Tuesday, October 6, 2009, 12:58 AM
Tuesday, October 6, 2009
This week's report is going to be largely free of data and news snippets and full of my opinions and broad strokes of logic.
As my long-time readers know, I consider my main occupations to be information scout, dot-connector, and analyst. But as a side job, I also provide a decisive alternative to the mainstream economic propaganda machine, which is thoroughly dedicated to maintaining the status quo, regardless of cost.
I completely understand why our fiscal and monetary leaders would seek to hide the truth from us all. We live in an economy that is based on growth and debt - which means it is a Ponzi scheme - and there's nothing more important to such a system than faith and confidence. So economic propaganda is not just a noxious by-product spewed from our economic tailpipe; it is viewed by those in power as a form of fuel, a necessity for our peculiar economic engine. They may have a point.
For my new readers, I want to make it clear that I do not expect or wish you to believe me over anyone else. Heck, trust neither me nor them, if that works for you; instead, trust yourself and your gut instinct about what is right. I began trusting myself several years ago, and I am much better off as a consequence.
This week (ending 10/1/09), despite the massive run up in stock over the past few months, despite the outrageous amounts of bailout and stimulus money applied, despite every attempt to put a positive spin on things, jobs continued evaporating, auto sales slumped to multi-decade lows, bankruptcies soared 41% over the prior year, and tax receipts continued to slide.
States such as California are sliding into fiscal chaos, and some, like Michigan and Alabama, are already there.
We are about to enter another leg of the downturn, and this one will be even bumpier and more uncertain than the last.