News & Analysis
The Obama Recovery Persists At Least Until After the Election ... and Then Watch Out!
U.S. Manufacturing Grows at Fastest Pace in a Year ... Manufacturing grew in April at the fastest pace in almost a year, propelled by a pickup in orders that signaled factories will remain a source of strength for the U.S. expansion. The Institute for Supply Management's factory index climbed to 54.8 last month, exceeding the most optimistic forecast in a Bloomberg News survey and the best reading since June, the Tempe, Arizona-based group's report showed today ... The world's largest economy may pick up after slowing in the first three months of the year as the increase in bookings indicates American assembly lines will keep churning out more goods. Combined with a report showing manufacturing in China also accelerated, the figures sent the Dow Jones Industrial Average to the highest level since 2007 as the data eased concern global growth was slackening. – Bloomberg
Dominant Social Theme: Wow, America's had a tough time, but now things are getting better.
Free-Market Analysis: Just in time for Barack Obama's re-election, as we've pointed out previously, the entire American economy is taking a tremendous uptick.
We know this is so because we read about it in the mainstream media. It actually appears to us to be part of a larger elite dominant social theme – a kind of promotion elevating the chances of Barack Obama's re-election.
Is Barack Obama such an important man? We believe that the US – and the world, really – is run by larger, shadowy mercantilist interests that utilize government for their own purposes.
The monetary mechanism itself is central banking and the trillions in cash these entities throw off. At the beginning of the past century there were only a few central banks and today there are about 150.
We would make the case that this evolution is not a market-based one and that this financial formula is actually part of a larger, conspiratorial activity to set up what will be for all intents and purposes world government.
Barack Obama MAY be integral to the next step of this effort as he has both a Muslim and Western background. In our view he is a kind of Chosen One, protected by the US military-industrial complex and trained and pointed toward power by Western Intel interests that have in mind using him.
The powers-that-be are evidently and obviously building an Islamic crescent arc in the Middle East by destabilizing secular governments and establishing moderate (or not so moderate) Islamic governments.
Perhaps the next step of Obama's (directed) history has to do with positioning him to become a unifier of East and West, bringing global government closer. To this end, he is to stop the West's incessant war-faring and to preside over at least a partially resurgent economy.
The economic side of the ledger, especially, is somewhat uncontrollable. In the US alone up to 30 percent of the population is unemployed or underemployed. But it is not the job of the bought-and-paid-for media to present such unpalatable perspectives.
Right now a positive argument is sought. And it is being provided. Here's some more from the Bloomberg article excerpted above:
Manufacturing "continues to be a bright spot in the recovery," said Ellen Zentner, a senior U.S. economist at Nomura Securities International Inc. in New York. "We have yet to see a drop-off in foreign demand for U.S.-manufactured goods, and that comes despite all the concerns of a slowdown in the global economy."
The Dow gained 0.5 percent to close at 13,279.32 at the close in New York. The yield on the benchmark 10-year Treasury note rose to 1.95 percent from 1.91 percent late yesterday ...
Overseas demand for U.S. made-goods also risks fading as global growth slows. Spain's economy contracted in the first quarter, putting the euro region's fourth-largest economy into its second recession since 2009. The U.K. economy shrank 0.2 percent in the first quarter after contracting 0.3 percent in the prior three months as Britain slid into its first double dip recession since the 1970s.
"The global economy is uneven," John Faraci, chairman and chief executive officer of International Paper Co. (IP), said during an April 27 earnings call. "We got a recession going on in Western Europe. The growth has slowed in China and India. And North Americas is a recovering but far from fully recovered economic environment."
Finally, in this last paragraph, some common sense. Here are the facts, as we understand them. Central banks inflate by printing money – causing first booms and then busts. We are in a terrible bust phase today where monopoly fiat money has all but died.
Instead, as in the 1970s, there is a money metals bull market that is climbing irrepressibly higher. It began around 2000.
There is no recovery. There cannot be – no fiat money recovery, anyway, in the artificial economy of a central banking world. If there is an uptick right now it will only be subsumed by central bank interest rate hikes.
Much too much money has already been printed and must be absorbed by the larger, global economy before the distortions of the past century or so are entirely wrung out. The current economic cycle has got between three and five years to run before a "real" modest recovery begins.
But it probably won't get that far. The powers-that-be are fighting so hard to retain the current, fraudulent economic situation that it is difficult to see how the world's finances can really be unwound.
Until the worldwide banking bubble is actually allowed to subside, economies will remain distorted and any "recovery" shall be short-lived indeed.
Whether it is an Argentine deflation, a Chinese collapse, an EU re-recession or the subsiding of the supposed American recovery, there will be something that presents itself soon enough that will derail the merry talk and remind sober people where the World Really Stands.
Sorry. We don't buy the happy talk. Obama can receive all the plaudits that the elites want to pile on him for one reason or another but even directed history has its limits.
Conclusion: The world is not out of the woods. The system is a phony one. Don't believe the phony narrative. Take care of yourself and your loved ones as best you can.