Sunday, January 10, 2010

Wake Up America: There Is NO Economic Recovery Happening!

One subject that I have not covered in a while has been the state of the US economy, and the economies of other Western nations. There has been a mass blitz in the Zionist media to say to the general public that "happy days" are just around the corner, and full economic recovery is going to happen sometime in this coming year.

I am here to give the people the bitter truth: There is NO Economic Recovery Happening, and there will be no economic recovery unless people wake up and take their countries back from the evil Zionist bankers who created the economic mess in the first place!

As some proof of the true state of the economy and to show evidence that there is no economic recovery approaching any time soon, here is an article via that shows evidence of the failing economy. Here is the article:

There Is NO Economic Recovery Happening

Source: Market Ticker

Look folks, this is really quite simple.

Economic Stability and Recovery = Credit Expansion.

We cannot recover until we purge the excess debt from the system, and the longer we take to do that, the longer the pain will last and the worse it will be.

President Obama and Tim Geithner know this - that's why they are constantly harping on banks to "lend more."

Well, they may want banks to lend more but the people are fed up with being debt slaves and are borrowing less.

Today, we got the latest from The Fed on this subject:

Consumer credit decreased at an annual rate of 8-1/2 percent in November. Revolving credit decreased at an annual rate of 18-1/2 percent, and nonrevolving credit decreased at an annual rate of 3 percent.

I have updated the charts, and this is where we are as of November:

Non-revolving debt (basically auto loans) has pretty much stabilized since mid-year. But consumer revolving debt - credit cards - continues to accelerate in its rate of decline.

The longer-term view looks like this:

These rates of decline are unprecedented and they are not slowing down.

The drop in credit card debt outstanding is on the largest on record since The Fed started keeping those records in 1943!

Consumer recovery?

There is none!

It is axiomatic that you can pump yourself full of speedballs (e.g. government spending) and stay up for days at a time. It is also true that if you do too many speedballs you will have a heart attack and die, and there is no way to know precisely which is the "one too many" until you shoot it - at which point it's too late to change your mind!

The so-called "recovery" has been driven by pump-priming, which has had at its root one primary intent - to drive citizens into herd behavior and get them to spend more and more (that they don't have!)

But at the same time this has been the message credit card rates have been ramped and lines slashed. So now Joe Six Pack is faced with a 30% interest rate on his credit card - if he has any open line left!

There is no possible way for this program to work, since the entire problem originally - what began this recession - was people that were unable to make their debt payments in the first place!

Small business will not hire until their debt load comes down to a reasonable level. This will take literal years if we don't quit trying to prevent the contraction of both asset prices and credit levels. In the mean time millions of Americans will remain in destitution!

There is no way to avoid the bankruptcy of those firms and individuals who are over-levered. The best solution (take the pain now!) will not prevent the bankruptcies, but it will get them over with and let the nation begin to emerge from the morass within 12-18 months. For every month we keep trying to prevent the liquidation of insoluble debt we add months of additional time to that required to resolve the bust and deepen the amount of pain that must be suffered, since all we are doing is adding more debt upon existing debt.

It is time for Washington DC, including The Fed and Congress along with President Obama to embrace the facts - we must finish the de-leveraging that is necessary to return the citizens and corporations of this nation to fiscal health. At the same time the government must stop spending twice what it takes in in taxes.

We have consumed too many speedballs, our heart rate is now 160, and if we don't cut it out the bond market is telling us that we are about to have a fatal heart attack.

NTS Notes: The evidence is pretty clear... Government spending, overtaxation, and poor and easy credit has destroyed the chances of any recovery of the American economy. People expected the US government bailouts to the private banking firms to eventually rescue the economy, but all the bailouts did was to make these criminals even richer, and to fleece the public by putting them further into more un-payable debt.

Debt is a form of Usury, and the entire existing monetary system is based on debt. As long as a nation refuses to take control of its own monetary supply away from criminal bankers, there will be no chance of removing the crushing debt from the populace and having a real economic recovery.

Wake up, America! You have been lied to about so called "economic recovery" long enough!

More to come


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