The recovery that is not: How Obama is lying to you

obama is the mack daddy of liars

obama is the mack daddy of liars

“We’ve lost a couple of decades of demand in the U.S. economy because of the de-leveraging that’s happened,” Wall Street observer James Dale Davidson says.

America has spent too many years focused on the service industry by design to de-industrialize the economy thus making it easier for the process of bankruptcy. It has been so many years that the US has not produced even close to a fraction of what it once did that there isn’t much of a manufacturing base left. Meanwhile, both its federal government and its banks had been creating so many new dollars that the world has been flooded by them. Then came crunch time which the entire world is feeling now.

“The stated plan was that different parts of the world would be assigned different roles of industry and commerce in a unified global system. The continued preeminence of the United States and the relative independence and self-sufficiency of the United States would have to be changed… in order to create a new structure, you first have to tear down the old, and American industry was one example of that. Each part of the world will have a specialty and thus become inter-dependent, he said. The US will remain a center for agriculture, high tech, communications, and education but heavy industry would be “transported out.” Dr. Richard Day to a meeting in March 1969 that American industry will be sabotaged and shown to be uncompetitive

Asians are looking at American wondering how it will continue to buy their products if the creative money creation process is curtailed. The Asians aren’t looking at buying American products as there’s too little of interest on the American’s shelves and their economies are geared to selling to America, not buying from.

It’s a problem with no quick answers. With an economy one tenth of that of our southern neighbor, Canada is along for the ride. Canadian economist and Kennedy advisor John Kenneth Galbraith noted in his 1975 book “Money: Whence It Came, Where It Went,” that what the economy does next will be different from that of the recent past. If you can figure out what’s next ahead of the crowd you can get rich, and maybe even survive the next financial crunch.

Davidson: Obama White House Is Lying to You

Monday, 18 Jan 2010 By: Julie Crawshaw

Author, investor and longtime Wall Street observer James Dale Davidson says our government is lying to us: There is no genuine economic recovery happening.

“I think what we have seen … is a simulated recovery which has been generated by the government faking it in a lot of different ways,” putting out what he calls statistical falsehoods on economic numbers “to make it seem that the economy is stronger than it is,” Davidson told Newsmax.

For example, calculations for the recently released unemployment figures released failed to include the fact that the Bureau of Labor Statistics had undercounted the number of unemployed people in 2009 by 824,000 persons.

“They’re supposed to be doing a benchmark adjustment … and if they do, the unemployment rate will shoot up even higher,” Davidson says.

“A lot of the supposed improvements have been faked by the government,” Davidson says.

Davidson believes the government secretly used quantitative easing as an excuse to funnel money into U.S. capital markets.

“It’s not a coincidence that the market started to rally in March at the same time they announced they were going to do the quantitative easing,” he observes.

“In my view, it’s all created by the government as a hoax.”

The whole administration is based on one lie after another, he says.

As revealed in recently uncovered e-mail correspondence with AIG, Treasury Secretary Timothy Geithner effectively told the huge insurer to violate U.S. securities laws.

“I think the way he (Geithner) handled the AIG bonuses last year is a very telling story,” Davidson notes, referring to the media uproar over the bonuses that distracted the public’s attention from the billions of dollars that were being poured into AIG.

The uproar over those bonuses kept people from getting excited over the real issue, Davidson notes. Investors can get excited about only so many AIG-related scandals at once, he says.

At some point, Davidson believes that AIG’s having violated practically every securities law there is will be revealed.

“They’ve done everything they can to create a false impression of stability and strength in a rebounding economy, and I can understand that from the point of view of public policy they want people to think the economy is strong,” he says.

“But if you hoax people into going out and spending money on false assumptions … a lot of people are going to lose a lot of money,” he points out.

Davidson believes all investors should hold some gold in their portfolios because the dollar is on its way out as the world’s reserve currency.

“The dollar is cooked,” he says.

“Our ratios are much worse than Brazil was 15 years ago when they had hyperinflation. When you have this kind of spending out of an empty pocket, there’s never anything good as a result. You can’t go on forever spending money you don’t have.”

“It has to stop, and when it does, you’ll be glad you have some gold.”

The heart of the matter, Davidson points out, is that there are huge, gaping holes in everyone’s balance sheets.

“We’ve lost a couple of decades of demand in the U.S. economy because of the de-leveraging that’s happened,” he says.

You can read the full article from NewsMax.Com

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