Why We Wish McCain was President today (and its not for reasons you think)

They keep using the word 'recovery'...  the filthy excrement at the Fed and in the White House and Congress and corporate media..

Even when admitting today the job market is weak, that bastard Fed Chair tells Congress it is vital to continue the $85billion/month in asset purchases ($1.967 million per SECOND) to keep the market strong and continue the 'recovery'...

And of course the idiots on Capital Hill swallowed it up..

Recovery.. Recovery.. Recovery..

"Look into my eyes... Recovery.. Recovery.. Recovery..."

~ Ahh Protests!-- remember the 'good ole days' when 'W' was in office?

We know we will upset a few people in saying this, and possibly stir a contentious debate but its really a shame McCain did not win election in 2008 and thus be serving a second term today...

Why?

Simple.. Because no way in Hell would anyone allow a Republican President to get away with taking positive credit for an economy that for the last five years have been closer to that of a beached whale!

You would have seen mass demonstrations on the streets by every liberal group under the sun demanding the White House do something to fix the economy and get people back to work.. To stop the wars.. To stop funneling trillions of dollars into that God Damn stock market!

You'd see protesters young and old take to the street in masses like they did in 2003 to protest the ultimate invasion of Iraq by Bush.

You'd see perhaps another 'Million-Man march' by black leaders to protest the fact they've been utterly ignored and their social and economic problems have gotten dramatically worse!  Unfortunately they're either cowards or still in sycophantic awe of their guy...

Maybe you'd see confrontations with police.. Maybe Riots..

Who knows..

Where's the demonstrators calling Obama the same things they called Bush--  'War Mongerer'.. 'Hitler-like'.. 'A God Damn Liar'...  Where's all the passionate defenders of democracy and freedom?  Where's the vicious, cruel signs against a do-nothing still in office?

Its quite hypocritical but what can one do..

Some groups tried to protest the Obama Administration's handling of the economy and being so cozy-cozy with Wall Street.  But then the DNC threatened to take away funding -- no way would they allow liberal groups to embarrass them -- and that was that..

Tell you one thing and you know this to be true..

Absolutely No way in Hell would those who are Awake and see the continual economic decline of this once great nation ever allow John McCain to have a moment's peace; to have his 'legacy',

They would Never allow VP Sarah Palin, someone the political left irrationally despises to the point of blood lust, the opportunity to springboard a supposedly 'successful' two terms in office as a rallying point to run for President herself..

Nope.. you would see social action as you've never seen it before!

You would see television and newspaper coverage non-stop of people being evicted from their homes.. living in cars... children crying as mothers hold them and try to give some comfort..

You'd see interviews with people now homeless and destitute who once had gainful employment..  There'd be stories on the fracturing of the family.. high divorce rates.. suicides..  A disenchanted and detached youth who feel no hope for the future..

You'd see All the news stories that outside US news like Russia Today accurately covers but the mainstream media does not..  And the media didn't choose to protect your sensitive eyes and ears to the truth or fear of dwindling ratings..

~ Where's the anti-war protesters who needed to show the coffins today?

If McCain/Palin ran the show, you'd see the same pro-Fed, pro-wealthy, pro-war policies as Obama.. Its just the media would counter with 24/7 gloom and doom

And the only reason you don't see this depression covered properly and responsively is that the wrong party is in office to go all negative and paint a picture of utter despair.

Especially the first black president...

Would set a bad precedent.  Too politically incorrect.

Sorry, that's just the blunt truth of it...

So we wish a Republican was in office today.

Not because we think things would be better..

It's just that people would be outwardly Far, Far angrier and despondent... Without the bullshit veneer of empty 'hope' clouding the eyes which Obama peddled so well

And maybe, just maybe you might have a populace that was, to borrow a famous phrase, "Mad as Hell and Not going to take it Anymore!"

The Monthly Straw Poll Called Consumer Confidence

Straw Poll definition:  "An unofficial vote taken to obtain an indication of the general trend of opinion on a particular issue"

That fake phony market keeps going up n' up..

All that free Fed money will tend to do that.. As long as the champagne keeps flowing for free, there's always going to be gullets open wide to receive it all.

But there always has to be assigned an official 'reason' each trading day why stocks do as they do.

Ever notice that?  We always need reasons for things..  A sick person can hatchet up his/her family while sparing the loyal dog, Sparky and we all need to understand the reasons behind the madness.

Reasons seem to make everyone feel better.

So today's 'reason' this market rose:  Consumer Confidence -- why haven't you heard??  May reports the highest figures in six years!  See the experts expected a number of 78 and instead, it was 83.7 meaning of course Americans felt better about their financial and economic prospects..

And that was just what the doctor ordered to give trader rats and other sewage the 'feel good' to buy more stocks....

Of course when it drops next month, it will be dismissed then ignored.

Gotta only accentuate the positive.. eliminate the negative..

Of course that 83.7 is utter bullshit..  Shhhhh!  Don't tell them that..  Let it be our little secret between us..  They'd only laugh at you anyways...

By the way, ever wonder how that Consumer Confidence Board comes up with the data it announces each month?    We'll tell you..

The Board takes surveys via telephone to ask people who don't seem to mind being disturbed during the dinner hour, their views of the economy.

And ever wonder many people they poll to get an accurate barometer of the consumption and shopping mood of 310 to 315 million people?

Do they poll 50,000 people?  100,000 people?  500,000 people?

Nahh.. too much work.

They poll 5,000 people.

Based on 310 million Americans, statistically that comes to 0.000016%

That's 16 hundred-thousandths of 1 percent of Americans surveyed...  And we are to believe the market rises 50-60 points off that?

Here's some basic Economics 101 to better explain this evil market:

The price of everything is determined by supply and demand.  No exceptions to the relationship between supply, demand, and price.

Now prices can't be faked but can be manipulated.

It requires either soaking up supply (e.g., the Fed buying $85 billion a month of paper) or increasing demand (e.g., paying $150 for a dozen roses because it's Mother's Day).

And because of all this free money flowing into all the stock markets around the world, its causing buybacks of stock.   Last year alone, $384 billion of shares were repurchased.  In addition there were about $40 billion worth of IPOs (Initial Public Offerings) in 2012.

So to put it simple,  supply of shares is shrinking. and demand for stocks is rising. Money is going into equities, thus creating the growing demand.

There's just too much liquidity in the markets and like food left on the floor overnight, every rat and roach is coming out of the woodwork to get their 'cut'.

And really that's what they are.. let's not sugarcoat it..

Those who profit from the market.. Who make their livelihood daily from it..  from the Fortune 500 big wigs in fancy suits to the common dirt on the trading floor screaming Buy/Sell! all day...  they're vermin.

So we get back to a point we make repeatedly here -- what is the motivation for anyone in any position of power to do anything to make our lives better as long as the barometer that most naively believe represents the state of the economy, is shining strong?

What is the motivation for government to create jobs?  What is the motivation for private sector companies to hire outside of temps and part-timers?

As long as the average John and Jane Dumm believe we're in recovery or worse yet, that 'Ohh, recovery just around the corner.. I can see it.. small gleams.. Its just about to make that turn.. wait for it-- wait for it!' ...

We as a nation have no hope of anything ever improving in reality.

Squeaky wheels always get the grease.

Help Wanted: Seeking those with 'David'-like Spirits (must bring your own slingshot)

We at A&G are a pretty relentless and pugnacious bunch..

We know the easy thing would be to write articles that support the 'recovery' narrative.. Write some complimentary pieces on the Fed and banks..  Who knows, maybe throw in a couple daily stock tips for good measure.

Sure we'd ultimately be complicit when the market does dramatically drop and everyday people lose in days what took years  to accrue, but for the moment, it sure would make us popular with the majority.

That would be the easy way.

Just not our style.   We'll keep shouting that the supposed opulently adorned 'Emperor' is completely utterly bare-bottomed naked with tiny-weeny tally-wacker dribbling about until people begin to see the truth of things.

No problem can ever be addressed if never acknowledged.

You see the market go up, and if that's all you know, you assume all is well.

And the media will spout off for good measure, some stats showing job growth or confidence rising to emphasize the point that all is well.  

The term is 'synergy'-- various forces that appear different but really are similar an working together for the same ultimate goals.

For example when you watch Saturday Night Live which is on NBC and the host is the star of one of NBC's comedies and that actor or actress appears on NBC owned talk shows earlier in the week to promote the show...

That's a form of corporate synergy.

The mainstream media works in concert with Wall Street corporate and governmental interests to keep people calm and docile.  This is not hokum.  Its part of the FCC pledge every network must adhere to in order to renew their licensing.  

No entity under the control of the FCC can push forth any ideologies or agendas that stir others into agitation against the Government or to provide any content or points of view which would incite or encourage rebellion among the populace against the State.

This is why there is really no debate in news beyond 'Left' vs 'Right' and why no information is ever presented to the public to cause fear or a lack of confidence in government to solve problems.

For instance, in Cyprus, a full month after capital controls were put into effect to control how much a depositor could access their own money, the government knows the people do not trust them or the banks and the first opportunity they get, they'll Smartly pull their money out.

So Cyprus officially has decided it will simply keep currency controls in effect indefinitely or until trust in the banks has recovered sufficiently because the nation can't afford people rushing in and protecting their remaining assets.

Sorta chicken/egg.. Which comes first, the trust or the freedom to access one's own money without fascist restriction?

No one in America ever talks about a situation like this becoming a realistic possibility one day if the economy implodes upon itself, and these things usually happen without very much warning.

The media will spend 24hrs a day covering a tropical storm or 4 inches of snow and give a million tips for preparation but never a word uttered when it comes to financial survival.  Show me a media outlet that even suggests you should withdraw all non-essential funds from the banks and that will be the First!

Here's the true state of the US economy and by extension the global economy:  All those paper bills and coinage in one's pocket-- they're backed by nothing.  

They only have value so much as others place upon them.  It is the illusion of value in currency and the faith that those pieces of paper can be used to buy products and services which keeps the game going.

Without it, US dollars are as worthless as Confederate dollars.

The Fed prints and prints for purposes of directly benefiting a select few while giving illusion it is to benefit all and keeping up the lie their #1 goal is job creation.  Its all to benefit the banks but that's specifically why the Fed was chartered in 1907 -- to be the financial backstop for banks while run by banks.

The reason there are no overt bread lines for miles and soup kitchens feeding the masses is due to food stamps, welfare, social security and unemployment.   The number of individuals who receive at least one form of benefit from the government to survive is over 100 million people... 1 in 3.

The reason we haven't collapsed yet as a nation as prices go up on everything from food to clothing to healthcare while wages have stagnated is due to access of credit to fill the fiscal void.

We are a society that has devolved from a nation of savers to living paycheck to paycheck to now biding time before the next paycheck comes via credit cards, payday loans, etc..

As long as government can profit from this, it will never do a single thing ever to fix this brutal hardship.

We hire more people today than four years ago but always in the direction of sellers rather than creators or designers; always jobs available that are far below the education one spent a fortune to acquire in college...  

Always temp jobs with no benefits, protections or security.

And employers are always cutting back those hours.   The new 'full time' laborer works 35hrs a week.  This ensures that no overtime is ever paid to anyone.

Shall we go on?

The goal here is not to sadden or depress.. it is to evoke anger!

Anger at your President... At your political party (D or R, couldn't care less)  Anger at the system-- your boss who exploits.. your government that uses you for their need and gives little in return back..

We've mentioned this before--  the Total and we mean TOTAL outstanding debt among all American citizens i.e. mortgages, car loans, student loans, credit cards, etc equals around $2.76 Trillion.

The Fed has spent over $4.5 Trillion since 2008 to help the banks.

If the Fed paid off every US citizen's debt load so we'd all be at Zero, money which would go to the banks anyways, the Fed would still have and an additional $1.8 Trillion or so to do QE and all their other nefarious schemes...

But we're all kept out of the loop so intentionally by those in power and the media, we as a people don't even know what to demand and have absolutely no unity or common purpose to present grievances and seek redress.

Exactly as they want it.

So we at A&G are facing quite a Goliath..

But this is one fight where 'David' is going to need some help...

Economic Profit via Containment rather than Cure

Weekend is just upon us so let's get right into it...

Two big questions always asked around the proverbial water cooler by those who care about the state of the US economy is why doesn't government do anything to improve the situation, and why is this evil stock market continuing to rise.

We've explained the reasons before but sometimes its better to get the truth from a different source..

The truth is.. well, CNBC's headline says it best:

'Markets Don't Want Strong Economy'

Oh Wow.. please explain...

"Stock markets don't want a strong economy, since a resurgence in growth would mean the end of cheap money and heighten worries about inflation , said Bob Doll, chief equity strategist at Nuveen Asset Management."

Re-read that... let it sink in.

The closest thing to genuinely honest, blunt truth you'll read or hear from a mainstream finance news site..  Continuing..

"(Doll says) So many people want a strong economy. Beware of what you ask for... A strong one will bring the questions, 'When is the Fed done? When is inflation coming back? When is the end of the cycle?...

If your objective is to find jobs for our kids, absolutely you want a strong economy," he added. "But if you want a strong stock market, at least in the near term, you want a good but not great economy"...

Uncertainty is causing companies to hold on to cash or return it to shareholders via buybacks and dividends, but Doll noted, "It's not great for the economy, but great for the stock market.""

And that is why Nothing.. and we mean Absolutely Nothing is done to truly improve the US economy.

Our politicians, Dem and Rep are bought off by Wall Street and they do not want Congress or the President to do Anything to cause those QE spigots to even remotely close up.

And as long as there's just a modicum of growth.. some teensy weensy movement in the direction of improvement, people will be overall content.

Remember the example we often use...

You're standing in a very long line for a very long period of time and it seems like its not moving, so it causes feelings of anger and impatience.  When you see the front of the line move a couple inches, it gives hope of eventual continual progress even though the line didn't move way, way back where you're standing.

Just the glimmer of hope and slight improvement is enough to keep most people waiting in that line....

Same with this economy-- show a stock market go up, unemployment figures go down and a populace kept in the dark as to how statistics are manipulated and you have a lot of people struggling with nothing more than mere belief of things getting better as solace.

Its no different than with medical disease and cancer...

Wonder why there is no cure for cancer and AIDS?

There's really no financial motivation to eradicate the menace.  The corporate profits come from the containment.

All those supposed scientists tirelessly working around the clock... The nonstop cocktails of drugs one ingests simply to control their ailments..  The tens of billions of dollars these charities take in based on public's good intentions... All the profit that comes from Oncology and radiation treatments and hospice,etc...

The last disease which was eradicated was polio-- 50-60 years ago or thereabouts.  And why?   How did this happen?  Simple-- Dr Jonas Salk came up with cure then gave it to the medical community for FREE!

And that's why polio in the western world is pretty much non-existent and why scientists currently can't even cure a common cold!

It all comes down to the profit motive.   Zero incentive.

If we were running this nation, we would punish Investors like there was no tomorrow. Dramatically increase their stock dividend taxes and compel state governments to charge sales tax on stock buy/sell transaction.

We'd also actually enact legislation to get people working and punishing businesses that refuse to hire..  Corps would also have to legally provide medical and dental benefits to temp workers, so to force businesses to stop using them as an escape from hiring real employees and providing living wages and benefits for their workforce...

We'd also establish what we call the 'Nike Tax'- so named because we despise that corporation more than any other.  The 'tax' would be 20% on all goods and services provided by American corporations which did not produce at least 20% of all product on US soil.

In other words, if Nike for instance wants to continue selling $150 shoes to US inner-city children, it better hire American men and women to produce 20% of the shoes and apparel it puts its 'Swoosh' onto, or that pair of shoes now will cost $180 -- the 20% going into the greater unemployment fund.

If they didn't like it, we'd close the US market entirely to that corporation.

If we're good enough to buy the shit, we're good enough to make it...

The status quo would not continue..

There's just no motivation for anyone in a position of power to do anything to truly make our lives better or safer, and too few understand this for there to be the proper groundswell public reaction and response

~ Happy Cinco de Mayo (May 5th)

Rationalizing each trading day's spin.. One lie upon Another

The market is up +64 pts at 14,764 as of 11am

And there's always some rhyme and reason-- here's today's professional version of blowing smoke up people's bums:

"Stocks gained after data showed the number of Americans applying for unemployment insurance fell last week to its lowest level since the early days of the 2007-2009 recession." (Reuters)

Wow!  That's simply terrific.. Yay Government & Private Sector!

Oh course the recession Never Ended but.. you know..

Oh, and wait-- Didn't the Dow go down over 100pts less than 24 hours ago because the private sector only created 141,000 or so new jobs in April in a nation with population of around 315 million?

AP Says, "The number of Americans seeking unemployment aid fell last week to seasonally adjusted 324,000, the lowest since January 2008. The drop points to fewer layoffs and possibly more hiring."

Understand, that's not the number of people NEEDING unemployment assistance like the Millions who can't collect any more benefits...  Or the number of people RECEIVING unemployment assistance now..

Nope..  It is SEEKING.  As in, just recently got fired.. As in people who may have had employment a month ago.. or a week ago..

See how these MF bastard corporate media people twist and manipulate bad news into something good or well, not so bad?   The second sentence is glowing empty optimism about 'possibly' more hiring.

If only 230k private sector jobs have been created in the last two months, Federal and state governments aren't hiring and there's acknowledgment all around the entire global economy is in a slowdown, um.. one quickie Q...

Where are these magical jobs to come from?

So every day the market does something.. really one of five things:  It goes up, down, Way UP, Way Down or finishes pretty much where it started.  

That's it-- Just 5 scenarios.  And the finance media always has rationalizations and explanations to cover each twist and turn as to optimize the positive and minimize the negative.

And if a negative is too big to gloss over, it ends with 'the cavalry is coming' pitch i.e. 'The Fed will save the day folks.. no worries..'

For some 'fun', we thought we'd go back and look at how the stock market did over the last 5 business days starting at Friday, April 26th and more importantly focus on how the media explains it, doing so as concisely as we can...

Now the explanations:

Friday 4/26:  14,715 (+7 pts)

"Stocks closed mixed in a quiet trading session on Friday. Investors were focused on numerous earnings reports during the day and a couple of economic reports that offered a mixed view of the economy.

The final revision to the University of Michigan Consumer Sentiment Index came in well above consensus estimates, but was still down from March. Also, the advanced GDP report showed that the economy grew 2.5 percent in the first-quarter of 2013, but this was less than had been anticipated." (AP)

A bunch of gobbletygook nonsense-- Consumer sentiment continued its descent as less people felt confident a recovery was going to ever reach them and 2.5% GDP growth for a nation of this size is anemic at best.

Investors ignored all the negatives because Bernanke is pumping in that $85B in fresh money every month for they and banks to play with.

Monday 4/29: 14,801 (+95)

"A rally in U.S. stocks was sparked in part by better than expected consumer spending for March. Stocks closed off their best levels of the session, but all of the major averages recorded strong gains, including a near triple digit move in the Dow." (AP)

So the rats and roaches who trade and profit on Wall St knew about consumer confidence supposedly going up based on experts predictions (yet still really worse than March) and decided to wait until Monday to stage a rally??   Can you say 'bullshit'?

Truth is, whoever wrote the market wrap summary hadn't a clue why it went up but one can not keep a job with a news reporting outlet if you don't fill those empty columns with some words now and then.

Tuesday 4/30: 14,835 (+25)

"The U.S. stock market was resilient again on Tuesday. Stocks traded lower in early trade, before rising throughout the rest of the day to finish near session highs... Investors were heartened by a sharp rise in consumer confidence for April and a report which showed home prices continue to jump throughout much of the country." (AP)

Yes, that's not a typo-- the same empty consumer confidence survey was used to explain away not one or two, but THREE straight trading days!

Most people don't read the summary reports and if they do, its instantly forgotten.  All that matters to Ma & Pa trader is the market goes up and any rhyme or reason will do..even the same reason over n over n over..

Wednesday 5/1: 14,700 (-135pts)

"The U.S. stock market was hit hard on Wednesday as investors reacted to a report which showed slowing employment conditions for the month of April. The losses were also likely amplified by profit taking as the Dow and S&P have been hovering near record highs in recent days." (AP)

Utter gloss over!  No mention of the putrid job growth in the public sector... No acknowledgment the economy is at worst, slowly collapsing and at best, in a meandering rut.   Nope.. that 135pt drop was due to 'profit taking'..  That's 'good'..

'See boys and girls, there's Sooo Much Profit to be made in the Stock Market that 135pt drops are nothing...'

~ Demi Moore looking great

And today, 5/2 as of 11am--  A manipulative report mentioned a reduction in those newly unemployed seeking assistance and the ECB copying a page from the Fed by lowering interest rates even more which kills European savers but helps their insolvent Banks (they can lend to each other and borrow from the ECB cheaper) and Investors greatly.

Truth is, most of the time there's no sincere reason it goes up beyond Federal Reserve manipulation, impressive quarterly dividends from a company or sector or a big merger & acquisition between companies.

The rest of the time, the reasoning is as poorly made up as explaining to a spouse why you keep coming up from work at 11pm with lipstick on your collar.

And when the market goes down, its severity is always minimized.

The day you ever read or hear the word 'Sell!' in finance media, is the day it hits pre-Reagan levels i.e. Dow 1000, and even then, we wouldn't hold our breath.

Wall Street-- an evil business run by evil people with evil in their hearts looking to make as much money as possible while separating you from your wealth.

~ 'This is my body paint..  Meoww.. um.. Oink Oink!'