Saturday, October 27, 2012

Welcome to the depression good or bad...mostly bad

U.S. economic growth up sharply.

Poor U.S. earnings shake confidence.

These were two actual headlines seen on Google News last night. Excuse me but last report I saw was that company earnings were up 70%. Who's screwing with the facts?

The GDP grew by 2% for the third quarter which would make for an annual rate of 8%. On average and in good years we grow by 6% . So somebody's fudging the numbers here.

On one page of the BBC business news we had the following list of stories:

So on a global scale things aren't looking too hot right now. With Greece in the pits, riots in Spain and the former Italian PM busted for tax evasion is there any cause for celebration? Nobody's said a word about the austerity measures put in place for the UK, Ireland or Portugal.

Forget Frankenstorm the world is headed for a meltdown only nobody will acknowledge it. I think I've said it a thousand time on this blog. You can't cut things to the bone and expect an economy to grow. Workers have had salaries and benefits cut all while local taxes and fees have gone up. Companies keep asking for more in the way of prices but it's not going to the workers.

Spain is a good example. Their unemployment rate just hit 25%. For workers 16 to 24 it's 52%. That by definition is a depression and Greece is in the same sinking boat at the moment.

What is selling to make for this economic growth. Airplanes are being sold to several countries that have ordered them and even if they cancel Boeing makes money. Cars seem to be selling well on the world market which is keeping Detroit and Ohio going. And I'm sure the arms dealers are making a killing at the moment (pun intended).

So at the moment all I can do is sit back and listen to the arteries harden, watch the rain wash out the embankment out front and wonder when I can afford to replace my tattered and worn out clothing. Everything is slowly falling apart and all that can be done is sit and watch a slow moving train wreck. 


S.W. Anderson said...

Oh, come one, Demeur. The U.S. economy is doing a bit better. The second quarter it slid backward, so it has not only recovered some ground but gained a little. That's encouraging. With the holidays and consumer confidence well up, Q4 should do even better. Oh, and the housing industry is doing better than at anything since early 2009

Europe is still dragging its collective tail. That's the result of choosing austerity only. Maybe their leaders will finally wise up

The rain is getting to be bit much. So is the depressing heavy overcast. Bad enough the days are getting short fast, I can do without the extra measure of gloom. At least it's not snow, yet.

BBC said...

I bitch a lot but I just keep rolling along like a wave and enjoy doing the things I do.

Randal Graves said...

Ah, the Krampus season, when people go into more debt whilst gleefully forgetting there ain't no Uncle Sucker ready to bail their ass out.

Demeur said...

I'd hate to have you as a mountain climbing guide SW.

Yeah Billy you'll just float along until the sharks get you.

Randal you can't spend too much if you're living behind a dumpster. And don't forget to dump your old vinyl. They need something to listen to while freezing to death.