What’s really going on with the US economy
It seems like the US stock markets are beginning to recover from their very poor start to 2016. Since its low on February 11, the S&P500 had gained almost 115 points, while the Dow Jones has gained over 950 points. So maybe the correction is over and the bull market will resume once again. After all how can the stock market tank further when the latest US unemployment rate was reported at 4.9%? The economy is doing great, isn’t it?
Well that may not be the case. Of course the bloviating talking heads on the business channels tell us everything is fine and every time that the stock market dips investors should buy more stock, but quite frankly they don’t know what they are talking about. At best they live in a world of economic fantasy and delusion and at worst they may be trying to consciously trying to deceive the public. Fortunately there are economic and financial experts who are actually well acquainted with reality and are not afraid to go against the sheepish consensus, or to tell the truth.
Here are two articles that give contrarian and more pessimist characterizations about what is going on. Paul Craig Roberts writes about why the US economy is unhealthy and how many of the official economic statistics (unemployment and inflation rates, etc.) have been doctored to present a falsely optimist view of the economy. The other article is by David Stockman and he explains why the recent rebound in the stock market is merely a dead cat bounce, and how inevitably the stock market will resume its downward plunge.
On a final note, the one time bash brother and current economic sage Jose Canseco has predicted that by Memorial Day (May 30) the price of gold will be more than $1,500 per ounce. Gold has around $275 to go to fulfill Canseco’s prediction, but if Roberts and Stockman are correct in their economic prognostications than $1,500 per ounce Gold is just the beginning.