Gains Are Illusory

Reports on US economic activity may well reflect an increase as the November election nears. This sort of news would boost President Obama's support and garner votes for his Democrat party. And that is precisely why we must be skeptical of the numbers generated (or manufactured of whole cloth) by the Obama administration or even by supposedly independent monitors like the Congressional Budget Office because 1.) Democrats control Congress at the moment and are self-serving and 2.)the CBO can only work with the information it has access to or is given. Hence, the cost of the Obama health care regime remained just under the magic trillion dollars because the books were cooked to enable it to stay that way. There may well indeed be a higher volume of trade in the markets and more homes may sell in the short run as those who still would enjoy a capital gain will want to take advantage of the lower rates before the Bush tax cuts expire at the end of the year. There is no "recovery summer" or for that matter appreciable improvement in the US economy in general as Obama and his flacks contend. The dinosaur media continues to cover up the real rate of unemployment, claiming it to be about nine and one half percent. Some left-wing economist in academe go along with this manipulated number but most in the field believe true joblessness to be over fifteen percent when discouraged workers and the marginally (under)employed are factored in. The other shoe has not dropped in the housing market either with tremendous numbers of homes underwater and foreclosures still at epic rates. There is no reason to believe that will improve and commercial real estate is a basket case as well. We are not going to enter a double dip recession but have never really left the initial recession despite the squandered bailouts and wasted stimulus attempts. All the Obama gang is doing is devaluing the dollar and causing future inflation- perhaps hyperinflation in the Weimar or Zimbabwe mold. As long as Obama remains in office, there is nothing to be optimistic about. Have a good rest of the year.