No Recovery: Its a Depression

From one scam to another…that’s the way the feds do it. From bailing out Wall Street they now turn to bailing out the entire world economy – in a similarly fraudulent way. Tim Geithner told the Chinese last week that the United States would revive thanks to increased private demand. But the feds cannot really increase demand in the private sector. Increasing real demand would mean increasing real wages. And there’s no sign of that. To the contrary, incomes are going down.

Yesterday’s news tells us that personal incomes went down 1.3% in June. Incomes had gone up in May, by precisely the same amount – 1.3%, thanks to stimulus payments. Then, too, commentators saw it as a sign of recovery. But what the feds gave in May was taken away in June. The future caught up with the Obama administration’s stimulus efforts within 30 days. Net result = zero.

The June number reflected the biggest drop in income in four years. It is not surprising. We’re in a depression, remember? Salaries and wages fell 0.4% in June…the 9th drop in the last 10 months.

“It looks like there are finally some signs of recovery in the US,” said more than one person we talked to last night.

The occasion was a cocktail party…held on the grounds of a stately chateau. The summer social season is underway in Poitou. We are attending dinners, plays, cocktail receptions, barbecues and weddings.

Last night, waiters in tuxedos passed out champagne, foie gras canapés, and desserts while hundreds of guests milled about and talked.

“You might want to hedge your bets on this recovery,” we told one reader. “It’s probably not going to work out.”
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