Thursday, April 28, 2005

It All Falls Apart

miss

For weeks we have been treated to a virtual Mississippi river of propaganda explaining how high energy costs no longer matter and doesn't effect the markets and interest instability doesn't matter either, housing values will rise forever in a hyper inflated fashion which isn't really a bubble....pop.

Economy grows at slowest pace in two years

APR. 28 8:41 A.M. ET The economy lost momentum in the opening quarter of 2005, growing at an annual rate of 3.1 percent. The slowest pace of expansion in two years, amid soaring gasoline prices and rising interest rates, offered new evidence the economy has hit another "soft patch."

The latest reading on gross domestic product, released by the Commerce Department on Thursday, showed that consumers and businesses turned cautious in their spending in the January-to-March quarter, a key factor in the slower economic growth. High energy prices and rising borrowing costs are causing Americans to tighten their belts a bit.


Just last week the line was, there is no belt tightening. Reporters are supposed to notice the obvious and editors should punish pundits who can't analyze their way to the corner store without a guide.

Jobless claims climb.

Initial claims rose 21,000 to a seasonally adjusted 320,000 last week, the Labor Department said. Read the full report.

The department could identify no special factors behind the increase, which was in line with the expectations of most Wall Street economists. See Economic Calendar.

Initial claims rose 21,000 to a seasonally adjusted 320,000 last week, the Labor Department said. Read the full report.

The department could identify no special factors behind the increase, which was in line with the expectations of most Wall Street economists.


OK. Readers of Culture of Life News knows that last week we ran a series of articles explainin the amazing 200+ point climb in stocks which seemed irrational on the surface. The economic indicies are all showing great weakness. The ones that matter the most, the "historic index" if you will, are in terrible shape. No country at any time in history can run the raging trade and budget deficits America has created for very long! It is literally impossible. All kinds of excuses are carted out to explain this situation and to excuse responsibility for it. As our CEO executives get arrested for economic crimes, all wail that they know nothing and have no control over their own criminal enterprises.

One government report after another details the failings and crimes of our own government and all reports end with, "We hold no one responsible for this". Just because one evades responsibility for things doesn't make them dissappear.

Elsewhere, the NYT notes:

''I think the GDP numbers have kept inflation on the front burner and that's obviously weighing on the day's action,'' said Bryan Piskorowski, market analyst at Wachovia Securities. ''But bonds are not reacting super badly to these numbers. We're at a pivotal point right now. What the bond market is trying to do is determine at what point do we see light at end of the tunnel with regard to the Fed? So we're taking some solace in that.''

They pray for cheap loans below the rate of inflation. It benefits others to keep the cheap loans going. This is why we pretend the Japanese and Chinese are forcing us to have cheap money so the export/import merry-go-round won't stop turning. We are addicted to this unreal funding. After five years of the economy "not being in recession" we are forced to treat all events as emergencies. Under Clinton, the cost of lending rose and rose relentlessly yet the economy hummed. Since the GOP took over our entire government, the economy limps along with a thousand crutches all of which are breaking now, one by one.

Any tiny event destroys it all. Like a rotted oak that still stands but has been hollowed out by termites and carpenter ants, even the tiniest breeze can bring it crashing down.
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