Eighty eight million people have dropped out of the labor force.
That is a full quarter of our entire population. So with eighty eight million people out of work, who is buying all of those vacant homes, consumer durables, cars, and gasoline?
Answer- nobody. All of those people out of work and all of the "new" crappy service jobs that pay less with no benefits- are now showing up in tax collections. The IRS and the GAO have been receiving far less in taxes than originally projected. About 1.3 trillion. They call that the deficit.
So today I read this mainstream media piece of garbage which is so emblematic of our times. It is propaganda. Lies. At the very best, I will call it an opinion which is not based in fact. http://finance.yahoo.com/news/no-repeating-slowdown-seen-u-141158084.html?l=1
So here is how the grand deception works.
The media, particularly in an election year, is going to spin every single economic news item in the best possible light- so that they can keep their liberal leader in power.
The FED is going to lie and state that there will be no QE3 once Operation Twist is wrapped up. They are going to lie publicly while planning and then implementing QE3. This will keep equity markets up and commodity prices down. Since there is absolutely no safe place to put money- people will still be funneled into the stock market as the grand deception continues and our national debt cracks 16 trillion. One more term of Obama should be enough to completely ruin any chance we have of extracting ourselves from this debt tsunami. Obama is not an idiot. He is destroying our old way of life on purpose- his ultimate goal I believe is to turn us into a socialist state where the government steals our money and makes us beg for it back in the form of tax breaks, health care, welfare.
Here's two charts that speak the truth. http://www.zerohedge.com/news/two-charts-exposing-americas-record-shadow-welfare-state
Get your passports now. If you owe this government more than 50k- they are going to seize your right to travel. That threshold figure will certainly ratchet down. They own you- you just don't know it yet-