Black People : will Anyone tell the truth about the Economy??

Discussion in 'Black People Open Forum' started by Putney Swope, Sep 23, 2009.

  1. Putney Swope

    Putney Swope Well-Known Member MEMBER

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    Even the Part-Time Jobs are Disappearing
    The Economy is a Lie, Too
    By PAUL CRAIG ROBERTS

    Americans cannot get any truth out of their government about anything, the economy included. Americans are being driven into the ground economically, with one million school children now homeless, while Federal Reserve chairman Ben Bernanke announces that the recession is over.

    The spin that masquerades as news is becoming more delusional. Consumer spending is 70% of the US economy. It is the driving force, and it has been shut down. Except for the super rich, there has been no growth in consumer incomes in the 21st century. Statistician John Williams of shadowstats.com reports that real household income has never recovered its pre-2001 peak.

    The US economy has been kept going by substituting growth in consumer debt for growth in consumer income. Federal Reserve chairman Alan Greenspan encouraged consumer debt with low interest rates. The low interest rates pushed up home prices, enabling Americans to refinance their homes and spend the equity. Credit cards were maxed out in expectations of rising real estate and equity values to pay the accumulated debt. The binge was halted when the real estate and equity bubbles burst.

    As consumers no longer can expand their indebtedness and their incomes are not rising, there is no basis for a growing consumer economy. Indeed, statistics indicate that consumers are paying down debt in their efforts to survive financially. In an economy in which the consumer is the driving force, that is bad news.

    The banks, now investment banks thanks to greed-driven deregulation that repealed the learned lessons of the past, were even more reckless than consumers and took speculative leverage to new heights. At the urging of Larry Summers and Goldman Sachs’ CEO Henry Paulson, the Securities and Exchange Commission and the Bush administration went along with removing restrictions on debt leverage.

    When the bubble burst, the extraordinary leverage threatened the financial system with collapse. The US Treasury and the Federal Reserve stepped forward with no one knows how many trillions of dollars to “save the financial system,” which, of course, meant to save the greed-driven financial institutions that had caused the economic crisis that dispossessed ordinary Americans of half of their life savings.

    The consumer has been chastened, but not the banks. Refreshed with the TARP $700 billion and the Federal Reserve’s expanded balance sheet, banks are again behaving like hedge funds. Leveraged speculation is producing another bubble with the current stock market rally, which is not a sign of economic recovery but is the final savaging of Americans’ wealth by a few investment banks and their Washington friends. Goldman Sachs, rolling in profits, announced six figure bonuses to employees.

    The rest of America is suffering terribly.

    The unemployment rate, as reported, is a fiction and has been since the Clinton administration. The unemployment rate does not include jobless Americans who have been unemployed for more than a year and have given up on finding work. The reported 10% unemployment rate is understated by the millions of Americans who are suffering long-term unemployment and are no longer counted as unemployed. As each month passes, unemployed Americans drop off the unemployment role due to nothing except the passing of time.

    The inflation rate, especially “core inflation,” is another fiction. “Core inflation” does not include food and energy, two of Americans’ biggest budget items. The Consumer Price Index (CPI) assumes, ever since the Boskin Commission during the Clinton administration, that if prices of items go up consumers substitute cheaper items. This is certainly the case, but this way of measuring inflation means that the CPI is no longer comparable to past years, because the basket of goods in the index is variable.

    The Boskin Commission’s CPI, by lowering the measured rate of inflation, raises the real GDP growth rate. The result of the statistical manipulation is an understated inflation rate, thus eroding the real value of Social Security income, and an overstated growth rate. Statistical manipulation cloaks a declining standard of living.

    In bygone days of American prosperity, American incomes rose with productivity. It was the real growth in American incomes that propelled the US economy.

    In today’s America, the only incomes that rise are in the financial sector that risks the country’s future on excessive leverage and in the corporate world that substitutes foreign for American labor. Under the compensation rules and emphasis on shareholder earnings that hold sway in the US today, corporate executives maximize earnings and their compensation by minimizing the employment of Americans.

    Try to find some acknowledgement of this in the “mainstream media,”
    or among economists, who suck up to the offshoring corporations for grants.

    The worst part of the decline is yet to come. Bank failures and home foreclosures are yet to peak. The commercial real estate bust is yet to hit. The dollar crisis is building.
    When it hits, interest rates will rise dramatically as the US struggles to finance its massive budget and trade deficits while the rest of the world tries to escape a depreciating dollar.

    Since the spring of this year, the value of the US dollar has collapsed against every currency except those pegged to it. The Swiss franc has risen 14% against the dollar. Every hard currency from the Canadian dollar to the Euro and UK pound has risen at least 13 % against the US dollar since April 2009. The Japanese yen is not far behind, and the Brazilian real has risen 25% against the almighty US dollar. Even the Russian ruble has risen 13% against the US dollar.

    What sort of recovery is it when the safest investment is to bet against the US dollar?

    The American household of my day, in which the husband worked and the wife provided household services and raised the children, scarcely exists today. Most, if not all, members of a household have to work in order to pay the bills. However, the jobs are disappearing, even the part-time ones.

    If measured according to the methodology used when I was Assistant Secretary of the Treasury, the unemployment rate today in the US is above 20%. Moreover, there is no obvious way of reducing it. There are no factories, with work forces temporarily laid off by high interest rates, waiting for a lower interest rate policy to call their workforces back into production.

    full article
    on counterpunch.com
     
  2. Putney Swope

    Putney Swope Well-Known Member MEMBER

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  3. emanuel goodman

    emanuel goodman Well-Known Member MEMBER

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    one must understand the game. i learned my most powerful lessons from my sociology teacher during my entry level master courses. He informed me that the only way to make major change is to have society to it! He labeled it society screaming. In our case a major change from the appearance of a corporative approach between goverments to the unveiling on a one world power was on the agenda. This can only take place by currently crippling the structure or base. In this case it is the america economy and dollar thus having society choose a "new" route. It is the same product only package differently. Just like the brothers going from a green bag to blue and changing the name "puff daddy" to "p diddy" same igga. In this game same players same control. One cannot inflict major change on society they must choose it similar to 911. There was no way in hell america would have approve an iraq invasion or the defense bill before that. after 911 they called for it. The public will call for this one world goverment in the name of safety and stablity. One does not want a car or house alarm in most cases until some one has broken into thier home. How can there be a recession when the world in overflowing wit goods and natural resources. It is too late this plan has been in motion since 1945. hetep
     
  4. MRS. LADY

    MRS. LADY Banned MEMBER

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    :bowdown:
     
  5. Ankhur

    Ankhur Well-Known Member MEMBER

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    that was last year nd the truth still is not getting out
     
  6. jamesfrmphilly

    jamesfrmphilly going above and beyond PREMIUM MEMBER

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    crac head in the candy store

    :fyi: the truth is that criminal capitalist madmen are destroying the global economy.
     
  7. cherryblossom

    cherryblossom Banned MEMBER

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    The following are 40 bizarre statistics that reveal the truth about the collapse of the U.S. economy

    1 - According to one shocking new survey, 28% of U.S. households have at least one member that is looking for a full-time job.

    2 - A recent Pew Research survey found that 55 percent of the U.S. labor force has experienced either unemployment, a pay decrease, a reduction in hours or an involuntary move to part-time work since the recession began.

    3 - There are 9.2 million Americans that are unemployed but that are not receiving an unemployment insurance check.

    4 - In America today, the average time needed to find a job has risen to a record 35.2 weeks.

    5 - According to one analysis, the United States has lost 10.5 million jobs since 2007.

    6 - China's trade surplus (much of it with the United States) climbed 140 percent in June compared to a year earlier.

    7 - This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.

    8 - According to a poll taken in 2009, 61 percent of Americans "always or usually" live paycheck to paycheck. That was up significantly from 49 percent in 2008 and 43 percent in 2007.

    9 - According to a recent poll conducted by Bloomberg, 71% of Americans say that it still feels like the economy is in a recession.

    10 - Banks repossessed 269,962 U.S. homes during the second quarter of 2010, which was a new all-time record.

    11 - Banks repossessed an average of 4,000 South Florida properties a month in the first half of 2010, up 83 percent from the first half of 2009.

    12 - According to RealtyTrac, a total of 1.65 million U.S. properties received foreclosure filings during the first half of 2010.

    13 - The Mortgage Bankers Association recently announced that demand for loans to purchase U.S. homes has sunk to a 13-year low.

    14 - Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.

    15 - 1.41 million Americans filed for personal bankruptcy in 2009 - a 32 percent increase over 2008.

    16 - Back in 1950 each retiree's Social Security benefit was paid for by 16 workers. Today, each retiree's Social Security benefit is paid for by approximately 3.3 workers. By 2025 it is projected that there will be approximately two workers for each retiree.

    17 - According to a new poll, six of 10 non-retirees believe that Social Security won't be able to pay them benefits when they stop working.

    18 - 43 percent of Americans have less than $10,000 saved for retirement.

    19 - According to one survey, 36 percent of Americans say that they don't contribute anything to retirement savings.

    20 - According to one recent survey, 24% of American workers say that they have postponed their planned retirement age in the past year.

    21 - The Conference Board's Consumer Confidence Index declined sharply to 52.9 in June. Most economists had expected that the figure for June would be somewhere around 62.

    22 - Retail sales in the U.S. fell in June for a second month in a row.

    23 - Vacancies and lease rates at U.S. shopping centers continued to get worse during the second quarter of 2010.

    24 - Consumer credit in the United States has contracted during 15 of the past 16 months.

    25 - During the first quarter of 2010, the total number of loans that are at least three months past due in the United States increased for the 16th consecutive quarter.

    26 - Things are now so bad in California that in the region around the state capital, Sacramento, there is now one closed business for every six that are still open.

    27 - The state of Illinois now ranks eighth in the world in possible bond-holder default. The state of California is ninth.

    28 - More than 25 percent of Americans now have a credit score below 599, which means that they are a very bad credit risk.

    29 - On Friday, U.S. regulators closed down three banks in Florida, two in South Carolina and one in Michigan, bringing to 96 the number of U.S. banks to be shut down so far in 2010.

    30 - The FDIC's deposit insurance fund now has negative 20.7 billion dollars in it, which represents a slight improvement from the end of 2009.

    31 - The U.S. federal budget deficit has topped $1 trillion with three months still to go in the current budget year.

    32 - According to a U.S. Treasury Department report to Congress, the U.S. national debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015.

    33 - The M3 money supply plunged at a 9.6 percent annual rate during the first quarter of 2010.

    34 - According to a new poll of Americans between the ages of 44 and 75, 61% said that running out money was their biggest fear. The remaining 39% thought death was scarier.

    35 - One study found that as of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.

    36 - The bottom 40 percent of all income earners in the United States now collectively own less than 1 percent of the nation’s wealth.

    37 - The number of Americans with incomes below the official poverty line rose by about 15% between 2000 and 2006, and by 2008 over 30 million U.S. workers were earning less than $10 per hour.

    38 - According to one recent study, approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.

    39 - For the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.

    40 - A new Rasmussen Reports national telephone survey has found that just 23% of American voters nationwide believe the federal government today has the consent of the governed.



    http://thetruthwins.com/archives/40...g-truth-about-the-collapse-of-the-u-s-economy
     
  8. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa and Peace and Love!

    will Anyone tell the truth about the Economy??


    According to Jimmy McMillan...the rent is too high.

     
  9. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    Here's one truth...

    We're broke...But the government isn't....and they're stingy liars

    Okay that was three...
     
  10. Ankhur

    Ankhur Well-Known Member MEMBER

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    Now the latest news says, the Fed says the economy is growing



    Growing for who?
     
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