With 70% of all jobs created last year being only part-time, total job creation in December a paltry 74,000, manufacturing contracting in China, distressed home sales in 2013 rising to 16.2% from 14.5% in 2012, and income ‘starvation’ seriously reducing purchases by 95% of U.S. consumers; is it any wonder our economic engine continues to sputter along a glide path of decline.
If it wasn’t for the gush of billions flooding banks from the Fed’s Quantitative Easing program a significant amount of which doesn’t make it into underemployed, unemployed, and real income depressed average citizens this smoke-and-mirrors ‘economy’ would have sunk unabated into oblivion. Essentially, bankers flush with cash have been extending more lenient loan terms to less solvent cash strapped borrowers blowing up a new housing bubble that this time will also include more repossessed autos – compliments of our socialist inspired government.
What we’re experiencing is what I’ve been forecasting since 2008: the steady drop of the U.S. middle class economic spending power depressed from years of wage stagnation, loss of good paying jobs, and extreme income inequality resulting from productivity gains and prior years economic prosperity never reaching their empty pockets.
All the economic models and theories have been wrong. It is amazing to hear these voodoo charlatans correct themselves mid-course and join the income inequality bandwagon that they were vociferously classifying not more than 2 months ago as inconsistent with their discredited ‘real world’ dogma.
Not much more needs to be conveyed on this subject that I haven’t already outlined in detail in my previous essays from 2008 to now. I’ve sliced-and-diced this subject along with my economic theories into a fine mush.
I just wanted to elicit more thoughtful analysis of some of the more recent economic data. Hold tight to your gold reserves for contrary to what the sages of the witch doctor club are suggesting this is still the safest store of wealth.