More Signs of Recession

February 5, 2001

Before I get to the deteriorating American economy, I feel duty bound to issue a few final comments about the child king. The man is a disgrace. As if his entire term hasn't been mired in the septic tank from day one, he spends his final 48 hours in office acting like a $%#^&*. The final Air Force One flight resembled an African field after the locusts left. The people's plane stripped bare of towels, ashtrays and everything other than the engines. The people's equipment in the White House vandalized and trashed, to the tune of $200,000, by the Clintonistas. A rich criminal given the best pardon money donated to the Democratic Party can buy. The American Republic is through. It will take more than Bushocio to save it. I am now changing my designation for President Bush from BushLeaguer to Bushocio. Like Pinoccio, Bushocio comes with a lot of strings attached.

It's become apparent, even in the lapdog press, that the American economy is in serious trouble. Being gold-eagle.com readers, you already knew about that, especially if you've been reading my essays. Since I believe that all mainstream information is controlled and manipulated by a global banking elite, the question is why are they hinting at recession, even if they won't use the R word? George Soros, the mouthpiece of the globalists, plainly states the United States is in recession. Alan the Magician waffles and confides that economic growth is near zero. Bushocio and Cheney have made numerous hints the economy is in trouble. More and more mainstream news reports hint of trouble ahead. And finally, even a few court economists are sounding alarmed. Why is that? It certainly isn't because they care about the American people. No, they have their own game plan in mind.

I believe, as the leftist rock star Jackson Browne put it- "they sell us our wars the way they sell us our soap." So, why are "they" suddenly telling us the economy is in trouble? Certainly, it's been a rapid reversal- from economic nirvana to recession within one year. I think they are afraid the popular reaction will get out of control and damage their leadership credibility. The second thing is I believe the elite are seriously afraid their entire fiat fantasy system could come unglued. Personally, I believe they should be afraid of both things.

It's become increasingly obvious the economic system is fraying at the edges. It's difficult to do spin control when Chrysler lays off 20,000, Lucent 10,000 and Wards 37,000 in a few weeks. Alan the Magician is in heavy panic mode. He understands the implications of a recession. Yes, Virginia the entire global economic system is at risk this time. The official polices of the past few decades have guaranteed that fact. There is no doubt in my mind the global elite have noticed each time they meet for one their conferences, the riot police get called out. They sense the mob is getting antsy. They understand the mob will turn on them when the economy sours. And they understand time has run out. Perhaps the global elite once felt they could control the chaos and use it to their advantage, but now I sense they understand a mob stampede will destroy them. Sure, they can put tanks in the streets if they have to. It's just once the illusion ends they will become nobodies and lose their status. Once the real New World Order takes over, think of the downsizing among the petty rulers lording over us now. Talk about unemployment!

I use a combination of subjective analysis, personal experience and Internet research to come to my economic conclusions. The sum total of these again confirms the United States is in economic recession and has been for several months. The recently released January figures merely confirm what I wrote last essay. The fact the official lapdog press is starting to echo what I say also means the obvious can't be hidden anymore. The slowdown is becoming too big, too visible and too plain to see by the common people. So now the elite will admit what we have known for several months. No longer able to hide the reality of recession, they will jump on the band wagon. What utter fools and clowns they are. Anyway, in the personal experience section we have my experience of two days ago. During lunch, I walked to a local bakery and purchased some rolls. I hadn't been down that street or bought rolls this year. What I found was this. The rolls price had gone from $3.50 a dozen to $4 a dozen. Walking back, I found an entire retail block of downtown Portland on Morrison street had been devastated. It was there on December 31st and it was gone on January 30th. The only two stores left on this block are Ross Discount Clothing and a Nordstrom Discount store. The Laura Ashley specialty retailer, the Brookstone(a sharper image knockoff) and a Sunglass Hut store vanished in 30 days. The Pioneer Place Retail Expansion isn't meeting sales expectations. FreightLiner is laying off 1100 people. Face it, we're in recession.

Want more personal stories? The parking garage I work in is where Lucy.com's 95 employees used to park their cars. I say used to because they were hit with an economic neutron bomb in January. The company remains; 70 of the employees don't. The Oregonian runs a story about the layoffs in the morning and I see the people hauling their personal stuff out that afternoon. Guess this is where Mr. GreenSpan got his zero growth figure. In the space of January the American economy has been devastated. In September consumer confidence was 142; this week it was 114. Does anybody know if a 20% drop in consumer confidence qualifies as a bear market? The elite had to acknowledge the economic reality facing the American consumer, otherwise they would lose credibility. Presto: we have a torrent of stories about a recession that's been underway since July. Funny, the elite just noticed it in January.

The American economy is now at the point where things are really going to get nasty. Alan the bumbling magician has made a fundamental error in his reasoning. Alan the incompetent central banker thinks that if he cuts interest rates he will allow people and corporations to service their staggering debt levels. Did you know that American consumer credit debt level is around 1.5 TRILLION dollars? Add to that the debt incurred to buy stock. Add to that the debt incurred as American home owners traded their home equity to Ditech. Our American version of Essau selling his birthright for a bowl of lentil soup. Alan the magician is a fool. He's a fool because he hasn't factored in the unemployment and corporate earnings picture. Alan, Alan, Alan, let me explain something to you. How do people or corporations pay off debt? They do it through disposable income or corporate earnings. Guess what Alan? Noticed anything happening to personal disposable income or corporate earnings in the last six months? HMMMM?

First, corporate earnings. It's great you've cut the interest rate and decreased the carrying costs of debt somewhat Alan. Unfortunately for you, your corrupt financial system and your global banking cabal buddies, it doesn't matter. If anything, I repeat anything, has been made brutally clear in the last six months it's this: CORPORATE EARNINGS ARE UNDER ATTACK AND ARE DECREASING. So now Alan, how are corporations going to repay their massive debt when their ability to repay it is being impaired? Feel free to e-mail Mr. V at gold-eagle.com with an answer if you like Alan. Mr. V tells me that the Fed sometimes hits GOLD-EAGLE.com. Hey, somebody has to tell you central bankers the truth. Keeps you out of trouble and hopefully out of jail too.

Ah, the current situation of the American consumer is also beyond Mr. GreenSpan and his interest rate cuts. The good news is I predict a massive increase in the American consumer's savings rate. The bad news is that it will gut consumer spending and cause a depression. Looks like Alan the magician hasn't factored this into his computer to me. The credit card increase the last 90 days has been to pay energy bills. Let's see here: Alan the magician cuts interest rates to ease debt service costs for consumers and also to entice them to borrow more money. The economic situation makes consumers paranoid about their jobs, ravishes their disposable income with high energy bills and causes them to worry about whether to default on their credit cards. Alan, I think you need to reprogram your economic analysis computer at the Fed. Ever heard of GIGO Alan, garbage in, garbage out?

The upshot of all this is Alan GreenSpan has lost track of the economic pulse of America. His misjudgment will lead to economic disaster. Sorry to doom and gloom for you, but I call it the way I see it. When someone, not drunk or on drugs, can tell me how all this debt will be repaid out of decreasing corporate earnings and personal income I will gladly listen. When someone can tell me how this can be done and maintain economic growth I will listen with stunned amazement. Neither can happen of course. Get ready.

The volume of all the gold ever mined can occupy a cube 63 feet on each side.

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