They just won't quit with the economic smoke and mirrors, will they? The truth is that they can't quit with the smoke and mirrors because the economy is so bad and getting worse so fast that, if the people really know about it, there will be a violent revolution resulting in the deaths of the upper class trash. The ugly truth is that we are not and have not been in a recovering economy since this mess started. We have been and still are in a super depression and everything they are telling you is just smoke and mirrors. Let's look at the evidence.
They have admitted that our economy has declined to the point to where our economy is now as small as it was under Jimmuh Carhtuh, 30 years ago, AND is still getting smaller. How is it possible to have an economy which is declining and getting smaller and for the economy to be recovering? A recovering economy means the economy is growing and getting larger, not smaller. A recession or depression is when an economy is getting smaller.
They have admitted that our work force has declined and gotten smaller than it has been since the Great Depression AND is still getting smaller. How is it possible to have an economy where the work force is getting smaller and have a recovering economy? A recovering economy means the economy is getting larger and stronger and is creating more jobs, increasing the size of the work force, and not fewer jobs decreasing the size of the work force. A recession or depression is when an economy is losing jobs and workers so the work force will get smaller.
"But," you ask, "what about the declining unemployment rate?"
Years ago I taught you that is a rigged number which I call the fake unemployment rate because the government doesn't count large numbers of people who want jobs but can't find a job for various reasons, especially the people who give up and quit looking for work. Plus they are not including the workers who have left the US to find work in other countries.
If you were to count all of the different groups of people they counted during the Great Depression, the real unemployment rate would easily be over 30%. There still has not been one month since this mess started in which the number of people finding jobs has equaled the number of people losing jobs, therefore, it is not possible for the real unemployment rate to have gone down even once but their fake unemployment rate magically keeps going down. When our work force has declined as severely as it has, then the real unemployment rate must be at least one third or 33%.
Then there is the "recovering" housing market that has been increasing the value of homes. Approximately 60% of the people doing the buying of those homes have been investors and not people purchasing homes to live in those homes. This is really huge because, any time the number of people purchasing homes as an investment, instead of purchasing those homes to live in them, increases, especially beyond 40%, you have destabilized that market and made it dangerously volatile or erratic.
The thing which stabilized and kept the housing market growing for thousands of years was that most people purchased homes to live in them for decades and even centuries, keeping those homes off the market decreasing supply in relation to demand and driving up the value of all homes. On the other hand, investors will purchase homes and, as soon as possible, sell those homes to get their profits from the investment. This increases the homes on the market and decreases the value of all homes by increasing supply in relation to demand, destabilizing the market.
When more than 50% of the home buyers are using those homes as investments, you have created a very dangerous housing bubble. Using houses as investments turns the housing market into a a commodity market just like the stock market which is extremely volatile or unstable with huge fluctuations in value on a daily basis. When the market value of the homes drops low enough that the true home owners, who stabilize the market, lose all of their equity in their homes, the banks repossess those homes, put the homes on the market driving home values even lower, further destabilizing the market causing greater swings in home values causing increasing numbers of home owners to lose all of their equity and etc. until you have another housing crash.
Remember that, when you have an unemployment rate of 50%, 50% of the workers still have jobs and are making money. What is happening with the current housing market growth is that some of those people who are still making money and don't understand economics see the really low prices of the houses and are believing the crap about a recovering economy so they think it would be a great idea to invest some of their money in houses. When that limited investment money hits its maximum potential, the prices for the housing market will stall, investors will panic and start selling houses to get their money out, and the housing prices will plummet again. This is a common phenomenon in a depression or recession.
I have told you before and I will tell you again that, for this economy to bottom out, the number of people finding jobs MUST equal or exceed the number of people losing jobs for AT LEAST three to six months. For the economy to begin recovering, the number of people finding jobs MUST exceed the number of people losing jobs for AT LEAST three to six months. Then and only then can you have a growing or recovering economy. When the economy and work force continue to decline, especially anywhere near as badly as our economy and work force are declining, you have a severe depression. The Ugly truth is that our economy is dying, not recovering. Anything else is just smoke and mirrors.
With a dying economy, it is very important to....