Ted Rall - AP: Recession, Year 8

Recession? We've been in one since 2000.

Forget the experts. They think telling the grisly truth about the state of the U.S. economy could make things even worse--and they're probably right. But Americans know the truth.

Every major indicator--jobs, wages and cost of living--has trended downward since the dot-com crash of 2000. Since then it has nearly impossible to sell a home, find a job, or get a raise. Rising inflation is tightening the squeeze. Whoever becomes president next year will inherit an economy beginning its ninth year in a downward spiral.

The official inflation rate of two to three percent is a lie, and it has been for years. Presidents Reagan and Clinton ordered the Bureau of Labor Standards to change the way it calculates the Consumer Price Index. Previously they compared the prices of the same items from one year to the next. Now, in order to cheat senior citizens out of cost-of-living increases on their Social Security payments, the government uses a "substitutions" analysis. "The consumer price index assumes that if prices get too high, consumers will start buying cheaper products," reports The San Diego Union-Tribune. For instance, if steak gets too expensive, they will switch to ground beef."

Steve Reed, an economist the Bureau of Labor Standards, freely admits the change makes inflation looks lower than it is. He also admits its motivation: "Even if the CPI was one percentage point higher, it could cost the government hundreds of millions of dollars."- Ted Rall

It's Always Darkest Before the Dawn...of a Economic Depression

The financial system will collapse before "zero-hour" actually occurs. I think we are seeing signs of it in the desperate measures being employed to nationalize companies which trade on market exchanges as private enterprises. There is simply no way to defend the SEC's decision to selectively enforce the prohibition of naked short selling for 17 ‘fragile' financial companies and to not enforce it for the over 5000 other companies which trade on US stock market exchanges. And plans to rescue Fannie Mae and Freddie Mac breathe of a sort of corporate nationalism. Over time this will deal a massive psychological blow to financial markets. They are currently rallying on the sense of relief that the efforts to prevent Fannie and Freddie from dragging US financial markets into the abyss have succeeded and the inevitable day of reckoning has been postponed once again. - The Market Oracle

You know, I am starting to feel the same way about economic news that I was feeling pre-Iraq invasion. I am shouting in the darkness pointing to news our traditional media is ignoring and meanwhile we are fast approaching the cliff. I was right then and I fear I am right again.

Tag: recession