the New World Order, i.e., Rhinos/Progressives. 1) You can have grotesque gov’t spending IF, you maintain high unemployment, high meaning something on the order of plus 20%; we’re there at 22%, for U6. See: http://www.shadowstats.com/
But.....this works without causing hyper inflation, only if 2) those who are unemployed receive gov’t benefits, thus the grotesque spending ends up in the pockets of those on the dole who in turn continue to spend and consume, albeit at a reduced rate, and if 3) taxes are raised on the Employed and their Employers such that Real Disposable Income is reduced and/or redirected to purchase services from the gov’t such as healthcare.
It’s a new paradigm for the U.S.; it’s an old paradigm and has been in place for quite some time in England. It’s not quite socialism; it’s more like “designer” capitalism. The gov’t decides who wins and who loses, who lives, who dies, how they live, where they live, etc. The “goal” is zero growth; zero economic growth and zero population growth. This can be managed because one sluff result of this economic model is a very high emigration rate which is offset by an open borders policy with an aim to high grade skills.
Maybe the term is "fascism"?
People truly misunderstand the term “FASCIST”, and it’s common usage in the early 20th century. The Chinese model which the world is currently drooling over, and ours are very close to the goal of mirroring the rest of the world.
I don’t always use the proper terms. I’ve been trying more lately. Most people don’t have the education to even know there are subtle differences between certain words.
These days “fascist” is just a short-hand kind of way to say “I don’t like you or agree with what you said but I’m too ignorant or stupid to articulate it in words”.
bookmark
Yes it is just a way of saying I disagree with you. More to the point though, it is a way of saying that the person is not only wrong, but has evil intent.
Good post.
Here’s the alternate shadow stats data:
http://www.shadowstats.com/alternate_data
“Designer capitalism” More like a dark age of noblesse oblige, techno style. Uber riche, the underneath, and the unwashed. Offshoring actual work while resources lie vacated and unused, from people to places to things. This is a caste system, with the Maha-Congress, WH Communists and the Davos Greedy Crowd all rolled into the ‘cream.’
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