Economy in for a Long Dark Period – Here’s How to Survive
By: Chris Blasi
Thursday, 5 August 2010
The success of the multi-year machinations of the U.S. Government and the Federal Reserve’s attempts to manage the fiscal crisis can best be summarized in a single word – and that word is ephemeral – yes, ephemeral! This beautifully succinct word, ephemeral, is defined as “lasting for only a short period of time and leaving no permanent trace.” Yes, indeed, what better word is there to describe the Government’s so-called rescue plan than ephemeral – here today and gone tomorrow – and without a trace of lasting benefit!
While I tend to be short on words and to the point, as my previous articles* will attest, trying to achieve both accuracy and brevity on this subject was difficult to achieve but what follows should provide a reasonably fair and complete assessment.
Myriad of Statistical Measurements are Being Manipulated and Massaged
There have been a myriad of statistics presented by analysts attempting to quantify the short- and long-term impact of the economic and fiscal policies deployed over the last couple of years. Gauges, such as the contribution to GDP expansion in relation to government spend, earnings growth of publically traded companies, the status of bank balance sheets, etc., have all been factored into some sort of scorecard for the state of the economy. In the segregated and insulated world of government policy makers, Fed officials, well-connected bankers and other sundry insiders, these manipulated and massaged statistical measurements have been designed to serve as the basis for public pronouncements as to how we are to see the world around us. Unfortunately, due to a dearth of inquisitive and competent financial journalists, the alliance of powers at the global economic helm have been free to make erroneous and unchallenged declarations such as the sighting of “green shoots”, or an “officially declared” emergence from recession, or “officially documented” resumption of sustained economic growth. In the real and tangible world, however, the statistics don’t support reality.
The Blind Begin to See