The corporate media is trumpeting the sharp upturn in the last quarter of US GDP as the economy having turned the corner but sadly it has not. Nearly 2/3 of the increase is simply US business restocking inventory after the big sell down during the credit freeze, they still don’t have a market. The rest is attributed to the government stimulus programs that have ended or will end in the spring.
The stock market went down again today and did not react to the supposed six percent increase in GDP because the Wall Street Ponzi scheme has nothing to do with the real economy. It is entirely because the USD continues to strengthen which is reflected in the declining price of gold. The Dollar is doing this because the market bubble in the various world markets continues to deflate. This is happening only because the world’s richest banks have frozen credit on orders from their government, that would be the People’s Republic of China, the only remaining super power.
Friday has so far brought us five more bank chains that have failed in the US and they may not be done for the day. The cost will approach two billion USD or more and of course what ever poor saps that had bought the stock of these banks have been wiped out. These events too have no effect on Wall Street since they don’t give a damn what goes on in the real world as long as their 100 million dollar bonus checks clear the bank.
Wall Street banks and trading houses are populated with people so rich that they look down their noses at people with the top of the line American Express card. They live in world of limos traveling from gated estate to private jet to office suite to five star golf resort. All arranged by assistants who make sure the personal chef has the finest gourmet food on the best china, all on the company dime, business travel you know. They don’t bother to carry money, an underling will supply a hundred dollar bill to light the Cuban cigar when required.
Are you short of Cuban cigars or hundred dollar bills? Welcome to the club, wages and benefits rose last year at half the rate of the consumer price index and the CPI doesn’t really reflect the decline in the American standard of living. The really hard times haven’t started yet, better forego the cigars and stock more canned goods. www.prairie2.com