The Financial Crisis Is Not Over. The Economic Recovery is “Not Real” – Paul Craig Roberts

Readers ask if the financial crisis is over, if the recovery is for real and, if not, what are Americans’ prospects. The short answer is that the financial crisis is not over, the recovery is not real, and the U.S. faces a far worse crisis than the financial one. Here is the situation as I understand it: Continue reading

Recession Is Over; Depression Has Just Begun

For the last few months I have been casting around looking for bullish data points as counterfactuals to my more bearish long-term outlook. I have found some, but not enough. If you recall, early this year, I stated that we are in depression, making the case for the ongoing downturn as a depression with a small ‘d.’

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The Economy Is A Lie, Too – Paul Craig Roberts

Americans cannot get any truth out of their government about anything, the economy included.  Americans are being driven into the ground economically, with one million school children now homeless, while Federal Reserve chairman Ben Bernanke announces that the recession is over. Continue reading

Hatoyama’s New Path and Washington’s Anxiety

“The financial crisis has suggested to many that the era of U.S. unilateralism may come to an end. It has also raised doubts about the permanence of the dollar as the key global currency. I also feel that as a result of the failure of the Iraq war and the financial crisis, the era of U.S.-led globalism is coming to an end and that we are moving toward an era of multipolarity.” Continue reading

Audio: Guns And Butter – Dress Rehearsal For Debt Peonage

“Dress Rehearsal For Debt Peonage” with economist Dr. Michael Hudson on why the banks are returning the bailout money; bank fees and penalties; banks prefer default to foreclosure; debt as wealth; Obama’s Financial Regulatory Reform Proposal and its six major flaws; the deregulation-by centralization ploy; failure to reform the economy will lead to debt peonage. Continue reading

Less Government or Lower Wages? You Decide – Peter Schiff

The nationwide revelry surrounding our apparent economic recovery was disrupted this week by the release of lower-than-expected retail sales data. However, rather than sending a chill up the spines of those hoping for a quick end to the downturn, the numbers should be welcomed. Though this may come as a surprise to most observers, lower retail sales are precisely what our economy needs. Continue reading

MSM: Laughing all the way to the bank

(aljazeera) – Wall Street and the City of London – the world’s two major financial centres – declare it is “business as usual” again… They are hiring, poaching each other’s staff and their profits are soaring. Continue reading

Securitization: The Biggest Rip-off Ever – Financial Deregulation has Opened Up A Pandora’s box

Is it possible to make hundreds of billions of dollars in profits on securities that are backed by nothing more than cyber-entries into a loan book? Continue reading

“Down the Memory Hole,” Alan Greenspan Style

He’s back and in denial in a March 11 Wall Street Journal op-ed headlined: “The Fed Didn’t Cause the Housing Bubble.” He lied, the way he did throughout his career and for 18.5 years as Fed chairman. How else could he have kept the job, be knighted in the UK for his “contribution to global economic stability, wisdom and skill,” then afterwards be extolled by the Money Trust he enriched. Continue reading

Czech president compares EU parliament to one-party state

Increasing the European Parliament’s powers won’t solve EU’s democratic deficit, since the bloc’s legislature does not represent any nation and allows for no political alternatives opposed to EU integration, Czech President Vaclav Klaus told MEPs on Thursday Continue reading

The Ugly Truth: America’s Economy is Not Coming Back

President Barack Obama and his economic team are being careful to couch all their talk about economic stimulus programs and bank bailout programs in warnings that the economic downturn is serious and that it will take considerable time to bounce back. Continue reading

Financial Ruin and War For All Who Oppose The Rulers of the Economy

The Illuminati of course chose the people comprising Obama’s Cabinet, and they are the same red scum from the Clinton Administration who destroyed our economy with deregulation, and who destroyed our security by greatly reducing our military capacity while setting up the phony War on Terror.

And let’s not forget about the Clinton Administration’s War in Kosovo, which was set up to split Kosovo from Serbia, so that the CIA and MI6 could have an illicit drug gateway to Europe, an opium distribution center run by Islamic thugs that would oversee the trafficking in opium to be produced by the soon-to-be-conquered Afghanistan, whose government would be taken over by our Illuminist government after the Taliban were ejected in the aftermath of the 911 attacks. Continue reading

Wall St. and the Fed Get Fatter, While Main St. Suffers

The greed of some of the Wall St. banksters, and the Fed’s inept policies, like condoning deregulation, are the real causes of the current financial meltdown. Nevertheless, the U.S. Congress has given them a green light to rake in trillions of dollars in taxpayers’ bailout money, with little or no public disclosure. The Fed’s functions should be taken over by the Treasury Dept. Main St. needs to be Congress’ prime concern, not Wall Street.

The Fed

The Fed

“Wall Street has hijacked the economy for the last twenty some years.” – Richard L. Trumka, Secretary-Treasurer, AFL-CIO Continue reading

A Futile Bailout – Darkness Falls On America – Paul Craig Roberts

America has become a pretty discouraging place. Americans, for the most part, will never know what happened to them, because they no longer have a free and responsible press. They have Big Brother’s press. For example, on September 28, 2008, a New York Times editorial blamed the current financial crisis on “antiregulation disciples of the Reagan Revolution.”

What utter nonsense. Every example of deregulation that the New York Times editorial provides is located in the Clinton Administration and the George W. Bush administration. I was a member of the Reagan administration. We most certainly did not deregulate the financial system. Continue reading

Why Gold Is Dropping When It Should Be Rising

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.

Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.

The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down. Continue reading

US Economy: Rudderless and Reeling From Direct Hits – Paul Craig Roberts

We were promised a “New Economy” of high-tech tradable services to take the place of the offshore manufacturing economy. Wondering what had become of the “New Economy,” Duke University’s Offshoring Research Network searched for it and located it offshore. Yes, the activities of the “New Economy” are also outsourced offshore.

Call centers, IT operations, back-office operations, and manufacturing have long been moved offshore. Now high-value-added proprietary activities such as research and development, engineering, product development, and analytical services are being sent offshore. All that’s left is finance, and it is crumbling before our eyes. Continue reading

The Fed uses Wall Street ‘shock’ as cover for deregulation

The Financial Times first reported in news that Wall Street banks are fighting for life early this morning that the U.S. Federal Reserve was making “it easier for financial institutions to access Fed liquidity by easing terms on its borrowing facilities and accepting a much wider range of assets as collateral.”

The Fed likely figured the shock of bank failure today was an excellent time to sneak in a regulatory change. The Fed “widened the set of assets eligible as collateral for loans of Treasuries to include all investment grade paper, and raised the size of these Treasury loans to $200bn.” Continue reading