We Have A Phony Recovery That Has Sown The Seeds Of Its Own Destruction

TBI ^ | 8-6-2012 | Peter Schiff

[blam]

We Have A Phony Recovery That Has Sown The Seeds Of Its Own Destruction

Peter Schiff, Euro Pacific Capital
Aug. 6, 2012, 9:41 PM

The past week provided clear lessons not just in how central bankers have a limited ability to positively influence the economy but also how they are limited in their capacity to deliver the shortsighted policy actions that investors currently crave. The developments should provide new reasons for investors and economy watchers to abandon their faith in central bankers as super heroes capable of saving the economy.

The employment report released on Friday confirmed that the U.S. economy is stagnating at best and actively deteriorating at worst. While the numbers of jobs created in July was actually better than many economists expected, it was still far below the levels that would indicate a growing economy. But more important than the official unemployment rate (which ticked up to 8.3%) or the number of jobs created, is the number of people who have left the workforce out of frustration or despair.
This number continues to head higher. The labor force participation rate, which is the percentage of healthy working age Americans who actually have jobs, is at one of the lowest points since women first started working en masse in the 1970’s. It’s also instructive to add back into the unemployment rate those who want full time jobs but who have had to settle for part time work. This figure, reported under the “U6” category, currently stands at 15.0%. This is just a 12% decline from the 17.1% high seen December 2009. In contrast the “official” (U3) unemployment figure has declined 17% from its peak.

In explaining these bad results, most economists simply look at the stimulating effects of monetary and fiscal policy...

(snip)

[blam]

The Employment Rate In The United States Is Lower Than It Was During The Last Recession

[SuziQ]

Absolutely NOTHING positive will occur in this economy until after the Nov. election. Very few businesses are going to take the risk and expand while Obama is still in the White House. When he is defeated, and businesses have the confidence that their investments will pay off, they’ll start hiring and expanding again, and we’ll see the economy take off.

[GlockThe Vote]

schiff is my go to guy for everything on the economy.

[wastoute]

The problem is not that we have dug a hole with QE umpteen or whatever. The problem is that the hole they have dug is now so big it probably CAN'T be covered over. The Fed has committed us to a course that really can't be corrected. From here hyperinflation is the only way out. The politicians know this. The may seem stupid but they aren't that stupid. Hence the recent retirement of so many of the old libtard congresscriminals. Like rats leaving a sinking ship, they have “gotten theirs” and now it is time to go. We will have no choice but to start over again and that was the result folks like Cloward and Piven anticipated and desired. The question really is this, “Can we maintain a ‘critical mass’ of conservative values that prevents Soro’s (and others) ambition?” Only God knows...

[blam]

There is no peaceful way back from here.

[blam]

There is no peaceful way back from here.

[blam]

There is no peaceful way back from here.

[Gritty]

There is no peaceful way back from here.

I fear you are right.

When the EBT cards run out or vastly cut back, the cities will burn. It is as simple as that.

There is no way we can curtail this runaway spending without curtailing the money being lavished on parasites and going up in smoke through massive systemic fraud in numerous programs and in outrageous public pensions. Naturally, they will object and try and kill the host to get what they want and think they are owed!

[blam]

"When the EBT cards run out or vastly cut back, the cities will burn. It is as simple as that. "

Every thing (and I mean everything) will be cut to the bone before the EBT and other welfare programs are cut...everyone else knows the same thing we do and the consequences.
SS will be cut before EBT/WIC, etc are touched. (Old people can't riot)

[Gritty]

... everything... will be cut to the bone before the EBT and other welfare programs are cut

I agree. But in the end they will be cut, if not by budget cutters then by runaway inflation.

Even printing money by the boatload will not solve the problem when we are in an economic death spiral - where we will soon find ourselves - partly because politicians won't face what they have sown and what their self-agrandizing policies will inevitably reap.