You are hereBlogs / Stephen Lendman's blog / Economic Trouble in 2011

Economic Trouble in 2011


By Stephen Lendman - Posted on 23 January 2011

Economic Turmoil in 2011 - by Stephen Lendman

Wall Street predicts blue skies. Economic recovery will continue. Stocks will deliver double-digit gains. On January 14, the Wall Street Journal's Economic Forecast Survey headlined, "Economists Optimistic on Growth," expecting in 2011:

-- 3.3% GDP growth;

-- unemployment declining to 8.8%;

-- inflation contained at 1.9%;

-- crude oil at around $90 a barrel;

-- improved housing starts in a depressed market;

-- on average, 180,000 monthly jobs created;

-- no Fed interest rate hike until 2012 at the earliest;

-- continued QE II buying of $600 - $900 billion in government bonds; and

-- an overall upbeat sentiment for economic recovery and growth.

Others disagree, including long-time insider/market analyst Bob Chapman, calling current economic policy destabilizing enough to have profound future social costs. Sometime in 2011, he says conditions are "going to be nasty. The handwriting is on the wall," but no one's listening.

On January 20, the Financial Times headlined," US States Face a Fiscal Crunch," saying:

"Undue budget tightening will jeopardize recovery whether applied at the federal level or lower down....The squeeze is not upon them; the federal stimulus is fading away, and the gimmicks are all used up. For state finances, the year of reckoning has arrived, and the timing could hardly be worse."

Global European Anticipation Bulletin (GEAB) analysts are also expect hard times. On January 16, their latest economic assessment headlined, "Systemic global crisis - 2011: The ruthless year, at the crossroads of three roads of global chaos," predicting "entry into the terminal phase of the world before the crisis."

Since 2008, policies undertaken hid economic deterioration instead of resolving it. The present year "will mark the crucial moment when....palliative measures" no longer work, and "the consequences of systemic dislocation....dramatically surge(s) to the forefront."

In 2011, "violent shocks....will explode the faulty safety devices put in place since 2008" and will erode the "pillars" on which the "Dollar Wall" rested for decades until gold no longer backed it. Overall, 2011 will be chaotic. All bets are off. "The crisis ball rolls and everyone holds their breath so it doesn't fall" squarely on them.

Soaring food, energy and other commodity prices will continue. Inflation will rise. It's higher than reported. Tunisia is instructive. Impacted by high food and energy prices as well as unemployment, American and other "godfathers" couldn't prevent street protests collapsing a friendly regime, now struggling to reinvent itself.

America's leadership is eroding. Europe is weak, and BRIC countries (Brazil, Russia, India and China) are not ready to control the global economy so can only "quietly undermine what remains of the foundations of pre-crisis order."

Fragility defines 2011 with many nations "on the verge of socio-economic break-up," especially America and Europe where real unemployment and poverty are rising, social benefits are disappearing, and angry people are beginning to react. The incendiary mix "ha(s) the making of political time bombs."

History often signals warnings "before sweeping away the past." It came in 2008, 2011 to "do the sweeping." Only nations that have "adapt(ed) to the new conditions" will weather them. "(F)or the others, chaos is at the end of the road."

Trends forecaster Gerald Celente says 2011 will be a "wake-up call (for) how grave economic conditions have become" because of ineffective, self-serving, counterproductive solutions. As a result, he sees "crack-up" ahead based on reliable indicators like unemployment, housing, currencies and sovereign debt problems, "all border(ing) between crisis and disaster."

Teetering economies will collapse. Currency wars will continue. Trade barriers will be erected. Economic unions will splinter, and "the onset of the 'Greatest Depression' (will be) recognized by everyone." As governments "extract funds to meet fiscal obligations," working populations will be hurt most, and they'll react publicly, including by hardship-driven crimes, whatever it takes to survive. A "war on crime" will follow, everyone guilty unless proved innocent.

"The closer we get to 2012, the louder the calls will be that the 'End is Near!' " For many, it'll feel that way because of harder than ever hard times.

Economist Michael Hudson's latest article headlined, "The Specter Haunting Europe: Debt Defaults, Austerity, and Death of the 'Social Europe' Model," saying:

"EU policy seems to be for wage earners and pension savers to bail out banks for their legacy of bad mortgages and other loans that cannot be paid - except by plunging their economies into poverty."

If wages decline, high debt burdens "become even heavier....Aside from the misery and human tragedies that will multiply in (their) wake, fiscal and wage austerity is economically self-destructive."

Eventually demand is crushed, turning recessions into depressions. Instead of creditors getting hurt, however, imposed "post-modern neoserfdom....threatens to return Europe to its pre-modern state." Working Americans face the same plight under bipartisan planned austerity, heading a once prosperous country toward third world status, complete with militarized enforcement once anger erupts.

It's the debt and bad government policy stupid, a pig no amount of lipstick can hide, and when it explodes, reverberations more than ever will be felt globally. It's coming, but no one knows when, despite the above forecasts.

The tougher things become, the more deceptive MSM assessments get saying crisis has passed. Claiming better economic times ahead doesn't wash in the face of a global debt crisis, accelerating, not abating. Strapped US states are teetering on insolvency, failing to contain their own debt burdens through draconian austerity budgets on the backs of American workers, people least able to cope.

Obama's solution is less, not more regulation. His January 18 Executive Order (EO) headlined, "Improving Regulation and Regulatory Review" proposed "Flexible Approaches," requiring review of all existing regulations to ease them for powerful corporate interests. It requires federal agencies "adopt (them) only upon a reasoned determination that" benefits justify costs.

After decades of regulatory implosion, Obama plans more, no matter how destructive freewheeling freedom became, especially after global economic crisis took hold, heading for worse hard times, not resolution lifting all boats.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour/.

Tags

Hey kidz!!! Head's up!!! The Feds are pulling a fast one on the States!!!

(clipped headline and article from Reuters)
"State bankruptcy bill imminent, Gingrich says - Legislation that would allow U.S. states to file for bankruptcy will likely be introduced in Congress within the next month, Newt Gingrich, the former speaker of the House of Representatives and a powerful Republican party figure, told Reuters on Friday."

(full story)
http://www.reuters.com/article/idUSTRE70K6PI20110121

More on this Zio-Trick of Economic Warfare on WE THE PEOPLE . . .

(clipped headline and article from New York Times)
"A Path Is Sought for States to Escape Their Debt Burdens - Policymakers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers. Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign."

(full story)
http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?_r=...

Okay, kidz . . . repeat after me . . .

PROBLEM - REACTION - SOLUTION . ..

How to Destroy The Great Experiment of WE THE PEOPLE:

01 - Establish a privately owned central bank that is allowed to print fiat currency which is then loaned out at interest based on the numbers racket of fractional reserve banking and call it The Federal Reserve so it sounds "official"

02 - Establish an unconstitutional extortion racket called the IRS to fleece WE THE PEOPLE to pay for the usury interest on this borrowed money from private central bank

03 - Offer tax incentives to ship U.S. Industry off shore thus decimating working class incomes which in turn decimates State Tax Revenues

04 - Start lots of illegal wars to force the borrowing of even MORE money from the Central bank at usury interest

05 - Bundle home mortgages in Derivatives scheme of Weapons Grade Mathematics to seize the real property of out of work working class Americans

06 - Print even MORE money and loan it to WE THE PEOPLE at interest to bail out the Globalist Banks thus creating a Hyper-Inflation cycle just like that experienced by Germany's Weimar Republic between World War I and World War II

07 - Change the fundamental Game Rules of The Great Experiment and allow the States to declare bankruptcy so that the pension funds of ALL State Employees (Teachers, Firefighters, Policemen, etc. ) can be seized to pay to pay the interest on the loans from the Private Globalist Central Banks.

Repeat "PROBLEM - REACTION - SOLUTION" cycle until the words of Thomas Jefferson become a fulfilled prophecy:

"If the American people ever allow private banks
to control the issue of their money,
first by inflation and then by deflation,
the banks and corporations that will
grow up around them (around the banks),
will deprive the people of their property
until their children will wake up homeless
on the continent their fathers conquered."
- Thomas Jefferson

Watch this while you can kidz . . . it's getting "whack-a-moled" by the Zio-Megaphonies . . .

(link to video approx. 30 minutes)
"The American Dream"
http://www.youtube.com/watch?v=ZPWH5TlbloU

For lots of good info on "You've Been Zio-Screwed By Globalist Banksters 101" check out:

"'The American Dream Film' website"
http://theamericandreamfilm.com/

You kidz may also want to check out Damon Vrabel's surviving work on the Macro-Layer of Economics. I'm not sure why he chose to pull his excellent work on "debunking money".

(link to CSPER YouTube channel video archives)
"Council on Renewal - Renaissance 2.0 Series"
http://www.youtube.com/user/councilonsper#p/u

Then you might want to think about this headline that appeared in newspapers all over the world in 1933:

"Judea Declares War on Germany!"
http://guardian.150m.com/jews/jews-declare-war.htm

This ol' fool from North Cackilackit bets you never heard about this little "detail" in your mandatory THE HOLOCAUST(TM) education/conditioning from school, now did you? . . . ;-)

You sure didn't hear about it in Stephen "Everything In This Film Is True" Spielberg's film "The Last Days" . . . ;-)

(link to video - approx. 2 hours)
"The Last Days of the Big Lie"
http://www.youtube.com/watch?v=-48HQpgQRz0

Then think long and hard about the TRUTH of 9-11, The Federal Reserve, The IRS, The Mortgage Back Security Fraud, The Bank Bailouts, and these Illegal Military Wars and Economics Wars . .

Cui bono? Who benefits???

"Well, what this country is a-coming to,
I sure would like to know,
If they don't do something by and by,
The rich will live and the poor will die,
Doggone, I mean the panic is on."
- "The Panic Is On" by Hezekiah Jenkins, 1931

peace.

Informed Activist

Support WarIsACrime



Donate.








Tweet your Congress critters here.


Advertise on this site!




Facebook      Twitter





Our Stores:























Movie Memorabilia.



The log-in box below is only for bloggers. Nobody else will be able to log in because we have not figured out how to stop voluminous spam ruining the site. If you would like us to have the resources to figure that out please donate. If you would like to receive occasional emails please sign up. If you would like to be a blogger here please send your resume.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.