The economy is now on life support from government stimulus. We have to remember that stimulus 1 from last year pumps a lot of money into construction for early 2011 to save Oba mama. The economy is slowing again as Fed funds are pulled in fear of a political backlash from fear of deficits killing careers in Washington.
Remains to be seen but I expect a second dip without another massive cash input from the Fed before then.
If not, next time it will be the Republicans turn because I don't think the Dem's are going to be in charge much longer. Of course Oba mama runs for reelection against another nobody in about 18 months and it will probably be business as usual.
Expect a lot of bullshit about deficits, not killing enough Moslems and especially we need more windmills to drive our SUVs. Just pray these morons don't close down the rest of the oil industry in America because we have proven again that we do a lousy job at civilizing brown people who fight with sticks and rocks.
International Forecaster June 2010 (#1) - Gold, Silver, Economy + More
Remains to be seen but I expect a second dip without another massive cash input from the Fed before then.
If not, next time it will be the Republicans turn because I don't think the Dem's are going to be in charge much longer. Of course Oba mama runs for reelection against another nobody in about 18 months and it will probably be business as usual.
Expect a lot of bullshit about deficits, not killing enough Moslems and especially we need more windmills to drive our SUVs. Just pray these morons don't close down the rest of the oil industry in America because we have proven again that we do a lousy job at civilizing brown people who fight with sticks and rocks.
International Forecaster June 2010 (#1) - Gold, Silver, Economy + More
We believe an inflationary depression began in February of 2009, and little has changed. Since then factory output has increased, as have inventories and other outward signs, such as retail sales. We believe that one-year spurt is ending, unless a new stimulus program is put in place. This past week we saw a $78 billion addition to unemployment benefits and Larry Summers has said they need an additional $200 billion. In order to keep the economy going sideways a total of another $800 billion will be needed. The Fed may have cut back the creation of money and credit to zero, but it is still dishing out trillions to domestic and foreign banks, which can only affect the domestic economy in a residual way. The key is real personal income. Including government programs it has fallen $500 billion over the past 16 months. In addition real unemployment remains at a high of 22-3/8%. That is U-6 less the birth/death ratio. This terrible dilemma is a first and is surprising in as much as government addition to income has gone past 18% for the first time ever. We expect that part of the reason for both situations is the perpetual drag of free trade, globalization, offshoring and outsourcing, which has continued unabated.
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