Ben Bernanke Speaks In Somber Tones - Douglas Castle Predicts The Effects.
Ben Bernanke Sets A Somber Tone for the U.S. Economic "Recovery." -- Perhaps this is a pre-emptive political strike against allegations of fraud... hmmm.....
Ben Bernanke Sets A Somber Tone for the U.S. Economic "Recovery." -- Perhaps this is a pre-emptive political strike against allegations of fraud... hmmm.....
Dear Colleagues and Friends:
I am not fond of Ben Bernanke, nor of his knee-jerk, symptomatic relief reactions, duplicity and delay policies. In fact, when a prestigious New York magazine named this bailout baron "Man of the Year," for keeping the US out of a "dangerous recession," I had mentioned to a handful of friends (that's about as many as I have) that the award was rather like having an arsonist set fire to your house, watching it burn for awhile, and then running in to rescue one of your five children... and winning a medal for courage. Sadly, many have believed in Bernanke's intrusive policies, taxpayer-crushing bailouts, backroom merger deals to merely forestall the inevitable, his philosophy of borrowing our way out of debt (sounds screwy, no?) and his notably uncharismatic "positive yet cautious" tone. If he's not delusional, he is merely a rather cold-hearted fibber trying to buy the current US economy and the current administration time to somehow "come around" based upon miracles and propaganda.
It's failed.
Banks aren't lending to consumers and small businesses. Joblessness (the true measure of unemployment) continues to climb. Productivity is also decreasing, great minds are leaving the country (as are many jobs), and businesses are seeking other home domiciles in order to 1), get cheaper labor -- the kind where people work for a wage instead of waiting for a government check, and to 2), escape before taxes in the US become impossibly burdensome and back-breaking in order to pay for the government's irresponsible policymaking.
Compounding the problem, is the influence that the US still exerts over the World economy -- It's what I like to refer to as the "Weapons Of Mass Destruction hoakum, trap 'em and choke 'em" routine.
The following news, excerpted from a newsletter issued by David Weiss speaks about about Bernanke's latest, most realistic declaration of the unpleasant truth, as the US slides (as do all major sovereigns) into a double dip recession that is actually a profound, fundamental depression:
Breaking news:
Bernanke slams U.S. economy! What to do ...
| MONEY AND MARKETS » |
Dear Mr. Castle, Global Futurist:
For the first time in many years, the Chairman of the Federal Reserve went before Congress, set aside his rose-colored glasses, dispensed with most of his sugar-coated platitudes and made some hard-hitting statements about the U.S. economy. Bernanke on jobs: "This is the worst labor market since the Great Depression."Bernanke on housing: Bernanke on fears about the future: "Most ... viewed uncertainty about the outlook for growth and unemployment as greater than normal, and the majority saw the risks to growth as weighted to the downside."Bernanke on tight credit for small businesses: "Bank loans outstanding have continued to contract. Small businesses, which depend importantly on bank credit, have been particularly hard hit."And never forget: All this is coming from a man whose job invariably makes him extremely reluctant to admit to negative trends in any sector at any time — if Bernanke is saying things are bad, you can bet your bottom dollar they're actually far worse. Our recommendation:
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AND NOW, MY PREDICTIONS CONCERNING WHAT THIS ACTUALLY MEANS FOR THE UNITED STATES, AND GLOBALLY (AT A SLIGHT LAG). DOUGLAS CASTLE PROGNOSTICATES:
1. Citizens are buying up weapons and ammunition for both home and street protection in anticipation of rampant crime -- some of them (mostly the militia crowd) are stockpiling military ordnance to defend themselves against a giant government that is growing in its fiscal appetite and its vampirical bloodfest off of the public at a neoplastic rate, unchecked, unstoppable and infinitely powerful.
2. Unemployment (non-government unemployment) will continue to rise as the availablity of credit for smaller business and for consumers shrinks.
3. Occasional upticks in consumer spending will be the sad result of a combination of factors, including:
- Interest rates on bank instruments are too low relative to the real rate of inflation -- there is less incentive to save and more to consume;
- Pension plans and capital markets (principally equities and index-based funds) are either a) too volatile for a person of average cardiac capacity to monitor and tolerate or b) are steadily eroding legitimately-earned principal;
- Consumers buy durable goods on interest-free layaway plans from large stores that are eventually going to go out of business but need to book current sales;
- An increasing portion of spending is going toward gambling-related activities, substance abuse (escapism), and frivolous consumption ["since the world is going to end tomorrow, I might as well buy a pepperoni pizza"];
- The release of new media/communications gadgetry.
4. Cooperative consumer movements and anti-government sentiment will be on the rise as an alternative to and a protest against irresponsible and immensely expensive government doles and metastically-growing, amoral monopolistic conglomerates;
5. The notion of community will begin to return as more public services are weakened or discontinued;
6. The IRS will be all the more vigilant in its efforts to audit, assess and repossess in order to assist the government in narrowing and ever-increasing national debt;
7. The underground (cash economy) will continue to flourish, and become regarded by the general public as more respectable than ever in history;
8. The gap between what banks pay for deposits (very, very little) and what banks will charge for the few loans they make (loaded with costs, fees, points and hidden charges) will continue to widen;
9. The new Financial Reforms will be of no consequence in regulating against massive financial institutional failures, but will create more government jobs and some more work for some of the larger, better-established multipartner law firms;
10. Taxes, fines tolls, tarrifs, surcharges, fees and "mandatory contributions" will increase steadily and lethally during the next two years to cover the costs of minimalist public services and to narrow the federal and state budget deficits;
11. Not-For-Profits will have a very difficult time getting donations -- many will go out of business;
12. Commercial real estate values will continue to decline in a downward "sawtooth" wave;
13. There will be increasing friction between federal and state governments on issues of funds allocation, jurisdiction, constitutionality, regulatory issues, law enforcement and conflicts between laws -- some of these conflicts will result in massive civil unrest, and a generalized sentiment or peception of seeing the federal government as having interests increasingly detrimental to those of the individual states. Some serious showdowns and confrontations will occur;
14. The demographics in the US will shift in favor of peoples of color with limited professional technical skills and education, while educated professional caucausians and established and successful people of color will seek to become expatriates;
15. US involvement in military and nation-building projects throughout the world will continue, with a handful of "contractors" profiting tremendously and with their profits remaining unrepatriated and uninvested in the US markets;
16. All forms of offshore or international investment, trusts and entities will be increasingly scrutinized and regulated against as being "unpatriotic."
17. I believe that a US economic rebound (and never a restoration to its former glory or leadership role) is possible through a very slow process (fueled by American entrepreneurship and foreign investment in the US) which may commence in the second half of 2013 and take in excess of seven years.
18. To add an additional nugget to the apex of a growing governmental cow pie, military efforts, expenditure and loss of life in Afghanistan will increase, as will the likelihood of more aggressive confrontation with Iran. The US presence in the "newly-rebuilt" Iraq will actually increase, but the increase will be in the form of lucrative (to a select few) mercenary and rebuilding engagements.
Other than that, Mrs. Lincoln, how was the play?
Faithfully,
Douglas Castle
Douglas Castle
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NOTE: This Article was originally published in The Global Futurist blog at http://TheGlobalFuturist.blogspot.com
KEY WORDS, TAGS AND TERMS: Bernanke, causes of economic recession, federal reserve system, recession and depression, the capital markets, Douglas Castle, TNNWC, The Omnigadget, The National Networker.
NOTE: This Article was originally published in The Global Futurist blog at http://TheGlobalFuturist.blogspot.com
KEY WORDS, TAGS AND TERMS: Bernanke, causes of economic recession, federal reserve system, recession and depression, the capital markets, Douglas Castle, TNNWC, The Omnigadget, The National Networker.
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