Friday, July 29, 2011

More on the flailing economy

Why do I post so much about the economy, you may ask?  The reason is in my mind it is the one disaster that (if things continue as they are now) we can be certain WILL come to fruition yet allows for some preparations.  I tend to be a little more "Chicken Little" here on the blog than on my podcast, but when I read things such as the following you can understand why:

QUOTE: "It has long been clear that America's recovery sagged worrisomely in the first half of 2011. This morning's  second-quarter GDP report reveals, however, that despite concern, most observers were too optimistic in their assessment of the economy's strength. Even more distressing, a series of revisions to past figures reveals a recession that was substantially worse than previously understood, which has left America in a bigger hole than imagined."


QUOTE #2: "If nothing else, this awful report helps to solve a number of lingering mysteries concerning the crisis. Arguments that unemployment must be structural, given the failure of projected growth rates to generate new hiring, now look silly. Projected growth rates were simply overstated, and current unemployment is exactly what we'd expect given such a feeble recovery. Those overly optimistic assessments of the likely impact of interventions, from fiscal stimulus to QE, also make much more sense now. Policymakers were fighting a fire far more intense than they recognised."

You see?  We were never truly in a recovery.  It was a misrepresentation by the government aided by their supporters in the media.  Now that it's becoming obvious to everyone, well, why do you think Gold continues to surge in price as people abandon ship?

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