Papering Over Disaster: Alternative
Program for Economic Recovery
01 April 2012
By Stephen Lendman
Fall 2007 began the onset of America's greatest
Depression. Europe's in deep trouble. Reckoning day's
delayed by bailing out insolvent banks and throwing
money at markets like confetti.
What can't go on forever, won't. Progressive Radio
News Hour guest Bob Chapman warned investors for
years. It's just a matter of time. Houses built on
sand collapse. American and European economies are no
exception. They're sick and getting sicker.
Another Greek crisis approaches, Chapman warns,
whether "via austerity, demonstrations, military
coup," or perhaps the worst of all three if public
rage erupts in violence.
Ireland, Portugal, Belgium, Spain and italy are next.
BRIC giants China, India and Brazil are weakening.
Pyrrhic victories conceal core meltdown trouble. Are
policy makers "dumb enough to believe that austerity,
lower wages and higher taxes bring prosperity?" What's
happening in Europe and America looks "surreal."
Recovery's an illusion.
Another dirty secret is that France, Britain, and
other EU countries also show weakness. "These problems
are going to go on and on and on," says Chapman.
Economist David Rosenberg also warns of trouble.
Disturbing signs are everywhere. In America alone,
consumer spending stagnated. Core capex shipments are
down. The trade deficit's widening. Mortgage
applications are falling. Mortgage refinancing
activity collapsed. Gas prices are heading for $4 a
gallon on their way perhaps to 5.
In February, hiring announcements were down 85%
year-over-year. Pink slips are rising. JOLTS (Job
Openings and Labor Turnover Survey) data showed job
openings down 81,000 in January. They've posted
declines in three of the past four months. JOLTS
hiring numbers also fell 30,000, and dropped in three
of the past four months.
Savers are taxed, borrowers rewarded. A rigged system
favoring Wall Street punishes most others.
The latest housing numbers are awful. Economist Robert
Shiller believes "we will never in our lifetime see a
rebound in" suburban home prices. He predicts
"perpetual sluggish(ness)." Expect America to have a
"Japan-like slump that will go on for years and
years."
Rosenberg says "headwinds are so acute that despite"
zero interest rate policy for over three years, "trippling
the Fed's balance sheet, and four years of
trillion-dollar-plus fiscal deficits," a deepening
mess remains. Inflation's far higher than official
figures. Poverty's at record levels.
Recovery? What recovery! America's 1% never had it so
good. Another 10% or so are OK. Most others face
harder than ever hard times with no end of misery in
sight. Expect no change post-November, no matter who's
elected president or controls Congress. Washington's
criminal class is bipartisan.
Economist Paul Craig Roberts calls America's economy
"dead." Consumer confidence is far below decade ago
levels. Housing's on its back. Retail sales are lower
than January 2000. So is industrial production. Only
markets and rigged GDP numbers are up.
Roberts stresses often that recovery's impossible
because troubled consumers account for over two-thirds
of the economy. Middle class jobs moved offshore.
Trillions are thrown at Wall Street and wasted on
imperial wars while domestic needs go begging.
"The consequence of printing money when jobs have been
moved offshore is an inflationary depression. This
catastrophe" should unfold big time this year or next.
"The emperor has no clothes, and sooner or later this
will be recognized."
Roberts shares his views with listeners on the
Progressive Radio News Hour (PRNH). So does political
economist Jack Rasmus. His analysis is cutting-edge.
In early April, his newest book's due out titled, "Obama's
Economy: Recovery for the Few."
It covers analysis he gives PRNH listeners. He's next
scheduled on Saturday, March 31 at noon US Central
time. Listen live or archived for his latest economic
views and discussion of his new book.
It explains that after trillions thrown at Wall
Street, trillions more for imperial wars, and more
still in fiscal stimulus (largely for corporations and
rich elites), America's economy remains mired in
trouble.
At the same time, equity markets more than doubled.
Corporate profits hit record highs. CEO pay, bonuses,
and stock options are obscenely high, especially for
crooked banksters.
At the same time, corporate giants hoard cash and
barely loan. Nearly 25 million are unemployed or
underemployed. Economist David Rosenberg believes 30
million heading higher.
Home foreclosures exceed 12 million. Many more are
coming. Another 15 million homeowners struggle
underwater with negative equity. Income levels for 80%
of households are stagnating, while state and local
governments slash payrolls by hundreds of thousands,
cut services, and raise taxes.
Rasmus faults wrongheaded administration,
congressional, and Fed policies. Economic growth is
illusory. High unemployment and poverty levels explain
best.
Rasmus' book followed his 2010 one titled, "Epic
Recession: Prelude to Global Depression." Both used
reliable data excluded from mainstream discussion.
It's bad and getting worse. Expect harder than ever
hard times.
Rasmus offers another way. He calls it an "Alternative
Program for Economic Recovery." It focuses on job
creation, not destruction, housing, and local
government. He recommends major structural economic
reforms, targeting taxes, retirement, and banking.
He concludes with common sense workable proposals for
"fundamental, longer term change necessary to reduce
household, small business, and State-Local government
debt, and to restore historic rates of income growth
for working and middle class households."
Read what others say about his book. Office and
Professional Employees Union National President Nancy
Wohlforth said it's high time "to seriously begin
public discussion and debate of economic alternatives"
he proposes. They're cutting edge and vital.
South Carolina AFL-CIO President Donna DeWitt offered
praise, saying Rasmus "connects the dots and gives new
meaning to common sense economics."
"While working people reel in the downward spiraling
economy, (he) analyzes how we got where we are and
makes recommendations for sustained economic growth
and recovery."
"It's the kind of reading that makes every leader stop
and say 'Wow! That makes perfect sense. Why didn't I
think of that?' Then ask yourself, 'Why wouldn't our
President think of that?' "
"When you've read the book, I'm confident that you
will conclude that Rasmus has done a brilliant job of
defining the impact of the Obama policies and
decisions" that continue crisis conditions without
letup.
This writer agrees with others. Rasmus' articles and
books are cutting edge. His analysis is some of the
best. For years, his predictions proved accurate. Get
them monthly on the Progressive Radio News Hour.
His new book offers must read detailed analysis,
especially with storm clouds approaching at a time
forced austerity's harming growing millions.
It hardly matters whether Republicans or Democrats
control Washington. Its criminal class is bipartisan.
Public outrage alone can change things. It starts by
getting and staying informed.
On America's economy, Rasmus is one of the best. He's
honest, accurate, thorough, common sense, and clear.
For many, his new book may be a wake-up call.
Read it and spread the word. Our only chance for
change is us.
Stephen Lendman lives in Chicago and can be reached
at lendmanstephen@sbcglobal.net. Also visit his blog
site at sjlendman.blogspot.com and listen to
cutting-edge discussions with distinguished guests on
the Progressive Radio News Hour on the Progressive
Radio Network Thursdays at 10AM US Central time and
Saturdays and Sundays at noon. All programs are
archived for easy listening. http://www.progressiveradionetwork.com/the-progressive-news-hour/.
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