U6 Unemployment = DOW/Economic Reality Disconnect...
Want a reality check?
Take two minutes to review this page. It's the governments
own BLS web site. This is reality. Every single measurement
of unemployment from U1 through U6 is accelerating.
bls.gov
U6, which is the most comprehensive and complete measurement
of unemployment, is now 16.4%.
If you use the old BLS formula and take out the voodoo for
"birth & death rate" adjustments, the real unemployment rate
in America is now over 20%.
Yes, 20%.
One in five Americans is out of work, has quit looking for
a job, or is significantly underemployed, and unable to
find a job at pay levels similar to the job they lost.
Did you hear one of the guests on CNBC this morning say that
in the Chicago area, 65% of college grads have NOT received
job offers?
Mortgage, credit card, and consumer loan delinquencies and
defaults are still rising.
The US consumer is in the process of deleveraging from
historic levels of debt.
That same consumer with a record debt load, and accelerating
unemployment, also has a "negative" savings rate. The consumer
has no nest egg to fall back on.
With the collapse of home prices and the tightening of credit,
using your home as an ATM machine (which fueled the post 911
boom) is no longer an option.
Banks have cut 50% of existing consumer credit lines.
2/3rds of US GDP comes from consumer spending. And with
those facts above - where is consumer spending going to
come from?
Retail analysts Dana Telsey and Howard Davidowitz aleady
told you - it ain't there, and it ain't coming back any
time soon...
Message 25670443
Banks have cut more small business and consumer loans, than
they have made. I've posted 3-4 times where local banks
are telling the public that the FDIC and bank regulators
are telling them to cut off credit, and call in loans,
while they're telling the public they're stimulating
lending.
The Fed, Treasury, and Obama administration are telling the
public one thing, and the banks another...
Message 25510342
Both Nouriel Roubini and Ben Bernanke just commented on
the weak capex corporate spending, and that this was just
as season inventory rebuild, and both questioned where
sustainable demand would come from?
Well it isn't coming from consumer, or corporate spending,
and the entire world is telling us - it can't come from
any more government spending. So where does that put us
people?
What's reality?
Foreclosures that were put in forbearance by the moratorium,
are about to re-enter the system.
Prime and Jumbo loans are now starting to rollover.
The commercial real estate bubble has now popped, and is
just now starting to implode. There is a mountain of
CRE debt that is due to roll over and will not, and can
not be refinanced.
And what will be "THE" story for 2010, the collapse of tax
revenue, is taking down both state and local governments.
I'll repeat what I've been saying for months...
This rally in the markets was "given" to the people, at
the height of all the tea party & end the Fed protests,
to cap that dissent, and to distract the public from the
non-stop flood of legislation accelerating the final build
out of the police state, and the non-stop assault on
everything from Habeus Corpus to Posse Comitatus, and
1st and 2nd Ammendment rights.
Sites like zerohedge.com have done a great job documenting
the prop job being done by the PPT thru Goldman & JP Morgan's
blatant intervention in the futures markets.
One day, the Fed & Treasury will have their hands full with
the bond market & having to monetize Treasuries directly
into warnings from the Chinese and the rest of the world
not to.
When that day arrives, they will no longer be able to keep
the DOW and S&P levitated.
To anyone with a clue, it should now be clear that the
Fed & the Treasury do not have control of the banking system,
or the economy.
Picture the US economy and financial markets as a patient
who was just in a motorcycle wreck and got run over by a
truck.
Now you can wash all the blood off the patient, and put
clean white bandages all over him... and he may look okay
on the outside, but that won't keep him from dying from
internal injuries.
The US economy and financial markets are dying of internal
injuries. All the Fed & the Treasury have done is wash off
all the blood and applied fresh bandages.
But, that doesn't change the reality that the patient is terminal.
I wrote about this back in October. Remember the World Bank/
IMF's FSAP so called "X-Ray" audit of the entire US financial
system?
Message 25017279
sliderontheblack.com
Bush fought it for years, and only gave in on one stipulation,
that the results could not be released until he left office.
Why do you think the G-20 is calling for the IMF to be raised
to the position of Global Central Bank?
Why do you think the Chinese and Russians are calling for
a new reserve currency?
Why do you think Hank Paulson threatened Congress with
Martial Law and extorted Congress out of $800 billion,
and used the AIG bailout to launder the money to Goldman,
foreign banks, and offshore hedge funds?
Why do you think Hank Paulson demanded legal immunity?
Do ya' think perhaps that was a big red flag?
Why are the banksters stealing everything that isn't nailed
down, and looting the US Treasury just as fast as they can?
Because the final collapse is when, not if.
And they should know, because they orchestrated it - by design.
There's only two numbers you need to know. Real unemployment
is one, and what income tax rates are going to be required
in the very near future, to pay just the interest on our
debt, and the unfunded liabilities of social security, medicare
and medicaid....
Message 25664232
People, please wake up.
We have a 20% real unemployment rate it's still rising.
We have collapsing tax revenue at both the Federal, State,
and local levels of government.
The crisis you see in California today, is going to be
epidemic in 2010.
Read what the non-partisan CBO has to say about our deficits.
---------------------------------------------------------------
According to the CBO:
heritage.org
Tax rates would need to be raised by "substantial" amounts to
finance projected spending. Specifically, "the tax rate for
the lowest bracket would have to be increased from 10 percent
to 25 percent; the tax rate on incomes in the current 25
percent bracket would have to be increased to 63 percent; and
the tax rate of the highest bracket would have to be raised
from 35 percent to 88 percent.
The top corporate income tax rate would also increase from
35 percent to 88 percent."[4]
"Such tax rates would significantly reduce economic activity
and would create serious problems with tax avoidance and tax
evasion. Revenues would probably fall significantly short of
the amount needed to finance the growth of spending;
therefore, tax rates at such levels would probably not be
economically feasible."[5]
---------------------------------------------------------------
The CBO just spelled out the "End Game" in plain english
there folks.
We will need a doubling to tripling in Federal Income
Tax rates to a 63% rate for the middle class, an 88%
top rate, along with a corporate tax rate of 88%.
The CBO goes on to say - that these rates would collapse the
economy and would not be economically feasible.
In plain english, the CBO just said: There's no way out.
TILT!
Game Over.
The World Bank/IMF knows it.
The G-20 knows it.
China and Russia know it.
And the bankster-gangsters know it.
That's why they're looting the system as fast as they can,
rapidly building a police state, and now turning the guns
that were supposed to be aimed at Islamic Terrorists in a War
in Terror, inward on the US people that they know are going
to revolt, and riot - when the final day of reckoning arrives.
And arrive it will.
America has a very small window of time in which it must both
wake up and rise up.
Sadly, I see little chance of either happening in time.
SOTB |
