It’s only getting worse. Much worse. Stimulus was a wrong bet, which is leading to fake job creation and phony growth. If stimulus stops, these ‘positive effects’ will eventually mostly disappear, but the added debt, trashed currency and distorted centrally planned economy remain. All of that will have dire future consequences, since it makes it even harder to address the real underlying economic issues. True recovery is only possible with austerity, however painful that may be. See Germany, which had 11 percent unemployment around 2006 and they’re now back on their feet again after budget cuts and structural reforms. Austerity paid off. Big time.
10 year yields dropped nearly 3% IN ONE DAY. Just wait till the bears attack on Monday. While the late to the market bulls fight with everything they have, the bond market is opening up a trap door beneath the bulls feet.
-2.81%
http://www.marketwatch.com/investing/bond/TMUBMUSD10Y?countrycode=BXCharles Hugh Smith: The carrot of self-sustaining recovery will remain out of reach, for the policies presented as the path to recovery preclude the “virtuous cycle” everyone desires.
The enduring myth of the post-2008 era is that central-planning money printing and deficit spending would soon spark a self-sustaining recovery. Once consumers and businesses stepped up their own borrowing and spending, the central bank and state would then pare back money printing and deficit spending, as the increase in private-sector spending would fuel further borrowing and spending, i.e. become self-sustaining.
The reality is the mythical self-sustaining recovery is the carrot dangled in front of a credulous public: though we’re constantly reassured “we’re almost there” (the promised land of self-sustaining recovery), the mythical recovery remains out of reach, no matter how much money is printed or borrowed and blown in fiscal stimulus.
There are several key reasons for this.
http://www.oftwominds.com/blogapr13/proper-use-credit4-13.html
People Not In Labor Force Soar By 663,000 To 90 Million, Labor Force Participation Rate At 1979 Levels
Labor participation rate:
http://www.zerohedge.com/news/2013-04-05/people-not-labor-force-soar-663000-90-million-labor-force-participation-rate-1979-le
Many College Educated Workers Are Getting the Minimum Wage
Almost 300,000 college educated workers are earning the minimum wage.
http://www.cepr.net/index.php/blogs/beat-the-press/wall-street-journal-discovers-ceprs-findings-that-many-college-educated-workers-are-getting-the-minimum-wage
284,000: Number of American college graduates working in minimum-wage jobs in 2012.
The Wall Street Journal this week reported on the troubling trend of college graduates getting stuck in low-skilled jobs, a problem that new research suggests may endure even after the economy improves.
http://blogs.wsj.com/economics/2013/03/30/number-of-the-week-college-grads-in-minimum-wage-jobs/
Bank Of England Admits “Stocks Don’t Reflect Economic Reality”
http://www.zerohedge.com/news/2013-04-05/bank-england-admits-stocks-dont-reflect-economic-reality
zerohedge@zerohedge1 min
And the weather! RT @jpmorganfunds: While we expect positive 2Q13 growth, the economy will be challenged as the sequester takes hold
zerohedge@zerohedge17 s
Consumer credit change in past year: Credit Cards +$6 billion; Student/Car Loans: +$153 billion
zerohedge@zerohedge1 min
Consumer Credit February: Revolving credit: +532 Million; Student and Car Loans: +17.6 Billion
97% Of February Consumer Credit Is Student And Car Loans
http://www.zerohedge.com/news/2013-04-05/97-february-consumer-credit-student-and-car-loans
Americans borrowed more in February to buy cars and attend school, but were more careful with their credit cards.
http://www.moneynews.com/Economy/US-consumer-credit-borrowing/2013/04/05/id/498083
Morici: Obama Major Part of the Problem in Weak Economy
Friday’s jobs data indicate the economy is slowing down, and President Barack Obama is a major part of the problem, said Peter Morici, professor of international business at the University of Maryland.
http://www.moneynews.com/StreetTalk/Morici-Obama-fix-economy/2013/04/05/id/498078
Take out a loan, go into debt so that you can Get a college degree and apply after that highly sought after mcdonald’s cashier position
http://news.yahoo.com/wanted-mcdonalds-cashiers-college-degrees-204344742.html
POVERTY SPIKES TO 1960S LEVEL: Nearly 50 Million Americans Below the Line, Child Hunger Rates ‘Alarmingly High’, Help From Washington Shrinks As Government Struggles With Debt… Does That Mean There’s No Way Out?
http://investmentwatchblog.com/poverty-spikes-to-1960s-level-nearly-50-million-americans-below-the-line-child-hunger-rates-alarmingly-high-help-from-washington-shrinks-as-government-struggles-with-debt-does-that-mean-ther/
The following are 21 statistics about the explosive growth of poverty in America that everyone should know…
1 - According to the U.S. Census Bureau, approximately one out of every six Americans is now living in poverty. The number of Americans living in poverty is now at a level not seen since the 1960s.
2 - When you add in the number of low income Americans it is even more sobering. According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income”.
3 - Today, approximately 20 percent of all children in the United States are living in poverty. Incredibly, a higher percentage of children is living in poverty in America today than was the case back in 1975.
4 - It may be hard to believe, but approximately 57 percent of all children in the United States are currently living in homes that are either considered to be either “low income” or impoverished.
5 - Poverty is the worst in our inner cities. At this point, 29.2 percentof all African-American households with children are dealing with food insecurity.
6 - According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.
7 - The number of children living on $2.00 a day or less in the United States has grown to 2.8 million. That number has increased by 130 percent since 1996.
8 - For the first time ever, more than a million public school students in the United States are homeless. That number has risen by 57 percent since the 2006-2007 school year.
9 - Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.
10 - One university study estimates that child poverty costs the U.S. economy 500 billion dollars each year.
11 - At this point, approximately one out of every three children in the U.S. lives in a home without a father.
12 - Families that have a head of household under the age of 30 have a poverty rate of 37 percent.
13 - Today, there are approximately 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.
14 - About 40 percent of all unemployed workers in America have been out of work for at least half a year.
15 - At this point, one out of every four American workers has a job that pays $10 an hour or less.
16 - There has been an explosion in the number of “working poor” Americans in recent years. Today, about one out of every fourworkers in the United States brings home wages that are at or below the poverty level.
17 - Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. And that does not even include Social Security or Medicare.
18 - An all-time record 47.79 million Americans are now on food stamps. Back when Barack Obama first took office, that number was only sitting at about 32 million.
19 - The number of Americans on food stamps now exceeds the entire population of Spain.
20 - According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
21 - Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, close to one out of every six Americans is on food stamps. Even more shocking is the fact that more than one out of every four children in the United States is enrolled in the food stamp program.
Unfortunately, all of these problems are a result of our long-term economic decline. In a recent article for the New York Times, David Stockman, the former director of the Office of Management and Budget under President Ronald Reagan, did a brilliant job of describing how things have degenerated over the last decade…
http://theeconomiccollapseblog.com/archives/21-statistics-about-the-explosive-growth-of-poverty-in-america-that-everyone-should-know
Pimco’s El-Erian: Global Central Bank Easing May ‘End in Tears’
Central banks around the world continue to jack up their easing programs, but they’re having little success in boosting their economies.
http://www.moneynews.com/FinanceNews/El-Erian-central-bank-easing-Bank-of-Japan/2013/04/05/id/498001
Inflation has arrived.
While the mainstream financial media and government data continue to ignore it, inflation has begun to erupt around the globe. The signs are already clear:
- Civil unrest due to higher costs of living (the Arab Spring, China, Africa, etc.)
- Demands for higher wages (US, Germany, South Africa, Middle East, etc.)
There are three primary reasons for these inflationary trends:
- We live in a global financial system of fiat or paper money, which permits endless money printing by global central banks.
- The Financial Crisis of 2008 brought production and development of many natural resources to a halt as credit dried up.
- Since the Crisis hit, the global central banks have printed over $10 trillion in new money and pumped it into the financial system.
As a result of these items, inflation has been rising dramatically around the globe. In poorer areas of the world, where as much as 50% of income is spent on food, this has resulted in civil unrest and outright riots.
http://www.zerohedge.com/contributed/2013-04-05/your-bullion-safe-bank
Video – Facing Collapse And Control
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