Again this morning I awoke to a market where stock futures soared ever higher even after important economic numbers came in at below expectations. As the stock market continues to remain at historic highs please tell me what is so good? What is so much better? As I see it the weight of carrying a large number of unemployed and people who have dropped out of the work force will wear down society through attrition. Often these people have little in the way of savings, this means the burden of caring for them will be transferred to society. If too many people shift into this category the fabric that holds us together as a nation and as a people will be shred to ruin.
Year after year America imports around five hundred billion dollars
more from other countries than they export. This means we
giant trade deficit, when we add this to our enormous government deficit
is easy to see that we are living far beyond our means. The Fed has been both complicit and superbly entrepreneurial when it
comes to the Ponzi schemes or pseudo-economics hocus-pocus that has allowed the current situation to develop. The Fed must at some point begin to ponder a real exit strategy and
end the massive and corrosive stimulus that the economy has come to
Fed policy has allowed Washington to sidestep addressing our structural problems to make
America more competitive, this will massively thwart growth going forward. Many people have become disenchanted with Washington which has become viewed as both dysfunctional and corrupt. As of late I have heard little in the way of concern over our budget deficit instead many Americans are focused on the gridlock in our capital that while halting reform also keeps us from facing more misdirected and poorly crafted laws that will continue to carve away from our freedoms. The building resentment and angst evident across America is being
taken by many as a sign of racism but I contend it is something more, people are pissed!
The seeds of a class war have been sown by a President as a weapon to
divide us. The growth of inequality is not as many allege the 1% at
the top stealing the icing off the cake, but the much smaller .1% or
.01% that have been enriched by the crony capitalism and corruption in Washington. They have NSA spying on Americans and thanks to
information leaked by Edward Snowden we know the "black budget" last year
was a massive 52 billion dollars. This money used in "secret" spy
operations should send shivers down the back of those
that have read about the totalitarian society described in
George Orwell's novel Nineteen Eighty-Four.
So again as I look at a landscape of empty and under-leased buildings that once housed thriving businesses that provided Americans with good paying jobs I'm forced to ask, How are things getting better? When looking at new job formation details reveal a slew of low paying part-time jobs and people leaving the job market. A closer inspection of auto sales shows that 31% of those buying cars are taking out sub-prime loans. Student debt continues to grow at an alarming pace and will corral disposable income for years to come. And finally as I look at police forces across the nation gearing up for urban warfare and leaving their mission to "serve and protect" behind I must say that I'm far from convinced that all is well ahead.