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Is the Recession Really Over?
September 21, 2010
President Obama and the National Bureau of Economic Research have
declared that the recession is over. As a matter of fact, it was over
more than a year ago. Warren Buffett, the third richest person in the
world, agrees. So it must be true.
But wait. The Federal Reserve Board said the same thing this month that
they said last month, concluding that "economy activity has slowed in
recent months." The U6 unemployment rate (people looking for work plus
part-timers plus "discouraged workers") is at or near the highest levels
since the Great Depression, about 17%. John Williams pegs the real
unemployment number at 22%.
However you count, it's more than 30 million people either out of work or
scraping by with part-time work. Many are moving in with relatives or
living in shelters, losing their homes to foreclosure or getting evicted
from rental housing. Home sales are declining, and at record low levels.
More than 400,000 people file new unemployment claims each week, and only
half that number at most return to work. How can the recession really be
over?
I'm sorry to say, I think this "recession is over" bit is a sham. Even
the mainstream economists are telling us that the chances of a
"double-dip" recession are high - some say as much as 50%. And the
contrarian economists and analysts are unanimous - we're in for a very
bad time. The nice words from Washington are playing to Wall Street, to
convince "investors" that the economy is not going south. It is Jedi Mind
Speak. Everything's OK. If you can just convince everyone that
Everything's OK, Everything Will Be OK.
This works for a while, but when you take a long walk on a short pier,
even if you think the pier is long, eventually you get wet.
My advice: don't believe a word of it. I agree with the contrarians. I
think we're in for a very bad time. Stay out of the stock market. Save
like there is no tomorrow. Pay off your credit card debts as much as you
can. If you have any extra savings, I suggest you invest it in gold at
kitco.com or goldmoney.com. Because so many of the Wall St. mafia own so
much gold, you'll need to watch it carefully for market manipulation, but
in my opinion the dollar is so stretched that gold is unlikely to come
down for a long time, if ever.
Keep yourself healthy by following my health maintenance regimen:
http://www.cqs.com/naturalhealthguide.pdf
Stay well!
Jonathan |
Standard Disclaimer: Any economic or financial information above, in
Community Alert and Bulletin, Economic and Health Alerts,
and the
Economic and Health Survival Guide do not constitute financial advice, but are
condensations and distillations of the work of others and a few words of what I
believe to be common sense. The assistance and advice I may provide for you in
setting up in setting up an IRA does not guarantee returns, which are dependent
on market conditions, and you are taking full responsibility for financial
decisions you make based on my advice. Please seek out an independent licensed accountant
or financial advisor to review any information and references I have
provided as well as their own expert knowledge, in order to tailor a financial
plan to your circumstances. I cannot be held responsible for the consequences of
decisions made based on the information and advice that I provide.
I am a health, environment, and economics researcher and consultant. I
am not a physician, and the health information, suggestions, and recommendations
that I provide are not prescriptions. When you pursue alternative remedies,
you are taking full responsibility for your own health decisions, and it is
recommended that you consult with a qualified physician to monitor your
progress. This is especially the case if you currently take pharmaceutical
drugs, as your dosage requirements will likely change as your body heals.
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2010
Jonathan Campbell, Health Consultant
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