# 033 June 19, 2009
By: Allen Wells
Each day it seems the news and the responses are becoming more bizarre… as a matter fact, I feel like I am living in “Bizarro World”. For example:
Bizarre: Fedzilla is bailing out and taking and ownership interest in General Motors. The President states, “ we have no interest in running an automotive manufacturing company.”
Bizarro World – two GM plants slated for closure have been taken off the list since the Congressional Representatives of those districts made calls to the car Czar to discuss keeping them open.
Bizarre: Headlines state that unemployment slowed in May.
Bizarro World: Actually, unemployment claims dropped in May because more people exhausted their benefits and fell from the unemployment rolls. In addition, some 3 million are slated to exhaust their benefits at the end of the third quarter (September). The President has two options: 1 – extend benefits (again) or 2 – use the statistical drop in unemployment claims to tout “the recession is over and his stimulus plan worked!” Either one is bad for the country.
What really interests me is the only segment of the population gaining jobs is the 55 + age category. The 55 + category gained 224,000 net new jobs in May. The rest of the population lost 661,000! In the past year, the 55 + category has gained 630,000 new jobs and other age categories have lost over 6 million jobs!
Bizarre: China, Brazil and Russia express (publicly) concerns over the stability of the dollar – then reverse their statements with very public response they have confidence in the dollar and have no intention of abandoning their investments in dollar backed currencies as the world reserve currency.
Bizarro World: China, Brazil and Russia in a closed meeting agree to start investing in IMF bonds and to start exchanging currency with each other. Not big news with the mainstream media, but a serious issue for US debt.
Bizarre: The Federal Reserve’s monetary policy over the last fifteen years created a large enough financial bubble to cripple the entire worlds economy.
Bizarro World: The President is pushing legislation to give the FED more power and oversight over all financial institutions.
Bizarre: Last year the Federal Government dug deep into the pockets of the American taxpayer and spent billions to bail out ALL the major banking institutions.
Bizarro World: In 2001 the banking industry spent $5 million lobbying in Washington. In 2008 they spent $20 million… guess it was a good investment (for them).
Bizarre: The President, the Fed and the mainstream media continually tout “green shoots” and a myriad of other ridiculous statistics showing we are at the bottom of this “recession” and that the economy is back on an “upward” swing.
Bizarro World: In Europe the decline in the industrial output of Italy and France are much worse than they were at this point in the 1930’s, and the United Kingdom and Germany are about the same. U.S and Canada declines are very close to the same. Even Japan, coming off somewhat of a recovery is still in a far worse position than they were in the 1930’s.
In addition, the collapse of world trade in the past year is equal to the first two years of the “GREAT” Depression! And… the stock market declines are greater than the first two years of the great depression! That’s right, Green Shoots!
Bizarre: President Obama is the darling of the media and the subject of adulation throughout the United States. If you believe what you see in the mainstream media, it’s as though he is a demi-god that can do no wrong.
Bizarro World: According to a new CBS News/New York Times poll, American’s views on the general state of the country have hit an all time low with 81% saying the nation is on the wrong track. This is the worst ever number for this barometer. I guess I missed that on the Nightly World News!
I could go on, but I won’t. The point is, it is time to use a skill most of us didn’t learn in government schools – logic. Let’s start using our logic skills. If we know 1 + 1 = 2, but a very powerful and influential person keeps telling us 3… it may sound good, and (if we are counting our money) we really would like for 1 + 1 to equal 3, none of what we wish or hope matters, 1 + 1 = 2. That’s it, that’s all. If people are losing jobs every day, virtually every corporation is losing money or profits have dropped drastically, if there are as many foreclosed homes on the market as new homes… things are not looking up.
I’m not complaining, or being pessimistic… I’m just saying…
With warmth and regards (as always),
Allen
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