Friday, July 1, 2011

Why Are We Still in a Recession?

Technically we are not, but it sure feels like it to most Americans.  You get plenty of answers if you google it, but I got a bit of an esoteric explanation, somewhat influenced by Boom Bust Blog (link on the right).  Basically, I think back to every great boom in recent American history, starting with the junk bonds, stocks in 2000, housing, and most recently, silver.  The natural order is simple: something fundamentally sensical gets blown out of proportion.  One tipping point later, everyone looks around shocked and say by golly how could this have happened.  As always, mainstream economists are bent over with their pants around the ankles as Mr. Market has his way with them.

But something went wrong in 2008.  The banks, who were in the epicenter of the bust, came out fine.  Shit, a few years later, they somehow recovered better than Joe Schmoe who still cannot get a job he qualifies for.  The truth is unemployment barely budged while corporate profits suggest a new bull market.

At this point if you want populist anger, google it elsewhere.  As Americans we get what we deserve.  We cast our lot with deregulation and capitalism; we shouldn't be surprised when the richest and most powerful covertly take everything over.  Really, my point is this: without Fed and government intervention, the financial industry should have collapsed.  Would that have triggered a true capitalist meltdown?  Well shit maybe whatever we got ain't the answer if you gotta bail it out every few years.  But then again, how are we gonna lecture the rest of the world if we can't get our shit together?

But none of that happened.  Instead, we have golem banks, like that X-Files episode when that girl uses her Jew power to bring her dead husband back to life as a golem.  But guess what, HE AIN'T ALL THERE.  Same with these banks.  We fucked with the natural order of things, the nature of free market itself.  I won't forecast doom and gloom; but quantitative easing is proof enough of what I'm saying.  Imagine a dying patient requiring constant blood transfusions.  That's what we have been doing for the past 2 years and the cost is prohibitively high.  The only reason the rest of the world lets us get away with it is every other currency somehow sucks more cock.
1. Euro...LOL
2. Yen is in the same boat as the dollar, but used in a country where God hates them.
3 Yuan...Not freely floated.  Also has a tendency to go around disappearing people.
4. Gold...Khadaffi tried this.  Look at him now.
5. Silver???  I'm in the dregs.

So why are we still in a recession?  Cause we are spending every ounce of our energy trying to bring back a dead husband that's why.  Really where's Darwin when you need him?