You could hear this great news pretty much anywhere -- maybe from Bloomberg, which this spring hailed the "surprising strength" of corporate balance sheets. Or perhaps in the Washington Post, where Fareed Zakaria reported that top companies "have accumulated an astonishing $1.8 trillion of cash," leaving them in the best shape, by some measures, "in almost half a century."
Or you heard it from Dallas Federal Reserve President Richard Fisher, who recently said companies were "hoarding cash" but were afraid to start investing. Or on CNBC, where experts have been debating what these corporations are going to do with all their surplus loot. Will they raise dividends? Buy back shares? Launch a new wave of mergers and acquisitions?
It all sounds wonderful for investors and the U.S. economy. There's just one problem: It's a crock.
American companies are not in robust financial shape. Federal Reserve data show that their debts have been rising, not falling. By some measures, they are now more leveraged than at any time since the Great Depression.
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As ever, the truth is someone else's problem and no one's responsibility.
When it comes to the economy, let's just hope the public is too hopped up on painkillers and antidepressants to notice. If they knew what was really going on, there'd be trouble.
(snippet)
As ever, the truth is someone else's problem and no one's responsibility.
When it comes to the economy, let's just hope the public is too hopped up on painkillers and antidepressants to notice. If they knew what was really going on, there'd be trouble.
Is that 7.2 Trillion of worthless Federal Reserve Notes that they owe?
ReplyDeleteMaybe they should take the advice of Jesus when he was asked "Is it lawful for us to give tribute to Caesar?" Jesus said give the coins back to Caesar. (Mark 12:16-17) NOw imagine if everyone gave their coins back to Caesar and he is left there with a pile of coins at his feet and has NO POWER.
Maybe we need to give the Federal Reserve all of their money back and they lose all their power.
END THE FED
A Ponsi scheme within a Ponzi scheme within a Ponzi scheme.
ReplyDeleteThe problem is that the government won't let the debts be written off. Usually if a normal person starts a business and loses a lot of money, that business is just finished. The debts go away because they can't be paid and people just move on.
ReplyDeleteThe government won't let that happen though. Rather than letting these banks and loan companies fail and the people off the hook, the government takes the tax payer money and gives it to these banks and creditors, who then turn around and go back to harassing the tax paying public.
This government will simply have to fall. It's already an oligarchy to begin with.
Actually,Your debts are impossible to pay,The republic of America is Broke.Ruined by international banksters to further "world Government"
ReplyDelete