James Rickards, the author of The Death of Money: The Coming Collapse of the International Monetary System (a must read) has written a great article about the real economic conditions of America today. Below is a summary of important facts.
Listening to mainstream market commentary on television and reading the financial press leaves one with the impression that the economic recovery is gaining strength and that stock market indices, at or near all-time highs, will go higher still. But, the facts show that the fundamentals of the U.S. economy are awful and getting worse.
(1) It was reported that 288,000 jobs were created in June, but full-time jobs declined by 523,000 while part time jobs increased by about 800,000. Part-time jobs offer fewer hours, lower pay and few benefits.
(2) There are 7.5 million people working part-time on an involuntary basis compared to about 4.4 million doing so in 2007. Employers are aware of this and simply cut full-time jobs and replace them with part-timers to reduce costs.
(3) Much of the decline in the declining unemployment rate is attributable not to job creation but to the declining number of people looking for work. According to the “rigged standard” they use, once people stop looking for a job, they are no longer technically “unemployed” and no longer counted as “unemployed.” The unemployment rate would be zero if everyone stopped looking for work. Only 62.8% of Americans participate in the work force today.
(4) Productivity of those working is now in decline.
(5) Real wages are stagnant.
(6) Over 50 million on food stamps, 11 million on disability, and millions more on extended unemployment benefits.
(7) These are the real reasons for the shocking 2.9 percent decline in first quarter GDP. It was not the result of “cold weather.”
You should also be aware of the following:
(1) China is slowing precipitously and may be on the brink of a credit collapse.
(2) European growth is near zero.
(3) The mighty German economy is slowing partly because of weaker demand from Ukraine, Russia and China.
(4) U.S. financial markets appear to be growing bubbles.
(5) US stock indices are at all-time highs while economic fundamentals fall apart.
(6) The structural reform that is required for a turnaround can only come from structural reform, which is the job of the White House and Congress, not the Federal Reserve. This looks unlikely because they are barely speaking.
Read the complete article at – http://www.darientimes.com/33772/rickards-stock-market-reality-check/
For information about The Death of Money or to purchase it go to -- http://www.amazon.com/The-Death-Money-Collapse-International/dp/1591846706/ref=as_sl_pc_tf_til?tag=thebiblicalherit&linkCode=w00&linkId=DNKTKXFS5M3YGCU6&creativeASIN=1591846706
That's today's cogitation!
That's today's cogitation!