News & Analysis
US Car Sales Are Up – Is the Recession Really Over?
Auto Sales Rise Puts U.S. on Pace to Best Year Since 2007 U.S. auto sales are on pace for the best showing since 2007 and a third straight year of at least 10 percent gains, only the fourth such streak since the Great Depression, as more-confident buyers return to showrooms. Automakers are adding overnight shifts and cutting workers' vacations to meet demand. – Bloomberg
Dominant Social Theme: Hurray. Things are looking up.
Free-Market Analysis: So sales of American cars are going up. That's great. But we still end up feeling like there's a great big promotion going on.
It's what we call a dominant social theme aimed, perhaps, at reelecting Barack Obama who seems to be the chose candidate of Western power elites.
We notice that Nicolas Sarkozy – a favorite president of the West's military-industrial-Intel complex – lost the French presidency this past week.
Presumably, the powers-that-be don't want to lose their seemingly easily controllable American president as well.
And thus as we have pointed out in the past, the promotional elements of the "great American comeback" are being mixed together. You can see an article we did on this here: "The Obama Recovery Persists At Least Until After the Election ... and Then Watch Out!"
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.
Whatever the reason, we can see the meme. It continues. Now we are told that rising auto sales are evidence that the US economy has turned the corner. To wit:
Sales this year may reach 14.3 million cars and light trucks, equal to the first-quarter pace, according to estimates from 14 analysts compiled by Bloomberg. It would be the best full year since 16.1 million in 2007.
The same analysts in January were expecting sales this year of 13.6 million before Toyota Motor Corp. (7203) and others exceeded projections. "Even if we stay where we are, it's a pretty good year," said Brian Johnson, an industry analyst at Barclays Capital in Chicago, who is predicting full-year U.S. sales of 14.4 million.
Pent-up demand, an improving economy and loosening credit has spurred the better-than-estimated auto sales and helped General Motors Co. (GM), Ford Motor Co. (F) and Chrysler Group LLC to first quarter profits that beat analysts' forecasts even while deliveries fell in Europe.
But no, there is no recovery. Not from our point of view. Monopoly central bank business cycles have turned and the world's economic distortions have not faded away. Banks have not been allowed to go bust and central banks have continued to print vast amounts of money.
As in the 1970s, the cycle must run itself through. Gold and silver must cycle to new highs and paper gold and silver as well. Only once this latter cycle is completed will the monopoly fiat business cycle be feasible (unfortunately) once again.
In the meantime, so much money has been printed and circulated that even a minor uptick in the aggregate economy will cause significant price inflation that will bring formal raises in interest waves. It is not right now a question of an economic recovery but of a business cycle that has perhaps years to go.
The happy talk about "recoveries" or the end of "recession" seems to us just that. It is designed to influence the collective mind to think kindly of President Barack Obama but the truth is that Obama like others before him has merely lurched from one disaster to another.
Conclusion: If he is re-elected, look for more of the same.