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America’s Economic Collapse Has Started

First of all, let’s get one thing straight. None of the statistics below came from any federal, state or local government agency. I prefer to use real numbers. It’s a shame the Main Street Media (MSM) repeats the numbers put out by the feds. There are only a few places you can go today to get the real facts and as I said that is a real shame.

The following numbers, percentages and statistics are not numbers you have heard through the MSM. However, these numbers are going to ring much truer to you if you have been paying attention even a little bit. These numbers will tell a stunningly different story than you have heard, but know in your unscientific gut, are true.

So, in laymen’s terms here are the numbers.  

Unemployment

The official unemployment rate stated as of April 2012 remains at an ugly perch of 8.2 percent, despite declines in recent months. But even that lofty level understates the magnitude of the jobs problem, according to the Wall Street Journal.

UnemploymentWSJ looks at the issue in terms of the labor force participation rate. That measures the percentage of working-age Americans, excluding those who are in jail or the military, who are “participating” in the work force. That includes both people who have a job and those looking for a job.

The rate has been dropping since January 2007, when it stood at 66.4 percent. The reading fell to 65.5 percent in July 2009, even as the Great Recession was officially ending, and currently registers an almost 30-year low of 63.8 percent. This is a net loss of 4.3 million jobs.

Taking that drop into account produces a higher jobless rate. If you apply the July 2009 participation rate to today’s jobless numbers, that generates an unemployment rate of more than 10 percent. And if you utilize the 2007 participation rate, you’re left with a jobless rate of 11.8 percent.

“That means fewer people to contribute to economic growth. Fewer people to pay taxes. Fewer people to help the U.S. earn its way out of a $15 trillion debt hole. (If indeed anybody thinks, that’s even possible)


AnnualGross Domestic Product (GDP) Percent Change

With the Presidential election cycle in full swing our incumbent administration, the media, and their financial pundits continue to maintain that the US economy’s is recovering very well thank you. They claim the presidents policies are helping the economy to recover.

Despite what we’re being told, however, the actual data tells a stunningly different story. In fact, we have a front row seat to witness the collapse of life in America, as we know it.

In this current recession, we are not even close (to getting the jobs back) and that’s 50 months and counting. The fact of the matter is that meaningful jobs won’t be returning any time soon. Recent (un)employment dataGross Domestic Product indicates that cumulatively we are losing jobs each and every month. And, those jobs that do become available are minimum wage jobs that are insufficient to offset the income loss we’ve experienced since 2008.

The bottom line is that if people don’t have money, they can’t consume to keep the economy going. This leads to a vicious negative feedback loop that forces small (and large) business employers to lay off workers, which takes even more money out of the economy, which subsequently leads to more business closures and cutbacks.

As evidence of this effect, we need look only at the most recent Gross Domestic Product (GDP) data which indicates that, while the economy is still officially growing, it’s doing so at a snail’s pace of just 2.2%. That’s the official government statistic, so of course it’s loaded with fuzzy math that fails to account for one very critical piece of information – inflation. By all accounts, even though the mainstream narrative is one of growth, recovery and increased consumer spending, the US economy is and has been in a recession since 2005.

 

Inflation

This Administration lied about death panels, jobs and taxes. Obama lied when he said you could keep your own doctor. He is now doubling and tripling the cost of health care for the military—to force them into HIS death panel ObamaCare. Obama lies about the unemployment rate by refusing to admit 4.3 million more Americans are unemployed.

Now he has been caught lying about the inflation rate. “This weighting results in a 2011 average annual inflation rate of 8 percent as measured by the Everyday Price Index, compared to a mere 3.1 percent from the CPI.

The most widely quoted official estimate, the Consumer Price Index (CPI), puts the 2011 inflation rate at 3.1 percent. That’s because the CPI uses a different array of goods and services to calculate the average annual percentage change in the cost of living.

InflationThe Everyday Price Index includes only the prices of goods and services that the average consumer purchases at least once a month.

The index includes food and beverages, household energy products and services, other utilities, motor fuel, prescription drugs, childcare fees, phone services, personal care products, and other goods and services purchased on a regular basis.

Unlike the CPI, the Everyday Price Index does not include housing. Despite the housing debacle caused in part by variable rate mortgages, most people do not renegotiate rent or mortgage payments on a regular basis. In addition, the index ignores big-ticket items such as household appliances and furnishings and new and used cars. It also excludes less expensive but irregularly purchased goods such as apparel and information technology.

Do we believe Obama or the prices we pay for goods and services? Guess Obama thinks because he was elected in 2008 Americans have a permanent case of the “stupids”.

Consider that food stamp rates have doubled over that period to 48.5 million participants. (That’s one in six Americans!) The average Joe Middle Class is broke, hungry and dangerously close to ripping to shreds the remainder of our country’s social safety nets.

Every piece of official data the government and their mouth pieces throw at us is and has been fabricated for the better part of a decade. Inflation is four times higher than Ben Bernanke will admit.

Foreclosure

Foreclosures continue piling up and the shadow inventory of foreclosed homes is now in the multiple millions. Real estate prices are still falling, with even ‘new’ buyers who purchased homes after the 2008 collapse andUnder Water thought they were getting a deal are now underwater on their mortgages. Here is the bad news. Home prices are expected to drop another 20% before we hit bottom.

The U.S. homeownership rate fell to the lowest level in 15 years in the first quarter of this year as borrowers lost homes to foreclosure and tighter inventory and credit kept buyers off the market. The rate dropped to 65.4 percent from 66 percent in the fourth quarter and fell a full percentage point from a year earlier, the Census Bureau said in a report today. That is Vacant Housethe lowest level since the first quarter of 1997, and down from a record 69.2 percent in June 2004.

Of the estimated 132.6 million U.S. homes, 18.5 million, or 13.9 percent, were vacant in the first quarter. Almost 14% of all the homes in this country are standing vacant. That is just mind blowing.

 

1 in every 662 housing units received a foreclosure filing in March 2012.

 

 So there you have it. Does it sound like the US economy is recovering? Rosy outlook don’t you think. You have to ask yourself why is the MSM lying to us. I’m pretty sure you know the answer. The answer is this administration is lying to you again to hide their failed policies.

My concern is, have we gone beyond the point of no return. Many economists believe so. They believe a correction will not happen until we are all in the streets just like Greece. I hate to even think about all the suffering and turmoil hard working Americans will have to go through, when it never had to happen.

Written By; The Accountant (H/T) Shadowstats.com

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