There seems to be a peculiar phenomenon this year in the American economy. In the midst of “recovery” and “job growth,” young people are unemployed for great stretches of time. It seems like the Great Depression, but we are assured it has nothing to do with that. Somehow, employment is both up AND down. (I suggest a wander through ShadowStats to see how the official employment numbers are obtained.) Sadly, the unemployment numbers, if worked through the rules used during the Depression, tote out to somewhat less, but near, the unemployment rate during the Great Depression.
David Stockman offers a gloomy discussion of the Death Throes of a Bull, where he demonstrates that the recession of 2007 was papered over to make for a synthetic recovery that lasted some eight years. This recovery had job growth, but prolonged unemployment strings – for years, for some young persons. There is no ladder to climb. Graduates from college are offered unpaid internships, and live at home for much of their 20’s.
The re-discovery of recession will lock in what the boom did – concentration of wealth into the hands of a few.
Debt is back up – “Keynesian Cool-Aid drinkers, the US economy is doing “just fine” because job growth is robust, real wages are rising and the consumer is fixing to commence a shopping spree at any moment now.” (ref) China’s Red Ponzi is ticking – there is no substance behind much of the boom.
“China is not a $10 trillion growth miracle with transition challenges; it is a quasi-totalitarian nation gone mad digging, building, borrowing, spending and speculating in a magnitude that has no historical parallel.
So doing, It has fashioned itself into an incendiary volcano of unpayable debt and wasteful, crazy-ass overinvestment in everything. It cannot be slowed, stabilized or transitioned by edicts and new plans from the comrades in Beijing. It is the greatest economic trainwreck in human history barreling toward a bridgeless chasm.”
Their last hope is that they can shake the loose change out of the pockets of America by calling in their debt. Good luck to ya.
Idle frustrated youth are not a good commodity in a weak economy. The generation after the WWI expressed its frustration in Fascism worldwide. What’s coming here?