Trade deficit, up. Budget deficit, way up. National debt, way,way up. GDP, adjusted for the government's lies about inflation, way down. Tax revenue, way down. Corporate profits, way down. It's true the major American Stock Indexes are down but nothing like one would expect and they are, for the time being, stabilized.
There are stories about price gouging and shortages of gasoline, regionally, around America with prices as high as $5.50 a gallon reported, even though crude oil is falling below $100 dollars a barrel. The upward price spiral of food commodities broke, a couple of months ago and prices continue to fall. How then, can a new round of consumer price increases at grocery stores and restaurants, as much as 30% on most items, occurring now, be explained.
A decade ago, when the Euro was introduced, it was at parity with the US Dollar. The Dollar slowly decreased in value, until you needed 1.7 Dollars to buy a Euro. Despite the rapidly increasing US monetary supply, the insolvency of our banking system and the willingness of our Treasury to print money ever more rapidly, the Dollar has reversed its slide in value against the Euro and is currently at 1.4 per Euro and falling. How and why is this happening? There is no rational explanation.
Last week FANNIE and FREDDIE were nationalized. It is said they are poorly run. How will the government do a better job running them? By using the same cost saving techniques and decision making skills they use to run the Pentagon and the Post Office? God help us. This is the perfect setup for the biggest wholesale theft of taxpayer money in American history.
Lehman will fail or be sold this week. Next week perhaps Merrill Lynch and/or Washington Mutual. The Treasury keeps saying that the failure of our premier financial institutions will not cost the tax payers much, they continue to be wrong and they continue to pay. The tax payers will have to recapitalize the FDIC soon. It's the cheapest deal they will see, all year.
The average American continues on, as if it is business as usual. Nothing out of the ordinary. What, exactly, would have to happen for them to take notice and demand accountability of those with whom they have entrusted so much, in both the public and private sectors. I don't have a clue. Whatever it is, it hasn't happened yet.