The Economy to Fail, Recovery is a Scam!

Have you noticed how news about the U.S. economy is presented? Here are a few examples of the U.S. recovery .


"The disappointing housing data overshadowed strong earnings reports from Apple Inc., Caterpillar Inc., health insurer UnitedHealth Group Inc. and drugmaker Pfizer Inc."
finance.yahoo.com...


So going by the headline you would think housing is down but the good news is that other sectors of the economy are doing well. But you have to look a little deeper!


Apple- Investors are anticipating more growth for the iPhone as the company is due to start to selling the product in China on October 30.
uk.news.yahoo.com...

Caterpillar- Caterpillar reports 53 pct decline in 3rd-qtr profit on slumping sales, lifts profit outlook. Caterpillar has responded by dramatically cutting production and laying off thousands of workers. Since spotting signs of a recession last year, the company has cut 16 percent of its work force, which now stands at just above 94,000.

Analysts say renewed demand from developing countries such as China and Brazil, a weaker dollar that makes the company's products less expensive in overseas markets and rising commodity prices could brighten Caterpillar's prospects next year.
finance.yahoo.com...

Drugmaker Pfizer's 3Q profit jumps 26 percent on cost cuts; more expected with Wyeth deal done. The $68 billion acquisition of Wyeth last Thursday cements Pfizer's position atop the industry, and the combined company is expected to eliminate nearly 20,000 jobs by the time integration is complete.
finance.yahoo.com...


These companies are not increasing sales in the U.S. They are improving their companies by laying off U.S. workers and expanding their market shares overseas! Lets look at some other companies in the U.S.


Troubled domestic automakers see downsizing as main answer to sagging sales.
"By the end of this decade, the goal is three profitable companies. But they would be "smaller companies," McAlinden predicted, "much smaller."
www.automedia.com...#


MILWAUKEE (AP) --Coca-Cola said unit case volume for soda fell 5 percent in North America in the quarter, while volume of still beverages, including teas and juices, was even.

Sales rose in emerging markets including India, China and Brazil. Total international case volume rose 4 percent, which includes 37 percent growth in India and 15 percent in China, where the company has announced a $2 billion investment, along with its bottlers, in the next three years.
finance.yahoo.com...

Home Depot Inc. reported higher-than-expected quarterly earnings as massive cost cuts offset weak sales, but its shares fell as investors found the results disappointing in comparison with those of smaller rival Lowe's Cos. Inc.
www.financialpost.com...


Retailers are faring particularly poorly. As a group, retailers are down 1.6%.

October 14, 2009 7:57 AM EDT

CKE Restaurants, Inc. (NYSE: CKR) announced September same-store sales. September same-sales were down 3.3% compared to a 2008 increase of 1.2%. Same-store sales were also down 3.1% year-to-date (YTD)

October 9, 2009 4:06 PM EDT

Tuesday Morning Corporation (Nasdaq: TUES) reports Q1 sales of $165.9 million, down 4.3% from the $173.4 million reported in the same quarter last year. Same store sales came in at down 5.8%, comprised of a 1.7% decrease in traffic and a 4.1% decrease in average ticket.

October 8, 2009 8:18 AM EDT

Dillard's, Inc. (NYSE: DDS) reports total sales for the month of September were $519.26 million, down 9% from the same period last year. Same store sales fell 6%.

October 8, 2009 8:07 AM EDT

Gap Inc. (NYSE: GPS) reports total sales for the month of September were $1.33 billion, down 1% from the sameBL period last year. Same store sales fell 1%.

October 8, 2009 7:45 AM EDT

Stein Mart, Inc. (Nasdaq: SMRT) reported for the five weeks ended in September 2009 a decrease of 9% in total sales, and 5.4% decrease in comparable store sales. The third quarter ended September 2009 saw a 10.5% decrease in total sales, and 6.9% decrease in comparable store sales.

October 8, 2009 7:41 AM EDT

American Apparel, Inc. (AMEX: APP) announced that September 2009 comparable store sales decreased 15%. Q3 store sales ended September 2009 also decreased 16% compared to the same quarter 2008.

Some Sectors are on the increase. Is that good news or bad news?

Retail gasoline prices moved higher for the seventh straight day.

Applications for home building permits, a gauge of future construction, fell in September by the largest amount in five months. -- a discouraging sign for the housing industry.


So we are a consumer society who's economy is based on consumption. If we are at record unemployment and it is set to get higher with more layoffs planned and companies looking to overseas markets to improve their bottom line, who is going to be doing the consuming, government workers?


finance.yahoo.com...

"Wake Up Washington! China Is Already Dumping the Dollar, Niall Ferguson Says"

"The Dollar Is Dying a Slow Death, Says Niall 'Ascent of Money' Ferguson"

"Niall Ferguson: U.S. Empire in Decline, on Collision Course with China"






[edit on 20-10-2009 by liveandletlive]

[edit on 20-10-2009 by liveandletlive]

Yeah , I think alot of us here know this. Its amazing ....if you watch TV they say the stocks are on the rise...were heading out of the recession...jobs are comming back...bla bla...

so sad that many people are unprepared....and that my friends is a big problem.

reply to post by liveandletlive


OP thanks for pointing this out, earlier in the month I made a point to mention that things diddnt look kosher and that normally our cycles go like this, Unemployment high, no jobs, stock market down, economy bad... But this time it looks different and its confusing and scary.

Unemployment is set to get worse not better. Its a "suckers ralley" right now and those that are in the know are looking to get out. I was supprised to see gasoline on the increase. That will make a bad problem worse!



[edit on 20-10-2009 by liveandletlive]

reply to post by liveandletlive


In the US is no laws regulating how profits are to be posted by companies in the US, they can use numbers of their over sea investments as part of their overall gains.

This is very deceiving and gives a false sense of economic recovery in the US when in actuality their profits are oversea.

reply to post by marg6043


Exactly, and thats what they are doing in combination with "cutting costs". You can increase profits quickly by lowering overhead, ie your employees and associated costs related to employees. Its a big shot in the arm if your numbers are down! You lower workers comp, general liability, health care, employee related taxes ect.

I'll believe a lot of off the mark stuff, but I'm not going to believe for a minute that fat people gave up their coke in the middle of the hot summer (last quarter) - No way!

There's some serious manipulation going on in the markets involving the big corps

Thanks for the thread. S&F

I urge everyone to see Richard Wolff's lecture "Capitalism Hits the Fan"
It just doesn't look pretty.

Just wait until November when the corporate world starts a massive wave of lay-offs so that they can cut their overhead so they can look good at the end of the year and get their big bonuses...

I used to see this all the time when I was corporate. Glad I'm out of that rat race!

it seems the components (corporations & small businesses) of the economic engine are deliberately being ignored by the growth maker Banks, who could - but are not providing - monies to keep the economic engine running.
The banks & wall street financial firms are hoarding the Trillion$ of taxpayer money to play the 100% guaranteed Interest Rate Spreads

i.e. they 'borrow' Zero%-to-one quarter % money from the FED, then buy USTreasures paying 3-4% and pocket the guaranteed profits --- then award themselves outrageous Bonuses because their BottomLine is positive.

On the other hand, the Trillion$ the select 20 or so banks have (in their greedy hands) are actually propping up the ever depreciating dollar ,with the Treasury paper & bonds they buy almost monthly....
but, these financial entities are also buying commodities and other real assets, including the magical stockmarket return to the 10,000 level.

all this activity to the Detriment of the masses, and the economy, and to the future of the social fabric and social order...


of course, one shining point of light is the company Apple Inc, because they have a Best-of-the-Best product... a $259 ipod among other expensive must-haves which the Elites & aspiring elites need... to ascend their heirarchies of power.

as for the masses...

feed them cake & give them Circuses
american idol, reality TV on plazma screens, conspiracy sites on the www,
2012....

reply to post by St Udio


You are right, but with the increasing unemployment and the masses losing their economic support from credit and loans more and more of the masses are finding their hands with nothing to do anymore, their big screen TVs are getting repossessed, truts me they are going to find somebody to blame.



[edit on 20-10-2009 by marg6043]

Originally posted by liveandletlive
Its a "suckers rally"



[edit on 20-10-2009 by liveandletlive]

Actually it's not. It's about huge sums of money being injected into the financial institutions which in turn are investing in large amounts of stock to try and get out of the hole they were in.

It has been working, but for how long? The economy is NOT improving, money may be rolling in, but it's rolling out just as fast and it's gonna crash.

I predict mid first quarter 2010.

reply to post by St Udio


It seems to me they are robbing this country blind. The banks that is. If you notice, most if not all large companies are investing in China. Guess that tells us what they are expecting.

reply to post by skepticantiseptic


I would need to find the source that I read from not to long ago. You remember that recently there was a report about the money managers selling their personal investment shares. I agree that there are some short term moves. But i expect this will draw in investors who dont realize these guys will pull out just as quick as they got in! Besides, If someone is buying, whos selling?

TO the OP-
The economy HAS FAILED, IS FAILED.

the recovery is an attempt at not falling into the same great depression as occurred the last time that Wall street went rogue and the outgoing government bankrupted the country.

Bush regime essentially stole everything in the treasury as he left. gave it to all his pals.

This in turn led to the next administration having to reprint money under the ruleset as it was allowed to do which didn't do much because they failed to execute on convictions of the fraudulent banking activities.

The only bright spot is that we are not in a great depression although the dollar is devalued and the playing field is being leveled to favour all the world instead of just the G countries.

the G countries will continue to run it, but it will be difficult to be a lazy unmotivated person in this new century.

thanks GOP! Thanks George W! You have really taught us a good lesson with your utter failure in governance of America.

Thanks to Obama for not doing what needs to eb done and thanks for only protracting the suffering!

It's a mess, but refuse war as a solution, refuse it and we will all prevail!

My gut totally agrees with the OP, and I have been saying this October would be the tell-tale sign that we all needed.......but........

This "Suckers Rally" is dragging on much longer and more intensely than I would have imagined! October is almost over and things are still looking up!

I have also noticed an overall better attitude from my co-workers and friends. So, either the news and media is working, or a real recovery is in the works??

If the country makes it through this Christmas season (especially Black Friday) without any major setbacks, then I will have to reset my outlook and start to believe some of the optimism!! I know times are hard, but they don't seem to be getting harder, and I expected the opposite by this point in the fall!

We still have plenty of gloom and doom to hang on to though! A cold winter is looming with a threat of Swine Flu, high fuel prices, and a poor Retail season. Things could certainly go sour at any moment! If it doesn't happen pretty quick though, then I might replace my tin foil hat, with my party hat!!

Originally posted by liveandletlive
Its a "suckers ralley" right now and those that are in the know are looking to get out. I was supprised to see gasoline on the increase. That will make a bad problem worse!



[edit on 20-10-2009 by liveandletlive]

I talked to a economists about our economic model some years back and that comment reminded me of that convo.

They said that it has been a suckers rally since they no longer used the gold standard. The entire economy is built on suckers and dreamers. He also said never believe in a massive fail theory, nor a endless bubble. He said the economy works like a old beat up car..sputtering and banging down the road, sometimes seeming to stall, and when you think it is going to stop, it lets out a boom and shoves it down the road further, fueled by suckers and dreamers initially, and once they start, the real money gets in to ride awhile..

Originally posted by liveandletlive
Unemployment is set to get worse not better. Its a "suckers ralley" right now and those that are in the know are looking to get out. I was supprised to see gasoline on the increase. That will make a bad problem worse!
[edit on 20-10-2009 by liveandletlive]

You're entirely correct, they never report how many have slipped off the unemployment rolls onto welfare. The stock market is doing the same thing it did prior to the '29 Crash, oil is up over $80 now. Whats really worse is our government is being run like a Student Council Meeting at the local Junior High School. What's bad for Obama is he's just beginning to lose support of the Suckup Mainstream Media who have covered for him since his campaign began. We're done folks, collect your firewood, food and water, it's gonna be a long hard winter.

reply to post by SaturnFX


I used to think that the economy could only go up and down. I believed that the U.S. was "too big to fail". Im sure most average people think the same way. The problem is history!

In a fiat monetary system, there is no restrain on the amount of money that can be created. This allows unlimited credit creation. Initially, a rapid growth in the availability of credit is often mistaken for economic growth, as spending and business profits grow and frequently there is a rapid growth in equity prices. In the long run, however, the economy tends to suffer much more by the following contraction than it gained from the expansion in credit. This expansion in credit can be seen in the Debt/GDP ratio.

In most cases, a fiat monetary system comes into existence as a result of excessive public debt. When the government is unable to repay all its debt in gold or silver, the temptation to remove physical backing rather than to default becomes irresistible. This was the case in 18th century France during the Law scheme, as well as in the 70s in the US, when Nixon removed the last link between the dollar and gold which is still in effect today.

Hyper-inflation is the terminal stage of any fiat currency. In hyper-inflation, money looses most of its value practically overnight. Hyper-inflation is often the result of increasing regular inflation to the point where all confidence in money is lost. In a fiat monetary system, the value of money is based on confidence, and once that confidence is gone, money irreversibly becomes worthless, regardless of its scarcity. Gold has replaced every fiat currency for the past 3000 years.

www.kwaves.com...

Its the fact that no fiat system has ever suvived coupled with the fact that it would be the U.S. dollar that would fail that scares me. Other currencies would keep going and the world wouldnt "end". Just our world! The U.S. has had a nice run. A lot of people in this country are to young to remember that we are capable of suffering. Just because we havent done it lately doesnt mean we wont.



[edit on 20-10-2009 by liveandletlive]

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[edit on 20/10/09 by DontTreadOnMe]

I think some of you have been duped by the 40 year old act to long. Our economy has changed for-ever.... Our government has set forth the motions for this country to be forever government dependant in all private sectors. This was a wealth swap. A power play by the government to allow for creations of more government control over uncontrolled sectors and the development of new government branches in the green sectors and finacial sectors as well. Re-covery....? From what? There was no failure there was a plan made by the government as a whole not just Republican and Democrats and followed out to the very dots and T's crossed in paying off unions to get out of certain manufacturing sectors left in America and to set forth the payoff of the banks and other holding companies to get ready for the switch over to the global currancy and such. I'm sorry if this sounds "too far out there" for you to believe but you better get use to believing far out things cause the best is yet to come.