If you followed the news you have heard the economy has been improving.  The "evidence" has been the stock market surge in recent months, with the DOW averages hovering around 13000 coupled with an unemployment rate now approx. 8.5% rather then the 10% it had been.

Although both these figures are comforting we should consider WHY.

First, the DOW increase cannot be attributed to traditional growth which should average 3% over a lengthy time frame, not the 2% or less which we month to month for several years.  The market surge is all about higher profits thanks to greater productivity, outsourcing, and not increasing payrolls. In an improving economy, revenue growth occurs with increased profits, something this current economy is missing.

Second, while 8.5% sounds better than 10%, consider the Labor Dept. measuring stick, which does not provide a hard number of unemployed, sitting above 14 million, a number which does not include agricultural workers who have suffered as much as the number reported.

I offer the following which rarely reported, not to put a damper on your parade, but suggest you do carry an umbrella:

●  If the economy is getting better, then why did new home sales in the United States hit a brand new all-time record
    low during 2011?

●  If the economy is getting better, then why are there 6 million less jobs in America today than there were before
    the recession started?

●  If the economy is getting better, then why is the average duration of unemployment in this country close to an
    all-time record high?

●  If the economy is getting better, then why has the number of homeless female veterans more than doubled?

●  If the economy is getting better, then why has the number of Americans on food stamps increased by 3 million
    since this time last year and by more than 14 million over the last three years?

●  If the economy is getting better, then why has the number of children living in poverty in America risen for four
    years in a row?

●  If the economy is getting better, then why is the percentage of Americans living in "extreme poverty" at an all-time
    high?

●  If the economy is getting better, then why is the Federal Housing Administration on the verge of a financial
    collapse?

●  If the economy is getting better, then why do only 23 percent of American companies plan to hire more employees
    in 2012?

●  If the economy is getting better, then why has the number of self-employed Americans fallen by more than 2
    million since 2006?

●  If the economy is getting better, then why did an all-time record low percentage of U.S. teens have a job last
    summer?

●  If the economy is getting better, then why does median household income keep declining?  Overall, median
    household income in the United States has declined by a total of 6.8% since December 2007 once you account for
    inflation.

●  If the economy is getting better, then why has the number of Americans living below the poverty line increased
    by 10 million since 2006?

●  If the economy is getting better, then why is the average age of a vehicle in America now sitting at an all-time
    high?

●  If the economy is getting better, then why are 18 percent of all homes in the state of Florida currently sitting
    vacant?

●  If the economy is getting better, then why are 19 percent of all American men between the ages of 25 and 34
    living with their parents?

●  If the economy is getting better, then why does the number of "long-term unemployed workers" stay so high?  In
    January, 2009 the number of "long-term unemployed workers" in the United States was approximately 2.6 million.
    Today, that number is sitting at 5.6 million.



Tony Bruno

Here the collapse of the European economy and EU is explained in a mere 2 minutes and 46 seconds.

Pretty good.


Bill Cochrane

We were told it was coming.  Now it's here.  Greece has officially defaulted on its national treasury bonds.  In spite of all the bailouts from the European Union, the International Monetary Fund, and our own Federal Reserve....  Hundreds of billions of dollars in bailouts -- all for naught.

There are more European countries lined up to default as well.  The European Union is collapsing along with the European economy.  There will be very hard times on that socialist subcontinent soon.

Do you think those economic woes will be contained to Europe?  If you do, you are mistaken.  Our own economy is on the edge, and Europe will probably push us over.  Hold on!  We in for a jarring ride this summer.


Bill Cochrane

It's a slow day in the small town of Pumphandle and the streets are deserted.  Times are tough, everybody is in debt, and everybody is living on credit.

A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.  As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

(Stay with this.....and pay attention)

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.

The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

The hooker rushes to the hotel and pays off her room bill with the hotel Owner.

(Almost done...keep reading)

The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.

At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.

No one produced anything.  No one earned anything.  However, the whole town now thinks that they are out of debt and there is a false atmosphere of optimism and glee.

And that, my friends, is how a "stimulus package" works!

Vote 2012!


Paul Brodict

Just a question for you....  Did you ever think three years ago that you would be reading a serious news article today like this one?

Did you?  Really?  Doesn't this say more than I ever could about how low our situation and affairs have fallen?

I hope you're preparing, too.


Bill Cochrane