MIRACLES OF THE NEW NORMAL

I’ve given it some thought and here’s what I come up with. We are IN the NEW NORMAL, in the NEW NORMAL job creation will not go as planned or look like the old normal, which wasn’t like the other normal from 2003-2007 known as “The Jobless recovery”. If THAT 2003-2007 period was called the jobless recovery, what is this one called? “The Disappearing Job Recovery?”

Off shored and shipped out and globalized, many lost jobs are not coming back, and for the new IT and Globalization jobs, we got plenty of competition for those. There is a hungry 3rd world and Asian population thirsty and starving for the good life.

Maybe the stock market is telling us we have “A” Recovery, but it’s job is not to tell us what kind of Recovery it is, that is for us to figure out, because if it ever decides, it wasn’t as great as it seemed, there is plenty of downside to cover and bullishness to be corrected.

Rising costs due to commodities is causing all kinds off FOOD CHAIN price increases, and it’s really in the CPI and PPI no matter what the figures actually show. Back to back near 1% monthly gains in PPI point to near 12% yr/yr Producer inflation, no one is talking, no one is asking the right questions.

Its stupid to argue there is NO inflation. When the stuff that goes into making EVERYTHING is at or near record highs…..if producers cannot pass along the costs it will affect profits.

Healthcare reform? Health Care costs are THROUGH THE ROOF, will policies begin to come down in price? NO

Did we need to extend the Bush tax cuts? NO! Is it important that we shave $100 B a year from government budgets? When we increase them by 15%? When budget deficits are soaring to $1.5 TRILLION and no end in sight. ALL this money has to be borrowed. WILL THE FED continue to be borrower of first and last resort? Isn’t there some limit to this game?

ZIRP policy DISTORTS and DEFILES a free market system and does major damage to allowing money and investment to flow where it is needed the most.

A rising stock market makes us feel better, but it pales to what was lost in value for homeowners. But this is the strategy of the Federal Reserve, they have made it there policy and aim to RAISE ASSET PRICES…..sorry, bull markets are great when they are not MAN MADE. When they are not made from the free market system that spanks bad investment and rewards good investment…..putting magnates on the roulette wheel is not a true fix.

Companies will not hire like before, and with the majority of who lost their jobs still without jobs, a full 2 years plus into recovery, and after a 90% historic stock V shaped rally, all of a sudden companies will splurge on hiring?

What do all those unemployed use for Consumer spending? We have this wonderful recovery but at the same time we now have RECORD amount of Americans NEEDING and getting government assistance. ADD to that anywhere above $75B to maybe $90B added to economy from those deciding to NOT PAY their mortgages (strategic defaults).

At the same time the AVG American has most of their wealth tied up in their homes, the avg price of a home is still falling and sales and construction are VERY NEAR The worst it ever was…..not even the most WILD EYED BULLISH enthusiast could look at housing charts and tell me different. So we printed our way and added debt to an already unmanageable pile and that is how we reach prosperity?

We have a recovery, but you must be one who has a job to appreciate that.

What should be of some importance is have we built something sustainable? If your BEDROCK is a banking system hiding losses or a debt that JUST got shifted from the Banks to the PEOPLE……when accounting standards have changed in such a way as Today’s financial reporting of profits is not anything like previous to the GAO change and suspension of Mark To Market (which then OVER STATES PROFITS)…….when the too big to fail banks are now bigger than ever before……and government just keeps getting BIGGER and SPENDS MORE and MORE we don’t have…..I say we got some work to do.

It has and always has been about NOT PAYING THE PIPER……there’s always another election to push off important topics or real needed change…..or telling it like it is to the American Public, that there are NO FREE LUNCHES….someone has to pay…I guess let the insiders and lobbyists figure it out.

In the meantime, I am marketing a cream that eases the discomfort from those rub marks on your ankles caused by continuous grabbing…..I don’t give a shoot, I’m going to be rich!

The policy of LOW BOTTOM 1% interest rates fueled the last crisis and proved the FED hasn’t MUCH of a clue, and that led to the worst financial crisis since THE GREAT DEPRESSION. Instead of healing from that, instead of letting the market sort things out…..the FED stepped in again with some NEW FINANCIAL ENGINEERING, lowered rates to 0% this time and have held them there for a historic period of time…….adding new never before tested tools like TARP and QE I and 2 and who knows what else. Countless $trillions of stimulus, and gobs of gov’t debt….and all I got was this crummy T-SHIRT!....”CASTLES MADE OF SAND…. SLIP INTO THE SEA……EVENTAULLY”

Duratek