Propaganda

Economic Fiction

Regular readers of Survival And Prosperity may have noticed I didn’t blog much last week. Truth be told, I was reading and watching a lot of blog-related material that I want to address in the coming weeks. I didn’t pay as close attention to the news as I would a “normal” week. But it was hard not to notice all the “rosy” talk about the U.S. economy. Sure, some decent economic reports have come out. Problem is, I don’t have much faith in them as I saw some years back how they can- and subsequently have been- manipulated to be more positive than if the numbers hadn’t been fudged.

As far as I’m concerned, the United States economy and larger financial system are still in big trouble at the end of 2013. The so-called “recovery”?- primarily the result of massive amounts of “stimulus” and new debt that the Federal Reserve and Washington chose to employ to paper-over an economic disaster that reared its ugly head in 2008.

Come to think of it, the “recovery” reminds me a lot of that scene from the 1994 film Pulp Fiction, where Uma Thurman’s character receives a healthy dose of adrenaline after she OD’s:


(Warning: Squeamish readers may not want to watch)
YouTube Video

Just substitute the economy for Ms. Thurman and massive amounts of “stimulus” for the adrenaline, and you might get an idea of what I’m talking about.

Euro Pacific Capital’s Peter Schiff remarked some time ago about all the stimulus going into the economy. He basically pointed out that since there’s been so much of it, it’s only reasonable to expect the recipient would appear to be recovering. Perhaps even full of vitality. However, remove the stimulus and regression eventually sets in.

And that’s where I think we’re heading.

Now, I’m not just talking about a recession. It’s a little bit more complicated.

As I mentioned before, not only has there been a tremendous amount of stimulus being deployed, but trillions and trillions of dollars worth of new debt accrued as well. The United States was a financial “house of cards” before. All this new debt heaped on top of it has made it even more unstable. Worse- Washington has demonstrated time and time again they have no serious intention of putting a halt to the nonsense.

Therefore, not only am I expecting a U.S. recession, but a financial crash as well.

Regrettably, I just can’t see any way around it at this point in time.

I don’t know how much time we have left before the nation hits the proverbial brick wall, but our “financial reckoning day” is coming.

Washington and the Fed got lucky when they were able to kick the can down the road back in 2008. Eventually, that luck will run out.

Here’s hoping as many Americans as possible are prepared for that inevitable occasion.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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D.C. Navy Yard Shootings Suspect African-American Male Entering With Only A Shotgun?

I only recently heard about the tragic shootings that took place at the Washington, D.C., Navy Yard earlier today. While information about the incident is still coming in- and a lot of nonsense is already being spouted-off (“declare the NRA a terrorist organization!”)- I read the following on the website of NBC4 Washington, D.C. a short time ago:

At least 12 people are dead after a shooting Monday morning in a heavily secured building at the D.C. Navy Yard, and authorities now say they have identified the gunman.

That gunman, 34-year-old Aaron Alexis of Fort Worth, Texas, is among the 12 dead. Officials said he recently began working as a civilian contractor.

On the home page of the NBC affiliate, a young, African-American male sporting a bald/shaved head is shown superimposed on a banner which reads:

“Gunman ID’d in Navy Yard Shooting That Killed 13″

Hmm. A number of people were probably real disappointed that it wasn’t a “creepy cracker” that was shown.

In addition, there’s this:

Survellance video shows the gunman entered the building at the Naval Sea Systems Command Headquarters, at 1336 Isaac Hull Ave., with a shotgun, News4′s Jackie Bensen reported.

He shot the security guard in the head, killing him. The shooter then continued through the building, and seemed to target his victims, who were mostly on the third and fourth floors.

D.C.’s Metropolitan Police Department and several other law enforcement agencies responded, Bensen said. During that response, a MPD officer was shot in the leg.

The gunman was then shot by a FBI hostage response team, Bensen said.

According to what witnesses are telling investigators, by the time the shootings ended, the gunman was seen with a semiautomatic 9 mm pistol and an AR-15 assault rifle. Authorities are investigating whether the gunman took the security guard’s service weapon – likely a 9 mm pistol – and hid in wait for the first responding D.C. police officers, who would be specially armed with AR-15s.

(Editor’s note: Italics added for emphasis)

An African-American male suspect possibly armed with just a shotgun initially?

No “assault weapon” or “scary” handgun?

(Editor’s note: Some have already suggested this account of the incident may get “sanitized” real quick once the mainstream media get their marching orders from the powers-that-be)

Something tells me the hopes of the anti-Second Amendment crowd in furthering their agenda with the Navy Yard shootings will fade pretty fast if what NBC4 Washington is reporting this afternoon is found to be true.

In the meantime, my prayers go out to all those affected by this violence.

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

Source:

“Gunman ID’d in D.C. Navy Yard Shooting That Killed 13.” NBC Washington, D.C. 16 Sep. 2013. (http://www.nbcwashington.com/news/local/Confirmed-Shooter-at-Navy-Yard-One-Person-Shot-223897891.html). 16 Sep. 2013.

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Peter Schiff Calls ‘New’ GDP ‘Propaganda’

“GDP Increased at 1.7 Percent Annual Rate, Higher Than Expectations”
-ABC News website, July 31, 2013

“US Economy: GDP Surprises, And Hiring Rises In July”
-NPR website, Jul 31, 2013

“Economy expands at brisk pace in 2nd quarter, defying gloom”
-NBC News website, July 31, 2013

I wouldn’t have expected anything less from NBC these days with their headline about the latest “National Income and Product Accounts, Gross Domestic Product, second quarter 2013 (advance estimate)” report.

In other words, the GDP report that was released on July 31.

From the U.S. Department of Commerce, Bureau of Economic Analysis:

Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 1.7 percent in the second quarter of 2013 (that is, from the first quarter to the second quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent (revised).

2nd quarter GDP grew at an annual rate of 1.7 percent. Check.

1st quarter GDP revised down to 1.1 percent. Check.

(Editor’s note: Is it me, or is GDP routinely getting revised downward?)

But what’s this about a “Comprehensive Revision: 1929 through 1st quarter 2013” I saw in the report headline?

A little farther down the page there’s this:

Comprehensive Revision of the National Income and Product Accounts

The estimates released today reflect the results of the 14th comprehensive (or benchmark) revision of the national income and product accounts (NIPAs) in conjunction with the second quarter 2013 “advance” estimate. More information on the revision is available on BEA’s Web site at www.bea.gov/gdp-revisions.

(Editor’s note: Italics added for emphasis)

A “revision.” I’d heard talk about this revision to how U.S. gross domestic product would be calculated starting in the 2nd quarter and going forward.

Not all of it positive.

Enter Peter Schiff. The “crash prophet” spent a good deal of time discussing this revision in his latest entry on his YouTube video blog, The Schiff Report. The CEO and Chief Global Strategist of Euro Pacific Capital said last Friday:

If you’re going to believe in GDP, what we have now- what the government is now reporting- is not GDP. It’s something brand new that the government just made up. But they’re going to pretend it’s GDP… they have changed the methodology of calculating GDP, to produce a bigger number. Why does the government want a bigger number? To make the economy look like it’s bigger. Therefore, if you take a look at all of our debt, relative to our GDP, it looks like the debt is now a smaller portion of the GDP, because we’ve magically made the GDP bigger.

Also, I think there’s another reason. The entertainment industry- movies, television, records (Editor’s note: records, Peter?)- all of this intellectual stuff. This is certainly part of the U.S. economy that is growing. And I think what the U.S. government wants to do is magnify the impact on the GDP on the parts that it likes, while minimizing the impact of other parts, like legitimate manufacturing and investment.

So what’s going to happen, is now, I believe, that the GDP, because of these changes, will grow faster than it would have had they not made these changes. It’s kind of like they hedonically-adjusted the GDP.

Schiff added later in the video blog entry:

This is all propaganda. None of this is real. But for some reason, the financial community, academia- they just accept it without question. And if anyone like me points to these figures and says they’re not honest, then “I’m a conspiracy nut.”


“Jobs, GDP, and the Fed: Propaganda Disguised as Information”
YouTube Video

You can read the latest GDP report in its entirety on the BEA website here.

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

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Peter Schiff On Recovery Talk: ‘Would Have Thought People Might Have Learned Something By Now’

In his latest entry on The Schiff Report YouTube video blog, Peter Schiff really called out the economic Pollyannas for their talk of a real, sustainable recovery. Schiff, who correctly-called the U.S. housing crash and “Panic of ’08,” warned in yesterday’s posting:

Don’t confuse rising asset prices with a real recovery. Asset prices are rising because the Fed is artificially-stimulating the economy. And as long as the Fed is artificially-stimulating, we will never have a legitimate recovery. Stocks and real estate prices are rising for the wrong reason. They’re rising for the same reason as they were rising in 2004, 2005, 2006. And we all know how that movie ended. Well this movie is going to have an even worse ending. This is basically the same movie, only we’re making the same mistakes on a grander scale.

And it’s amazing for me to watch it, as all the people who were so clueless back in ’04, ’05, and ’06, who said that “no one could have seen this coming.” In the aftermath of the crisis in 2008 and 2009, these are the same guys that are oblivious today. And people like me who did see it coming, we’re the ones that are warning about the next crisis. And our warnings are being received with the same reaction as they were the last time around. You would have thought people might have learned something by now.

Despite all the evidence that the economic recovery is just a story- it’s wishful thinking at best, and maybe, more like propaganda- the market continues to march on.

The CEO/Chief Global Strategist of Euro Pacific Capital revealed that he’s been buying gold. Schiff explained:

The only reason we’re getting the rally in the stock and bond market, the only reason it’s not “the end of the world,” is because the Federal Reserve and other central banks are doing precisely what I feared they would do, which is exactly why I’ve been buying gold. So the reasons to buy gold have never been greater. And I think this new-found pessimism is going to create the backdrop- the wall of worry- that can launch the market into new highs.


“Stocks rise as recovery fantasy fades, oil breaks out, potential bottom in gold & silver”
YouTube Video

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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Seen On The Streets, Part 6

Panhandlers.

Being from Chicago, I should be used to them. In fact, a couple of years ago, I was getting off the Stevenson Expressway on the exit ramp to Cicero Avenue on the South Side when my car was swarmed by a number of them.

Although these weren’t your typical panhandlers. It was the Squeegee Army.

The incident went down a lot like this (ends at 55:04).

And yes, I did drive away singing “I can dig it, he can dig it, she can dig it, we can dig it, they can dig it, you can dig it, oh let’s dig it, can you dig it baby” like Isaac Hayes.

Anyway, the panhandlers I’m seeing these days aren’t the ones I’ve typically encountered over the years.

They’re young (late teens/twenties). They don’t appear at first glance to have any physical handicap that would prevent them from working. And they’re panhandling at intersections where they didn’t used to before.

First, it was the young girl at Cumberland and Higgins on the Northwest Side by Park Ridge. Then, it was the dude at the corner of Northwest Highway and Devon in the Edison Park neighborhood on the Northwest Side. I only saw him once, and I kind of suspect a Chicago police officer (who probably resides in the area with his family) gave him a mouthful, kindly encouraging him to move his ass along.

And just this Tuesday, at the intersection of North and Harlem on the West Side by Elmwood Park, Oak Park, and River Forest, some young man was walking through traffic begging for money. He was also wearing desert camo pants. Maybe he was trying to get the message across to motorists that he was a vet?

Anyway, the numbers of panhandlers seem to be growing these days around the Chicagoland area. Not exactly the picture of a strengthening, sustainable economic recovery the American public is being sold on.

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

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‘Irrational Exuberance’ Back In Housing

There are two real estate reporters I like to follow on a regular basis. CNBC’s Diana Olick and the Chicago Tribune’s Mary Umberger. Why do I like them so much? Because they don’t hold back on reporting the real conditions of the U.S. and Chicago housing markets. I remember them pretty much telling it as it was as the United States went through that housing bubble and subsequent crash- while many of their colleagues assumed the role of self-appointed real estate cheerleaders even as home sales and prices plummeted.

And these days, I’m detecting ‘irrational exuberance’ again in residential real estate. It’s not just me either. Umberger wrote in last weekend’s Sunday edition of the Chicago Tribune:

If the Chicago real estate market were a patient recovering from a lingering, debilitating illness, the doctor might be obliged to set the patient’s over-expectant family straight: Yes, your loved one’s symptoms have eased up, says the MD, but, gee, it’s a little too soon to be training for a marathon.

Those are the kinds of expectations that many Chicago-area homeowners seem to harbor these days, according to Naperville appraiser Alvin “Chip” Wagner, whose recent newsletter to members of the local real estate community sought to address a form of irrational exuberance he’s seeing lately: Yes, the market is better, but that doesn’t necessarily mean your home is gaining in value — in fact, some prices might fall further.

(Editor’s note: Italics added for emphasis)

Umberger interviewed Wagner, who had this to say about Chicagoland homeowners being overly-optimistic. From the piece:

Well, absolutely, the market is improving, but not in the area of pricing, which is what homeowners want to know about. In the third quarter, the average sales price throughout the area was $244,203. One year ago, the average was $258,364. That’s about a 5.5 percent decline.

Yet, I go to people’s houses to do appraisals, and (the homeowners’ expectations are) driven by what they see in the media, and they say to me, the market has picked up, and they expect their house is growing in value. They expect to see a 3 to 5 percent growth. I end up having to tell them, your values aren’t appreciating, they may be flat or even declining.

(Editor’s note: Italics added for emphasis)

I don’t like hearing about the housing market being crummy as much as the next person. But what I do like are people being straight with me. Especially journalists.

“And (the homeowners’ expectations are) driven by what they see in the media.”

See what I mean about those cheerleaders? This is why I like straight-shooting reporters like Olick and Umberger. Wish more of their contemporaries could be like them, instead of barfing up a whole lot of nonsense all over my computer screen.

Source:

Umberger, Mary. “A reality check on housing market.” Chicago Tribune. 30 Nov. 2012. (http://articles.chicagotribune.com/2012-11-30/classified/ct-mre-1202-umberger-housing-20121130_1_number-of-active-listings-naperville-appraiser-sales-price). 7 Dec. 2012.

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Friday, December 7th, 2012 Bubbles, Housing, Mainstream Media, Propaganda No Comments

Peter Schiff Warns Obama Debt Limit Proposal Could Shock America’s Creditors ‘Into Reality’

“The U.S. runs out of federal borrowing authority around the end of the year, but the Obama administration can use special measures to extend borrowing through late February or early March. As part of the fiscal cliff negotiations, Obama has proposed effectively ending the need for Congress to periodically raise the debt limit.”

-Washington Post website, December 5, 2012

Peter Schiff, President and Chief Global Strategist of Euro Pacific Capital, talked about the looming U.S. “fiscal cliff” and a White House proposal to give the President the power to raise the nation’s debt “ceiling” as needed in his December 3 entry on The Schiff Report YouTube video blog. Schiff, who correctly-predicted the bursting of the U.S. housing bubble and 2008 global economic crisis, zeroed in on the debt limit proposal:

This could be a moment where our creditors maybe get shocked into reality. To understand the situation that they are in, that we are in. That there is no limit. That we will borrow money until we can’t do it anymore. That we’re not going to do anything about this crisis. We’re not going to do anything to diffuse this ticking bomb. It’s simply going to go off. And I think our creditors are going to want to put as much distance as they can between themselves and the explosion. They’re going to want to sell dollars. They’re going to want to sell debt denominated in dollars. What is that going to mean? A weaker dollar and higher consumer prices for Americans. It ultimately means higher interest rates for Americans. It means the rug is going to be pulled out from the slowing economy. It means we’re going to go over the Mother of All Fiscal Cliffs, and one that is impossible to avoid.

So, my advice is don’t wait for that. Get out of your dollars. I’ve been saying this for a while, but I think the urgency, and the time with which to do it, is going to be running out. So you get out of your dollars. Get out of any debt denominated in any dollars. Because we’re not going to pay our bills, we’re going to inflate them away, which is the same thing as default. So you don’t want to ride out that inflation. You want to get out of U.S. currency. You want to look at foreign currencies where the governments are much less irresponsible. Look at real money. Look at gold and silver. Look at foreign stocks if they’re suitable that pay dividends. Do whatever you can to get out of Dodge, because just when the government assures you that there’s nothing to worry about, that’s the time where you need to worry the most.


“Debt Ceiling & the Fiscal Cliff”
YouTube Video

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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New Yorkers Eating Out Of Dumpsters After Hurricane Sandy

Trying to get a clear picture of Hurricane Sandy’s effects on New York City and the rest of the East Coast has been challenging.

If I rely on what the mainstream media has been showing and telling Americans, then I might be under the impression that U.S. President Barack Obama is masterfully-coordinating government assets in the clean-up of the region.

How did I get this impression? Well, there’s plenty of photos and video going around the Internet and on TV of the President looking all authoritative and on top of things these past couple of days, whether he’s in the White House “Situation Room” or with government officials from devastated areas.

Maybe he did take away something from the Benghazi terrorist attack (in addition to a guilty conscience, as a growing number of voices suggest he should have).

In fact, I might be convinced the recovery after Hurricane Sandy is doing just fine since New York City Mayor Michael Bloomberg has decided to let the City’s famous marathon take place as planned this coming Sunday.

The thing is, I’m not convinced.

First off, it’s the more-often-than-not liberal-leaning mainstream media we’re talking about here.

As much as I hate to say it, many journalists realize President Obama doesn’t have much of a record to run on, so they’ll do anything they can to paint him and his administration in a positive light in the run-up to Election Day.

Don’t believe me? Observe how many media outlets are wording the increase in the U.S. unemployment rate today.

Thankfully, the rest of America is catching on, albeit slowly.

That Jay Leno. What a funny guy. Even he gets what’s going on.

Whatever happened to watchdog journalism?

Maybe it never existed in the first place.

Second, when I see run-of-the-mill New Yorkers getting food out of a dumpster behind a supermarket, I know for a fact the MSM is not telling the whole story.


“Hungry New Yorkers Eating Out Of Dumpsters After Hurricane Sandy”
YouTube Video

Looting, violence, flooding, power outages, food/water/fuel shortages, now dumpster diving for food. I’ve seen enough now to realize this recovery is not as smooth as it’s being portrayed.

That being said, I know a lot of people are working their butts off trying to help those poor individuals on the East Coast- President Obama and Mayor Bloomberg included. I respect that and thank them for their efforts.

But enough spin already. Show us what the hurdles actually are- one might think listening to MSNBC’s Andrea Mitchell the other day that donated clothes or canned goods aren’t needed for the massive relief effort- so we can get this part of America truly back on its feet again.

And fast, since a nor’easter looks to be headed their way.

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Chicago Police Department Manpower Shortage?

Here in Chicago, residents have been told for some time now there is no manpower shortage in the Chicago Police Department.

According to Hal Dardick and Jeremy Gorner on the Chicago Tribune website this morning, City Hall says the police department has 12,282 officers, including 194 still in training.

The Chicago Fraternal Order of Police points out “hundreds” of officers who are on disability or leave are included in this calculation. And from the Tribune piece:

They point out the number of officers in Chicago has dropped by about 1,000 over the past six years.

The Chicago FOP has argued for the past couple years that the Chicago Police Department should return to its previously budgeted strength of 13,500 officers.

Recently, Mayor Rahm Emanuel presented his 2013 budget to the Chicago City Council. Under “Investing to Enhance Public Safety,” the Mayor called for, “Funding for CPD to hire officers to remain at full strength at all times.”

I blogged back on October 12:

The Chicago Police Department to finally be at “full strength?”

That I’ve got to see.

Why do I suspect the goal posts are going to be moved here?

I was thinking of that 13,500 number when I wrote that.

Apparently, Mayor Emanuel and Superintendent McCarthy were thinking more along the lines of a thousand cops less. Dardick and Gorner added:

Before year’s end, the city plans to hire 263 more officers, city officials said. And the mayor’s proposed 2013 budget calls for hiring an additional 500 officers — four quarterly classes of 125. The goal is to keep the total number of officers at about 12,500.

(Editor’s note: Italics added for emphasis)

“12,500.”

Goal posts moved?

Using this new benchmark, City Hall will probably tell residents the CPD is down only 218 officers.

“Okay, so there’s a tiny manpower shortage.”

However, if there’s one thing I took away from working in public safety administration for a number of years, it’s you don’t ignore what the men and women in the trenches repeatedly tell you. And the street cops seem adamant about there being a manpower shortage in the Chicago Police Department. From the popular Chicago police blog Second City Cop early this morning:

The city is already hiring back between 300 and 500 cops most nights to do “violence reduction.” That by itself shows were shorthanded in the extreme.

“Officially” down 218 officers (not counting “hundreds more” on disability/leave). Hirebacks numbering between 300 and 500 cops “most nights.”

In the interests of public safety, employee well-being, and quite frankly, the city’s floundering reputation lately (“deadliest global city”) and the negative impact it’s having on revenue (“I’m staying away from Chicago because of all the crime” is something I encounter with increasing regularity), it sure sounds to me like Chicago needs more police officers. And fast.

Sources:

Dardick, Hal and Gorner, Jeremy. “Aldermen want Emanuel to hire more cops.” Chicago Tribune. 24 Oct. 2012. (http://articles.chicagotribune.com/2012-10-24/news/ct-met-chicago-police-manpower-1024-20121024_1_police-officers-aldermen-high-crime-areas). 26 Oct. 2012.

SCC. “Hey Look- Side Jobs.” Second City Cop. 26 Oct. 2012. (http://secondcitycop.blogspot.com/2012/10/hey-look-side-jobs.html). 26 Oct. 2012.

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Republican. Democrat. The Economy’s Still Toast.

Boom2Bust.com is an independent financial blog that seeks to warn and educate its readers about the coming U.S. financial crash.

-From “About” page on Survival And Prosperity’s predecessor blog, Boom2Bust.com, which debuted on Memorial Day Weekend 2007

Chicago Mayor Rahm Emanuel has weighed-in on the selection of Congressman Paul Ryan (R-WI) as the running-mate of Mitt Romney in this November’s presidential election. Fran Spielman, Chicago Sun-Times City Hall reporter, wrote on the newspaper’s website this morning:

Emanuel, the former White House chief-of-staff now co-chairing the president’s re-election campaign, took his first shot at Republican presidential hopeful Mitt Romney’s chosen running-mate.

The mayor said he served with Ryan on the House Ways and Means Committee and the House Budget Committee and believes Ryan’s budget-cutting ideas do not chart the right course for the nation or the middle class.

“A lot of independent economists say his budget would lead to a recession,” Emanuel said. “I don’t think a recession is a pro-growth strategy.”

A lot of economists- independent and otherwise- didn’t see the recent housing crash, global economic crisis, and “Great Recession” coming either.

And these days, most economists are predicting a subdued-yet-steady recovery for the U.S. economy with no hint of recession on the horizon.

Based on their prior missed calls, why would anyone believe them?

Now, I’m not writing this post in support of Congressman Ryan and the Republicans’ budget.

Nor do I agree with these “independent economists” Mayor Emanuel speaks of.

However, it’s my view and that of this blog that at this point in the game- where a financial crash has been temporarily averted by drastic monetary/fiscal measures taken by Washington and the Fed circa 2008- when it comes to the U.S. economy and larger financial system it really doesn’t matter which political party controls the reigns now and after November.

We have a spending problem. And both the Republicans and Democrats have clearly demonstrated they are not serious about curtailing it.

But what about the Republican budget-cutting Mayor Emanuel just alluded to above?

Well, what about it?

As the FOX News website pointed out today:

Here are a few little-known facts about Paul Ryan’s supposedly slash-and-burn budget plan.

Government spending increases almost every year over the next decade.
• Tax and other revenue rises year after year.
• The 10-year deficit is still $3 trillion.

The fact that Ryan’s spending plans grow the federal budget over the long term is one that could easily be lost in the political melee underway in the wake of his selection as Mitt Romney’s running mate.

(Editor’s note: Italics added for emphasis)

Not only is our financial “day of reckoning” still on its way, but it will most likely be a lot more painful due to actions (mountains of new debt accrued in the name of stimulus) taken to delay what to me looks inevitable.

And it’s not just this blogger who envisions a truly disturbing outcome. A number of those very few economists and other financial types that correctly-called the housing collapse, the 2008 economic crisis, and the “Great Recession” are once again sounding the alarm.

And once again, most Americans- with assistance gladly provided by the mainstream media and numerous Pollyannas throughout society- marginalize the warnings of these “crash prophets.”

Ignore at your own peril, I say. Or rather, many of their track records say.

Republican. Democrat. The economy’s still toast, from where I stand.

Ignore all the political rhetoric, the propaganda, the intellectual masturbation. A quick look below the surface of our financial system and it becomes readily-apparent the patient is gravely-ill.

Just like that depiction of Uncle Sam on this blog’s “About” page.

Hopefully, I’m wrong about all this.

Chris looks forward to retiring the blog one day, as such an activity will signal his belief that the worst of the crash is over with a sustainable economic recovery now at hand.

-Boom2Bust.com, Memorial Day Weekend 2007

Sources:

Spielman, Fran. “Emanuel: Paul Ryan budget plan could trigger recession.” Chicago Sun-Times. 14 Aug. 2012. (http://www.suntimes.com/14480460-761/emanuel-paul-ryan-budget-plan-could-trigger-recession.html). 14 Aug. 2012.

“Fact Check: Ryan budget plan doesn’t actually slash the budget.” FOX News. 14 Aug. 2012. (http://www.foxnews.com/politics/2012/08/14/fact-check-ryan-budget-plan-doesnt-actually-slash-budget/). 14 Aug. 2012.

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Chicago Tribune Columnist Debunks ‘Assault Weapons’ Myth

It appears at least one member of the Chicago news media isn’t pushing gun control these days. Columnist and editorial writer Steve Chapman wrote on the Chicago Tribune website yesterday:

The assault weapons myth

Gov. Quinn wants to outlaw the sale and possession of “assault weapons,” insisting that “there is no place in Illinois for weapons designed to fire rapidly at human targets at close range.” He doesn’t mention that even if his ban were to pass, there would be plenty of other legal firearms that can be used to fire rapidly at human targets at close range — or long range, for that matter.

Assault weapons are just ordinary guns dressed up to look scary. Quinn is making a mistake to buy the ruse…

It’s kind of weird seeing this from someone so high up the food chain in a major Chicago news outlet. Let’s see. Steve Chapman. Lives in the Chicago suburbs. Attended Harvard. Born in Brady, Texas, and grew up in Midland and Austin.

There you go.

You can read the rest of Chapman’s piece, in which he also challenged a pro-”assault weapons” ban claim by the Reverend Jesse Jackson, on the Tribune website here.

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Dan Rather Blasts The Evening News

Speaking of the “lamestream media,” does anyone get PARADE in their Sunday newspaper? Do any readers even get the Sunday paper anymore? Well, in Walter Scott’s “Personality” section, journalist and former CBS Evening News anchor Dan Rather was asked about the state of nightly newscasts since he retired in 2005. Rather, who’s now managing editor and anchor of the television news magazine Dan Rather Reports on the cable channel HDNet (watched DRR the other week- informative, gritty, very promising from what I saw) told PARADE readers:

A lot of it is too polarized. We’ve become too politically correct and basically too afraid. Journalism at its best has guts.

You mean, it’s not meant to be an opinion platform or propaganda for the journalist/media outlet/powers-that-be?

The brief segment can be read in its entirety on the PARADE website here.

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Tuesday, July 3rd, 2012 Mainstream Media, Propaganda No Comments

Quote For The Week

The private sector is doing fine.

-U.S. President Barack Obama, at a White House press conference last Friday, June 8, 2012

The “official” unemployment rate recently rose to 8.2%.

John Williams of Shadow Government Statistics-fame calculates U.S. unemployment (SGS Alternate) has climbed to around 22.5%.

Yup, the private sector is doing “fine.”

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Quote For The Week

The war on terror is over.

-Unnamed senior State Department official who works on Mideast issues, per Michael Hirsh in an April 23 piece on the website of the weekly Washington insider magazine National Journal

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Peter Schiff: ‘I Think We Have A Real Opportunity Here In The Gold Stocks’

Speaking of gold, last night I watched the April 22, 2012, entry by Peter Schiff, President and Chief Global Strategist of Euro Pacific Capital, on The Schiff Report YouTube video blog. Schiff, who correctly predicted the bursting of the U.S. housing bubble and 2008 economic crisis, talked about a number of things in “Stimulus High Fading, Dollar, Gold, History According to Obama.” But I found his observations about gold stocks- which sure have taken a beating lately- to be most interesting. Schiff, who’s also the CEO of Euro Pacific Precious Metals, told viewers:

All of this optimism about the U.S. economy- even though it’s false- I think has taken a lot of the luster out of gold stocks. In fact, if you look at where gold stocks are, many of the major gold stocks hit 52-week lows this week. But the price of gold didn’t go down at all this week. In fact, it’s still pretty solid. It’s just over $1,600 an ounce. That’s where it was last summer. Of course, when gold got to $1,600 an ounce last summer- it was an all-time record high. Now, it’s the same record, it’s at the same level, it’s a little bit off the highs that it set later on. You know, we got closer to $1,900, $1,850 or so. But, we’re better than $1,600.

But if you look at gold stocks, if you take a look at the index- the New York Stock Exchange gold bugs index, symbol is HUI- that index is off better than 25 percent since last summer. Even though the price of gold hasn’t gone down at all. So you’ve got all of these major gold companies trading at record-low price earnings ratios. In fact, you have all the big players on Wall Street, all the leveraged speculators, are betting on a collapse in the gold price. Why do they think the gold price is going to collapse? Because they’re sure that the U.S. economy is recovering, that the worst is behind us, that there’s therefore no reason to have a safe haven. Maybe they still believe the propaganda from the Fed that there’s no inflation. And so Wall Street is betting on a collapse in gold prices.

I bet they’re wrong. Not only do I think gold prices are not going to collapse- I think they’re going to rise and make new highs. Especially when Wall Street figures out the tenuous nature of this phony recovery and understands that the Fed is going to come to the rescue- now it shouldn’t, but it will- as this recovery falters with more cheap money, more QE. What do they call it? QE3 or something else. It really doesn’t matter, because a rose by any other name smells just as sweet, or in this case, as sour, because I wouldn’t call it a rose- you know what I mean- and it is coming.

So I think that we have a real opportunity here in the gold stocks, because if I’m right, if we don’t get a collapse in the price of gold but we get gold running to new highs, not only does the gold stocks have to rise because gold prices are going up, they have to make up all of the ground that they lost because of an anticipation of a collapse that never occurred.

The rest of the video blog entry is worth watching too.


“Stimulus High Fading, Dollar, Gold, History According to Obama”
YouTube Video

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Christopher E. Hill, Editor
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