Conditions Don't Look Good

From The Ramparts

Junious Ricardo Stanton

Conditions Don’t Look Good

“The real story is that we’re in a Great Correction. But it is one that is having a hard time expressing itself. Every time it opens its mouth, the feds come along with duct tape. The Great Correction wants to tell the truth – that there’s too much debt in the system; that most of today’s ‘growth’ is phony, and that bad debt needs to be erased. The feds want to shut it up… they want to lend more money… and pretend the problem will go away. As a result, the ‘news’ we get is garbled… unclear. We have to listen hard to figure out what it really means.” The Daily Reckoning UK Edition www.dailyreckoning.co.uk/economic-forecasts/gagging-the-great-correction-100

The corporatist media operates on behalf of its owners not the people. They do not see it as their job to tell us the truth so they lie repeatedly. Rather than tell us what’s actually going on and shine light on the rampant incompetence, corruption and criminality in high places they peddle the flim flam that everything is OK. They tell us the economy is on the rebound and assure us the ever increasing wars and occupations the US engages in are “humanitarian missions”. The US Congress is beholding to the money that bribes them with campaign contributions so the ones with the most seniority rarely fight for the little people and they only pretend to be concerned about the economy. To really do something they’d have to work together, put aside partisan ideology to challenge the bankers. But in this system, the banksters own the Congress lock stock and barrel.

Sadly conditions for the average American are worsening. Many of the people who rushed to buy homes thinking the value of their new homes would continue to escalate and they could use the bourgeoning equity like a giant credit card forever, are now facing the harsh reality their home value is in rapid decline. “The median property value for owner-occupied homes in the United States was $185,200 last year. After adjusting for inflation, this value decreased in the United States by 5.8 percent from 2008. The nation’s highest median property values were all in California, including San Jose-Sunnyvale-Santa Clara ($638,300), San Francisco-Oakland-Fremont ($591,600), Los Angeles-Long Beach-Santa Ana ($463,600), San Diego-Carlsbad-San Marcos ($417,700) and Sacramento-Arden-Arcade-Roseville ($298,000).” Census Data Shows Falling Incomes and Declining Home Values www.nuwireinvestor.com/articles/census-data-shows-falling-incomes-and-decline To add insult to injury incomes in the US are also on the wane, “Newly released US Census figures highlighted decreases in US median household incomes, and a substantial increase in the number of US households with incomes below the poverty line. US median home values declined by more than 5 percent compared to 2008, when adjusted for inflation” ibid. To make matters worse inflation which is really a dramatic increase in the money supply caused by the Federal Reserve Bank (which is not part of the government and is a privately owned banking cartel which sets monetary policy, interest rates and credit availability) policies is creating ever more hardships on US citizens. This is due to its mad money printing press that is creating money or more correctly worthless digital credits out of thin air called “Quantitative Easing”. Quantitative Easing is really bankster speak for counterfeiting. Inflation is an increase in the money supply which devalues everything else by making it cost more to purchase or use.

Meanwhile the banks still remain insolvent due to the quadrillions in over leveraged derivatives and real estate speculation, which means they are on the hook for more money than actually exists (because of the over leveraging and debt). This is why they went to the Congress for a bailout. Plus the banks are not lending because they dare not lower their meager reserves for a fear of a run on their bank or another collapse. This is creating a credit drought. This systemic lack of credit further stifles economic growth hence higher unemployment. It’s a vicious cycle with no end in sight. The Fed’s policy of Quantitative Easing (inflation) will not solve the problem. “Quantitative easing (QE) is loosely referred to as ‘printing money’ and is an extraordinary monetary measure. QE is used when ordinary monetary control cannot be effective, such as lowering interest rates. We’ve seen QE in action with the US Government action taken to (1) keep the economy afloat in 2008 and (2) to stimulate the economy now.2008 was the year when the recession really started to take hold; US mortgage backed assets held by the world’s banks finally showed their true colors (i.e. they were high risk). Those assets were performing poorly which took a nosedive as default rates rocketed through the roof . Banks holding these assets saw their credit ratings plummet and found they could not borrow from other banks. The problem was compounded by the banks and regulators not appreciating the full scope of the problem. Confidence shriveled and banking liquidity was seized around the world, as the global banking system and the world’s economy was on the brink of total meltdown.”

Quantitative Easing along with the continued commodities speculation is driving up the cost of living for all of us; food oil consumer goods etc. The US economy and global banking system still have not recovered from the casino capitalism, fraud and criminality of the hedge funds, Wall Street banks and investment houses. The government under both Bu$h and Obama by failing to prosecute the culprits should be viewed as co-conspirators equally responsible for the ongoing depression we are all experiencing. Unfortunately this information is only being shared amongst the financial community and the insiders so they know what to do and how to protect their assets against further devaluation. The financial elites and their cronies could care less about us. In fact the only way they will continue to stay on top and in control is for us to remain ignorant, discombobulated and exploitated.

Don’t be fooled as the 2012 election rhetoric heats up, Obama, the Democrats and the Republicans are all in on the scam. They should all be called out and held responsible. If we don’t change course soon, the banksters’ policies will see the US devolve into a neo-feudal debt ruined banana republic.

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