Article Image
News Link • Depression

Obama's permanent depression

• Asia Times Online
 Keynesian spending creates a deficit that sucks all the available capital out of the grassroots economy and transfers it to the Treasury market. Easy funding terms from the Federal Reserve allow financial institutions to make money in government bonds while shutting off credit to the rest of the economy. It's classic crowding out, in which the government's misguided effort to spend its way out of recession pushes the productive economy deeper into the hole. 

Panic is starting to take hold at the Obama White House over the
relentless deterioration of the job market. US jobs in September declined by about 263,000 jobs, worse than the 175,000 drop expected by Wall Street economists. To the 15.1 million on the official unemployment count, add 9.2 million "involuntary part-time workers" and 2.2 million who were dropped from the tally because they had not sought work in the past month, and theunemployment rate would rise to 17.1 million. 

That doesn't include another three million long-term discouraged workers - those who want to work but who have long since stopped looking. That would take the number up to 20%. In past recoveries, a number of economists observed, 

Join us on our Social Networks:


Share this page with your friends on your favorite social network:

Purse.IO Save on All Amazon Purchases