There is no way to avoid the final collapse of a boom brought about by credit expansion. Only alternative is whether the crisis will come sooner as a result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe usable currency "
Ludwig von Mises
U.S. government debt 1980-2019
The past week gave a funny example of the difference between a support group of corporations in the face of meynstrimovskih media false greeters from Wall Street and the critically-minded analysts — such as «Zero Hedge», Mike and Joe Shedlok Hassman. That which passes for journalism on CNBC and in the rest of the print and television media — it's not even funny. All of America is based on feelings. Do we feel confident? Do we feel optimistic? We look whether we are optimistic about the future? America has turned into one giant fraudulent enterprise. The government elite spend their time PR stories about the "recovery" and the manipulation of public opinion — to make people feel confident and spend money. Facts contradict this storyline. This is the version for suckers. The powers that be know what is best for us, and we will say, and when to do it.
False tale — a hit last week was a sharp increase in the number of new jobs. This fantastic news used by six banks, which are responsible for 80% of transactions in the stock market to raise the NASDAQ to 11-year high, and the Dow Jones — to 4-year-old. Complaisant corporate media has played a role, the heyday of optimistic headlines. All the hype has been started to get Joe the Plumber get one of their 15 credit cards and buy a new 72-inch 3D HD — TV to watch the Super Bowl, which will take place this weekend. When you look as a "talking head" on CNBC interviews dark businessman on Wall Street, keep in mind that 1% of the entire interview says 0.1% of the true state of affairs.
What you probably will not hear from the MSM — that the NASDAQ is still down 42% from its peak in 2000, when it reached 5048. None of these people with "mortified by the brain" on CNBC does not have, chtoS & P 500 is trading at the same level he achieved 8 April 1999 zero or negative returns over the 12 years of 13 — no matter when you want to sell the story . On Friday, the hyperbole, which was used by the media mouthpieces, disappeared from the charts, leading to an epic holivarov between critical thinking and do not reflect the blogosphere "professionals", repeating the authorized government propaganda. Recriminations flew in the wrong interpretation. I think the manifestation of hysteria that someone can seriously discuss the accuracy of the data BLS (Bureau of Lies and Cover-ups) (Bureau of Lies & Swindles — Bureau of Labor Employment — Approx. the translator.)
Robots of the agency official propaganda relentlessly manipulate the data, as long as do not get the desired results. They use the model of birth / death, to create jobs out of thin air, and then updates the phantom jobs, removing them from the press release on Friday evening. They create a new category of Americans who allegedly do not actually unemployed. They use several models to make the seasonal adjustment. Then they make a massive one-time adjustment according to the census. In fact, it can be concluded that all, as reported in the monthly BLS reports — it's bullshit, combined to provide the most optimistic view of the surrounding. The government prefers the unemployment rate 8.3% — this is a cruel mockery, and the MSM dutifully feeds this crap zombie public. If the ruling elite had told the truth, society would understand that we are in the midst of the Great Depression — 2.
The unemployment rate — official (red — U3, gray — U6), in the alternative estimates (blue)
The unemployment rate during the Great Depression reached 25%. Without the "adjustments" WLAN real unemployment in this country is 23%. The injection of optimism and packing data in such a way as to mislead the public, can not change the facts:
· Americans of working age, there are 242 million. Are only 142 million Americans. According questionable mathematics such as analysts CNBC, which means that 100 million working age Americans (41.5%) did not work. But do not worry, the BLS says the unemployment rate is only 8.3%. The cases in this country are going so smoothly that the remaining 33.2% relax, enjoying the good life.
· The ratio of the level of employment of the economically active population to the total population has reached 30-year low. The number of Americans who, presumably, are not included in the labor force — is on the record for all time mark of 87.9 million. Corporate sages MSM, like Steve Lismanu, explain this decline that begins the retirement of the "baby boomers." Wonderful version, but the evidence suggests that the elderly so desperate for cash that their participation in the labor market has increased dramatically.
Levels of participation in the labor market (employed + standing registered as unemployed)
Red — those aged 16-54 years, Blue — 55 years and older)
The data that are presented on a daily basis by the government, can not withstand even a hint of a reality check. The labor force increased from the year 2000 to 30 million. The number of employees increased by only 4.7 million. Critical thinking person would conclude that the unemployment rate should be much higher than 8.3%, of which we speak. But the government is lying, that the labor market has increased over the last 11 years, only 11.8 million. It has the audacity to claim that 17.9 million Americans have simply decided to leave the job.
The economy in 2000, has been on the rise. She is now in recession. Is it not a greater number of people in need of work, when times get harder? Version that the Baby Boomers are retiring, is a lie. The fact that 46 million (15% of the population) live on food stamps — evidence lies WLAN. If you look at history, it will prove how bad smell these numbers:
2000-20011 years. — 17.9 million increase in the number of those who are not part of the officially recognized as the unemployed people of working age
1990 — numbers are increased by 5 million;
1980 — 1.7 million.
Category of persons of working age who are not recognized officially unemployed, used to hide how really bad things to employment in this country. They conclude that 17 million of the 38 million Americans aged 16 to 24 years old are not among the able-bodied. This is complete nonsense. Ever since I was 16 years old — I was working. Everyone I know — working. I worked while studying in high school and college. The fact that 45% of these people do not want to work — a lie. If you examine the data on them, you can see just how badly in this country the employment situation:
74% of persons aged 16-19 years — the unemployed;
85% of blacks 16-19 years — the unemployed;
31% of black men 25-54 years old — the unemployed;
40% of persons aged 20-24 years — the unemployed;
22% of men aged 25-29 years — the unemployed;
22% of men 50-54 years old — the unemployed
According to the BLS, 11% of men 25-54 years do not go to the employed or officially recognized unemployed.
Moreover, the real unemployment rate is at the level of the Depression, but also to those who have jobs, we have to get worse and worse. Salary last year grew by less than 2%, year on year it grew by 3% over the past 4 years. If we believe our friends from BSL, the inflation rate for the previous year increased by 3%. It's almost as funny as the unemployment rate. Anyone living in the real world — as opposed to the model of the world according to BLS — knows that the prices of essential commodities have risen more than 10%. The reality is that if we measure Consumer price index the same method as it was measured in 1980 at the beginning of our great debt of inflation, it will exceed 10% — 3% against counterfeit, which reports MSM do not think the public taking it for granted. Poor guy, getting an average salary of 25 thousand dollars and received an increase of 2%, thinks that he can now spend an extra $ 500, when in fact he lost two thousand dollars to pay. Established by the Federal Reserve Inflation is an insidious hidden tax that destroys 99%, while 1% enriched.
Average hourly earnings for all employees (red) and the index of consumer prices
While debt do us part
"Madness — doing the same thing over and over again and hope for a different result "
The story about the restoration, the presented policy-oligarchs, bankers and the media coined in order to allow consumers to feel better. This is a key part of their plan. Any honest appraisal of the financial disaster that broke out in 2008, the year leads to the conclusion that it was caused by the fact that the opportunity to get into too much debt being peddled too many people who are not able to return the debts, too few banks have too much power, Federal system kept rates too low for too long, and the same Federal Reserve was doing too little to regulate the "too big to fall" mega-banks on Wall Street. I imagine that would Albert Eystein of "solutions" debt problems, which are sounded. Would consider it crazy that the whole credit market debt actually rose to a record 52.8 trillion, an additional 533 billion dollars surpassing the highest mark achieved in 2008? Our leaders have added 6.1 trillion dollars to our national debt over the past 4 years — an increase of only 66%! This unprecedented level of borrowings, of course, did not bring benefits to the American people, as real GDP grew by $ 96 billion, or 0.7% over the past four years.
The level of total credit debt rose from 28 in 2001 trln.dollarov Up to 52 trln.dollarov in 2011,
gray marked periods of recession
Einstein did not consider whether the madness that the ruling elite maintains four largest banks, which were the main culprits in the creation of a global financial meltdown, to actually get even more? The largest U.S. banks now control 72% of all deposits in the country against 68.5% in 2008, "Too big to fall" have now become "more big to fall." Rather than eliminate bad debt, closing insolvent banks selling good assets healthy banks, firing managers and shareholders vyshvyrivaniya and bonds — foolish enough to invest in these very badly managed "casino", the powers that be chose to protect his friends, constituents. 01%, and throw under the wheels of the other 99%. their fellow citizens.
Deposits Top 4 U.S. banks compared to the top 20 credit unions, together
Ben Bernanke, along with Tim Geithner and their masters on Wall Street has practiced a policy of zero rates, designed to enrich the banks on Wall Street, attracting investors to the stock market and encouraging Americans to borrow and spend, as it was in 2005. Instead of recognizing that our economy for decades is perverse in that the driving force for over-consumption and debt used to reset the Federal System madly encourages banks and consumers again and again to do the same. We know that Bernanke has stolen $ 450 billion of interest income to the following contributors and pensioners, and handed it to Jamie Dimon, Vikram Pandit, Lloyd Blankfein and the rest of the clique of Wall Street. "The strict economy is bad '- this daily interpret domestic politics, the leaders of corporations, billionaires on Wall Street and scientists muzhiMSM. Austerity is defined as "long-term commitment to self-restraint." Have you seen a scene of pandemonium on Black Friday? Americans can do nothing but what self-restraint, not to mention the long-term self-restraint, and the hosts of our country will not allow this. One look at the numbers of our GDP confirms that our country is in extravagance. In 2007, before the collapse, consumer spending accounted for 69.7% of GDP. Today, consumer spending accounts for 71% of GDP, but on investment 12.7% of GDP. In the old days, in 1979, to the epic debt bubble, when the financial sector is not the rules of the country, consumer spending accounted for 62% of GDP and 19% on the investment. What a crazy idea! Do you spend less than you earn and save the rest. Then you invest the money in something that can bring a reasonable return (0.15% in a money market account is not quite reasonable).
As pointed out by Ludwig von Mises, the artificial boom created by credit expansion, eventually collapses. We had a chance in 2008-2009 to voluntarily renounce stimulated by Wall Street credit expansion and allow our country to recover. The pain and suffering would be great, especially for the 1% who owns most of the stock, bond and debt markets in the ignorant masses. As can be seen from the graph below, the leadership needed to duty in terms of every working American's growing at a rapid pace, so we could work them (managers) power and wealth. The slight reduction in debt from 2009 to 2011 is unacceptable. The powers that be will not be satisfied until then, until you reach the final collapse of the currency of the von Mises.
Aggregate real debt for every American employed in the civilian sector (for the dollar in August 2011)
Plan Bernanke and his puppet masters on Wall Street is actually very simple. In fact, it is — a breach of trust. Breach of trust (it is cheating, deception, "kidalovo" scam "vparivaniya" scam, a criminal scheme or fraud) — is an attempt to trick a group of people getting their trust. People who have taken these tricks are called rogues, swindlers or scammers. Rascal often works with one or more accomplices, the so-called "decoy ducks" who carry out actions on the victim's involvement in a fraudulent plan. In a typical breach of trust victim is led to believe that it will be able to win money or some other prize by doing some task. Accomplices may pretend to random passers-by, who have benefited by doing such a job. Bernanke and the 1% — are swindlers. They are trying to fool 99% by convincing them that their "solutions" these 99% will win. "Decoy", acting as accomplices — it's Wall Street bankers who bought economists, politicians, journalists and experts from meynstrimnyh media. You — the victim. This fraud has many aspects, but it is based on easy to borrow more freely floating low-rate loan. The fraudster has reduced interest rates on loans to zero in favor of their puppeteers. Accomplices on Wall Street victims tempting offer financing for expensive purchases such as cars, furniture and electronics. As the victim deeper into debt, "stool pigeons" Wall Street reports a record earnings ($ 26 billion of loan losses in accordance with accounting entries), rising consumer spending and GDP goes up. Accomplices of the mainstream media dutifully reported improvements in the economic situation. Accomplices of the government manipulate the data on employment and inflation and the state of the employment growth in the absence of inflation. It is assumed that the victim will feel confident in the future and spend more money borrowed. Psychopaths who rule this country, called it all a steady recovery.
All you have to do — is open daily to see that fraud in all its glory. Last week the MSM reported about another surge in car sales. Guys, the producers of our favorite American cars back! Car sales now exceed $ 14 million per year! It's way out of the depths of the recession in 2009, when the annual rate of sales was below 10 million. We have reached a level of "clunkers for cash"And have nowhere else to go but up. The plot is based on the fact that Obama was right to save "General Motors" and "Chrysler" from your tax dollars. Now they make great cars (with the exception of a breakthrough "Chevrolet Volt") and employ millions of Americans. This is a true American success story returns. Clint Eastwood is obliged to shoot a promotional video on the subject.
The level of vehicle sales in the U.S. (blue marked periods of recession)
Only with this plot there is one small problem. This is — a lie. Remember GMAC (acceptance corporation "General Motors")? You saved them from bankruptcy when they went bad deal with all of their "subprime" auto and mortgage loans. They have now put forward a completely new business plan. Change the name to «Ally Bank» and start handing out subprime auto loans — as you can. You'll be happy to know that according to the «Experian» 45% of all car loans are now issued issued unreliable borrowers. That there could possibly go wrong? In addition, the average maturity of loans rose to nearly 6 years. Executives «Ally Financial» say that their subprime auto loans have become "very attractive" because the income on loans more than cover the losses from a possible loan defaults by risky borrowers. I am sure that they have everything completely under control. Gina Proyya, a company spokeswoman, said the company "puts more emphasis on the upper part of the sub-prime spectrum" and gives loans only to those who can prove that it is able to pay. I can not believe that the company is limited to the issuance of its loans only to those people who, in their opinion, may be paid. I wonder what Obama does not condemn them for lending to such restrictions. If you open the newspaper section about cars, you can see that loans are available with no down payment and a zero percent for 7 years down the line most models. But why buy when you can rent a luxury car for $ 300 a month? It's amazing how many cars you can "sell" when the "problem" U.S. borrowers can rent them for 7 years. Interesting — not that not explain what I see dozens of luxury cars valued at 40 thousand dollars parked in front of dilapidated shacks at the cost of 25 thousand dollars every day when I drive to work through West Philadelphia? In addition, it seems that the "Big Three" "sells" very few cars in excess of its dealers in January, according to data presented on the site «Zero Hedge». No need to leave that certain facts spoil optimistic picture.
Ford — Inventories at the end of January with delivery within 86 days (492 thousand), as compared with delivery within 60 days (466 million) at end-December
Chrysler — Delivery within 83 days of the end of January (349 thousand), versus 64 days. On December 31 (362 thousand)
General Motors — Inventories at the end of January, with delivery within 89 days (619 thousand), as compared with delivery within 67 days (583 thousand) at December 31,
Facts prove that the distribution of billions of easy credit as create the illusion of recovery. Non-payment of non-renewable consumer loans (auto loans and student loans) has now reached unprecedented proportions in 1.7 trillion dollars. Even though 2009 was a bad debt written off billions, the total amount of defaults on loans increased by $ 100 billion. This is similar to the austerity sweeping the nation? The federal government gives out student loans like candy, as hundreds of thousands of students receive useless degree from commercial factories for forging diplomas, such as the University of Phoenix and the like. Hold the students engaged in educational institutions, the government can not include them in the category of persons who are not accounted for in the labor market. To remain second to none, our friends from GE Capital, WellsFargo and other institutions are "too big to fall", on the other hand are taking active part in the scam with a revolving credit facility. Recently, I caught the eye of ads largest furniture Retailers, «Ashley Furniture», offering a loan with 0% deposit and no payments for 7 years. I do not know about you, but my kids breaking open sofa for less than 7 years. Does not seem to «Wells Fargo Credit» was too worried. Critical thinking person might wonder, with what possibilities «Wells Fargo» going to make money by offering such conditions? But there is a hint. Ben Bernanke lends «Wells Fargo» money at 0%, so that they can continue indefinitely fraud on trust. Those crazy bankers actually believe that they can give a boost to this moribund economy mired in debt, handing out billions of new loans to people who are unable to return them. Einstein would have had fun.
A couple of weeks ago, a group McKinsey released a report analyzing the debt of American households and the optimistic conclusion that she can return to the rational path by 2013 year. Mike Shedlok indicates that "rationality" — in the eyes of the beholder. It seems that the wise men of McKinsey did not understand the concept of a return to normal. First of all, their analysis is invalid because the real net personal income is actually declining, and the basic scam works of Ben Bernanke and the Americans are now increasing their debt by households. The thin blue line turned back the clock — ever since they started collecting data. Second, as aptly observed Mish, rational level of household debt — it is in fact the level preceding the credit bubble that began to swell in the early 1980s. This duty level about 70% of disposable personal income, unlike the current level of 100%.
The consequences of the return of household debt to their long-term average value would be disastrous for the 1%. Began to crumble debt kingdom. Their power and wealth might flow. That is why they so vitally important to create the illusion of recovery. Their fraud on trust is built on the ever-increasing flow of credit expansion. It will not work. It is impossible to avoid complete financial collapse of the boom, which created exclusively by credit expansion. Those who are in power will never voluntarily give up his great rogue plundering the wealth of the country, so the final result will be an economic disaster. They will continue to use propaganda, printing presses and half-truths to further their hidden agenda. But the one who will consider the facts that come to the logical conclusion that we sell great lie.
"Half the Truth — often a great lie. " (Benjamin Franklin).