The US is the greatest country in the world. But, not everyone is being honest with the public about the economy.
Just last week, the administration said the economy was solid and will avoid a recession in 2008. Yet, the dollar has lost 17% since 2001, the housing market is in a free fall, the stock market is off 9% already this year, the federal budget proposal has a $400 billion deficit this year with a $60 billion per month trade deficit and oil is now over $100 per barrel.
Lies, Lies And More Lies
The major investment brokerages are reeling from hundreds of billions in losses from their high risk mortgage backed hedge funds. Yet, these brokerages and the majority of the financial media are telling us to continue buying US stocks - the rally is right around the corner.
Some of the leading financial investors are suggesting brokers that encourage buying foreign stocks or currencies are unpatriotic. But, the truth is that the leading financial investment firms are trying to get the public to buy US stocks to prop up the mess they are in.
The media is even turning a deaf ear to the only presidential candidate that has a clue about economics, Ron Paul, as they focus on Obama who said last week that he will "deal with economy matters in a level headed, pragmatic way" - which means he doesn't have a plan yet and is not willing to debate with Hillary.
Reference Article: Barack Obama Promises Voters That He Will Deal With Economic Matters in a Level-Headed, Pragmatic Way
Hillary has the best economy plan with regard to energy and getting us off foreign oil, but her new plans for health care are going to cost as much in tax increases. So, the stock market and the greater economy does not look like it has a prayer for the next few years.
Reference Article: Hillary's Plan for New Energy
The most patriotic thing to do is to tell the public the gloomy truth about the state of the economy and then reduce government spending, taxes and regulations - and encourage people to SAVE rather then SPEND.
The media, administration and Wall Street are not being honest or patriotic by willing destroying the further of our economy and diminishing retirement accounts with inflation. Eventually, after enough people lose a lot of money, the public will catch on to this, but by the time they do - they will be neck deep in inflation.
The problem with telling the truth, of course, is risking a panic. But, there is also risk in the public realizing they have been had. Once the public loses confidence in the Fed's commitment to protect against inflation, it will be very difficult for the Fed to regain that confidence - as experienced in the 1970's.
Therefore, I fully expect the Fed to slowly start telling the public about the dire economic conditions we are actually in, without causing a panic and without losing faith in the Fed's ability to protect the dollar.
Wall Street, on the other hand, does not care about these things and therefore will probably continue to paint a rosy picture because it is in their best interest to keep the public buying stocks.