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In the spirit of true political doublespeak, the group cautioned that its findings bear no relation to the current state of the economy or represent a forecast about the future. If another downturn occurs anytime soon, they said, it would constitute a separate recession.
The only voice of reason in this report came from economist Lawrence Katz of Harvard who said: “For the typical American family, the economy is still stagnant,” “There is very little sign of widespread prosperity.”
The purpose of official sounding reports like this, that will undoubtedly be reported as fact and assumed to be true, is perceptual engineering. The mantra that the recession ended is a statistical invention for political purposes heading into a mid-term election. Short term history is being rewritten before our very eyes to make things sound good. The recession, which is really a depression, never really ended.
Need I remind you there are over 8 million homes in some state of default or foreclosure. Commercial real estate continues to crash and destroy bank capital. True unemployment is closer to 20%, not the widely reported 10% number. Jobs that have been lost are not returning. People, families and savings are being eaten alive by a slow burn that is painful and often remains hidden as people suffer in quiet desperation. And we're supposed to believe the recession is over?
Rhetoric is so far out of touch with reality, I think those who create the rhetoric have so completely insulated themselves from what is happening, that a total, intellectual disconnect has developed, and a severe backlash of unknowable consequences is just around the corner.
I mean just this week, White house economic advisor Larry Summers announced he is departing Washington. This follows on the coattails of White house budget director Peter Orszag who stepped down in July and White House Council of Economic Advisors Chairwoman Christina Romer who left her job at the beginning of this month.
All of this administration's key economic personnel are jumping ship. They know what's coming. They know its unstoppable. They know what Alan Greenspan said in a speech on Sept 15th to the Council on Foreign Relations is true... And that is: "that fiat money has no place to go but gold." Ultimately in the battle between paper and metal.... metal WILL win. Checkmate.
