Obama’s Cockeyed Optimism: “We are starting to see glimmers of hope across the economy.”

Retail sales fell in March as soaring job losses and tighter credit conditions forced consumers to cut back sharply on discretionary spending. Nearly every sector saw declines including electronics, restaurants, furniture, sporting goods and building materials. Auto sales continued their historic nosedive despite aggressive promotions on new vehicles and $13 billion of aid from the federal government. The crash in housing, which began in July 2006, accelerated on the downside in March, falling 19 percent year-over-year, signaling more pain ahead. Mortgage defaults are rising and foreclosures in 2009 are estimated to be in the 2.1 million range, an uptick of 400,000 from 2008. Consumer spending is down, housing is in a shambles, and industrial output dropped at an annual rate of 20 percent, the largest quarterly decrease since VE Day. The system-wide contraction continues unabated with with no sign of letting up.

Conditions in the broader economy are now vastly different than those on Wall Street, where the S&P 500 and the Dow Jones Industrials have rallied for 5 weeks straight regaining more than 25 percent of earlier losses. Fed chief Ben Bernanke’s $13 trillion in monetary stimulus has triggered a rebound in the stock market while Main Street continues to languish on life-support waiting for Obama’s $787 billion fiscal stimulus to kick in and compensate for falling demand and rising unemployment. The rally on Wall Street indicates that Bernanke’s flood of liquidity is creating a bubble in stocks since present values do not reflect underlying conditions in the economy. The fundamentals haven’t been this bad since the 1930s.

The financial media is abuzz with talk of a recovery as equities inch their way higher every week. CNBC’s Jim Cramer, the hyperventilating ringleader of “Fast Money”, announced last week, “I am pronouncing the depression is over.” Cramer and his clatter of media cheerleaders ignore the fact that every sector of the financial system is now propped up with Fed loans and T-Bills without which the fictive free market would collapse in a heap. For 19 months, Bernanke has kept a steady stream of liquidity flowing from the vault at the US Treasury to the NYSE in downtown Manhattan. The Fed has recapitalized financial institutions via its low interest rates, its multi-trillion dollar lending facilities, and its direct purchase of US sovereign debt and Fannie Mae mortgage-backed securities. (Monetization) The Fed’s balance sheet has become a dumping ground for all manner of toxic waste and putrid debt-instruments for which there is no active market. When foreign central banks and investors realize that US currency is backed by dodgy subprime collateral; there will be a run on the dollar followed by a stampede out of US equities. Even so, Bernanke assures his critics that “the foundations of our economy are strong”.

As for the recovery, market analyst Edward Harrison sums it up like this:

This is a fake recovery because the underlying systemic issues in the financial sector are being papered over through various mechanisms designed to surreptitiously recapitalize banks while monetary and fiscal stimulus induces a rebound before many banks’ inherent insolvency becomes a problem. This means the banking system will remain weak even after recovery takes hold. The likely result of the weak system will be a relapse into a depression-like circumstances once the temporary salve of stimulus has worn off. Note that this does not preclude stocks from large rallies or a new bull market from forming because as unsustainable as the recovery may be, it will be a recovery nonetheless.1

The rally in the stock market will not fix the banking system, slow the crash in housing, patch-together tattered household balance sheets, repair failing industries or reverse the precipitous decline in consumer confidence. The rising stock market merely indicates that profit-driven speculators are back in business taking advantage of the Fed’s lavish capital injections which are propelling equities into the stratosphere. Meanwhile, the unemployment lines continue to swell, the food banks continue to run dry and the homeless shelters continue to burst at the seams. So far, $12 trillion has been pumped into the financial system while less than $450 billion fiscal stimulus has gone to the “real” economy where workers are struggling just to keep food on the table. The Fed’s priorities are directed at the investor class not the average working Joe. Bernanke is trying to keep Wall Street happy by goosing asset values with cheap capital, but the increases to the money supply are putting more downward pressure on the dollar. The Fed chief has also begun purchasing US Treasuries, which is the equivalent of writing a check to oneself to cover an overdraft in one’s own account. This is the kind of gibberish that passes as sound economic policy. The Fed is incapable if fixing the problem because the Fed is the problem.

Last week, the market shot up on news that Wells Fargo’s first quarter net income rose 50 percent to $3 billion pushing the stock up 30 percent in one session. The financial media celebrated the triumph in typical manner by congratulating everyone on set and announcing that a market “bottom” had been reached . The news on Wells Fargo was repeated ad nauseam for two days even though everyone knows that the big banks are holding hundreds of billions in mortgage-backed assets which are marked way above their true value and that gigantic losses are forthcoming. Naturally, the skeptics were kept off-camera or lambasted by toothy anchors as doomsayers and Cassandras. Regrettably, creative accounting and media spin can only work for so long. Eventually the banks will have to write down their losses and raise more capital. Wells Fargo slipped the noose this time, but next time might not be so lucky. Here’s how Bloomberg sums up Wells’ situation:

Wells Fargo & Co., the second biggest U.S. home lender, may need $50 billion to pay back the federal government and cover loan losses as the economic slump deepens, according to KBW Inc.’s Frederick Cannon.

KBW expects $120 billion of “stress” losses at Wells Fargo, assuming the recession continues through the first quarter of 2010 and unemployment reaches 12 percent, Cannon wrote today in a report. The San Francisco-based bank may need to raise $25 billion on top of the $25 billion it owes the U.S. Treasury for the industry bailout plan, he wrote. …

Details were scarce and we believe that much of the positive news in the preliminary results had to do with merger accounting, revised accounting standards and mortgage default moratoriums, rather than underlying trends,” wrote Cannon, who downgraded the shares to “underperform” from “market perform.” “We expect earnings and capital to be under pressure due to continued economic weakness.”

What happened to all those nonperforming loans and garbage MBS? Did they simply vanish into the New York ether? Could Wells sudden good fortune have something to do with the recent FASB changes to accounting guidelines on “mark to market” which allow banks greater flexibility in assigning a value to their assets? Also, Judging by the charts on the Internet, Wells appears to have the smallest “ratio of loan loss reserves” of the four biggest banks. That’s hardly reassuring.

Paul Krugman takes an equally skeptical view of the Wells report:

About those great numbers from Wells Fargo…remember, reported profits aren’t a hard number; they involve a lot of assumptions. And at least some analysts are saying that the Wells assumptions about loan losses look, um, odd. Maybe, maybe not; but you do have to say that it would be awfully convenient for banks to sound the all clear right now, just when the question of how tough the Obama administration will really get is hanging in the balance.

The banks are all playing the same game of hide-n-seek, trying to hoodwink the public into thinking they are in a stronger capital position than they really are. It’s just more Wall Street chicanery papered over with vapid media propaganda. The giant brokerage houses and the financial media are two spokes on the same wheel gliding along in perfect harmony. Unfortunately, media fanfare and massaging the numbers won’t pull the economy out of its downward spiral or bring about a long-term recovery. That will take fiscal policy, jobs programs, debt relief, mortgage writedowns and a progressive plan to rebuild the nation’s economy on a solid foundation of productivity and regular wage increases. So far, the Obama administration has focused all its attention and resources on the financial system rather than working people. That won’t fix the problem.

Deflation has latched on to the economy like a pitbull on a porkchop. Food and fuel prices fell in March by 0.1 percent while unemployment continued its slide towards 10 percent. Wholesale prices fell by the most in the last 12 months since 1950. According to MarketWatch, “Industrial production is down 13.3% since the recession began in December 2007, the largest percentage decline since the end of World War II”….The capacity utilization rate for total industry fell further to 69.3 percent, a historical low for this series, which begins in 1967.” (Federal Reserve) The persistent fall in housing prices (30 percent) and losses in home equity only add to deflationary pressures. The wind is exiting the humongous credit bubble in one great gust.

Obama’s $787 billion stimulus is too small to take up the slack in a $14 trillion per year economy where manufacturing and industrial capacity have slipped to record lows and unemployment is rising at 650,000 per month. High unemployment is lethal to an economy where consumer spending is 72 percent of GDP. Without debt relief and mortgage cram-downs, consumption will sputter and corporate profits will continue to shrink. S&P 500 companies have already seen a 37 percent drop in corporate profits. Unless the underlying issues of debt relief and wages are dealt with, the present trends will persist. Growth is impossible when workers are broke and can’t afford to buy the things the make.

The stimulus must be increased to a size where it can do boost economic activity and create enough jobs to get over the hump. Yale economics professor Robert Schiller makes the case for more stimulus in his Bloomberg commentary on Tuesday:

In the Great Depression … the U.S. government had a great deal of trouble maintaining its commitment to economic stimulus. ‘Pump- priming’ was talked about and tried, but not consistently. The Depression could have been mostly prevented, but wasn’t…. In the face of a similar Depression-era psychology today, we are in need of massive pump-priming again.

It would be a shame if we are so overwhelmed by anger at the unfairness of it all that we do not take the positive measures needed to restore us to full employment. That would not just be unfair to the U.S. taxpayer. That would be unfair to those who are living in Hoovervilles…; it would be unfair to those who are being evicted from their homes, and can’t find new ones because they can’t find jobs. That would be unfair to those who have to drop out of school because they, or their parents, can’t find jobs.

It is time to face up to what needs to be done. The sticker shock involved will be large, but the costs in terms of lost output of not meeting either the credit target or the aggregate demand target will be yet larger.”2

Even though industrial production, manufacturing, retail and housing are in free-fall, the talk on Wall Street still focuses on the elusive recovery. The S&P 500 touched bottom at 666 on March 6 and has since retraced its steps to 852. Clearly, Bernanke’s market-distorting capital injections have played a major role in the turnabout. Former Secretary of Labor under Bill Clinton and economics professor at University of Cal. Berkeley, Robert Reich, explains it like this on his blog-site:

All of these pieces of upbeat news are connected by one fact: the flood of money the Fed has been releasing into the economy…. So much money is sloshing around the economy that its price is bound to drop. And cheap money is bound to induce some borrowing. The real question is whether this means an economic turnaround. The answer is it doesn’t.

Cheap money, you may remember, got us into this mess. Six years ago, the Fed (Alan Greenspan et al) lowered interest rates to 1 percent…. The large lenders did exactly what they could be expected to do with free money — get as much of it as possible and then lent it out to anyone who could stand up straight (and many who couldn’t). With no regulators looking over their shoulders, they got away with the financial equivalent of murder.

The only economic fundamental that’s changed since then is that so many people got so badly burned that the trust necessary for consumers, investors, and businesses to repeat what they did then has vanished… yes, some consumers will refinance and use the extra money they extract from their homes to spend again. But most will use the extra money to pay off debt and start saving again, as they did years ago….

I admire cockeyed optimism, and I understand why Wall Street and its spokespeople want to see a return of the bull market. Hell, everyone with a stock portfolio wants to see it grow again. But wishing for something is different from getting it. And cockeyed optimism can wreak enormous damage on an economy. Haven’t we already learned this?3

If the purpose of Bernanke’s grand economics experiment was to create uneven inflation in the equities markets and, thus, widen the chasm between the financials and the real economy; he seems to have succeeded. But for how long? How long will it be before foreign banks and investors realize that the Fed’s innocuous-sounding “lending facilities” have released a wave of low interest speculative liquidity into the capital markets? How else does one explain soaring stocks when industrial capacity, manufacturing, exports, corporate profits, retail and every other sector have been pounded into rubble? Liquidity is never inert. It navigates the financial system like mercury in water darting elusively to the area which offers the greatest opportunity for profit. That’s why the surge popped up first in the stock market. (so far) When it spills into commodities–and oil and food prices rise–Bernanke will realize his plan has backfired..

Bernanke’s financial rescue plan is a disaster. He should have spent a little less time with Milton Friedman and a little more with Karl Marx. It was Marx who uncovered the root of all financial crises. He summed it up like this:

The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses as opposed to the drive of capitalist production to develop the productive forces as though only the absolute consuming power of society constituted their limit.”4

Bingo. Message to Bernanke: Workers need debt-relief and a raise in pay not bigger bailouts for chiseling fatcat banksters

  1. Edward Harrison, “The Fake Recovery,” Credit Writedowns []
  2. Robert Schiller, “Depression Lurks unless there’s more Stimulus,”Bloomberg []
  3. Robert Reich’s Blog, “Why We’re Not at the Beginning of the End, and Probably Not Even At the End of the Beginning“ []
  4. Karl Marx, Capital, vol. 3, New York International publishers, 1967; Thanks to Monthly review, John Bellamy Foster []
Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com. Read other articles by Mike.

15 comments on this article so far ...

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  1. Michael Kenny said on April 18th, 2009 at 10:12am #

    I think this has more to do with Israel than economics and is linked to George Mitchell’s current trip to the Middle East. Israel’s existence is entirely dependcent on American brute force, so the Lobby has to hype the idea that American power is still intact and, indeed, recovering. The purpose is to bamboozle the Palestinians into agreeing to a two-state solution on Israel’s terms before they realise that if they just sit tight, they can have a one-state solution on their terms and bamboozle Europe into sending soldiers to force the Palestinians to accept the Israeli solution once they realise they’ve been conned! I doubt if either the Palestinians or Europe can be conned at this stage, but it just shows how desperate the Israelis are and just how much the Lobby has hijacked the US political system.

  2. Don Hawkins said on April 18th, 2009 at 11:05am #

    Slang term from the early 1990s meaning roughly “IN YOUR FACE!” .

    Somehow I think much better we in there face than them in our face. Still time not much we need to start now. Think boots and kind of a war. They have this secret hand shake on fast money or is that a Wall Street secret hand shake? We have the truth and knowledge oh yes we do. “Booyah

  3. RH2 said on April 18th, 2009 at 11:22am #

    Michael Kenny,

    I find your conclusion far –fetched. In my opinion Zionists are one of the most dangerous threats to the moral hygiene of mankind. At the same time I consider it to be exaggerated, even a misleading propaganda to ascribe Zionists abilities beyond all limits. Zionists are nothing but ordinary mortals. The real evil on our planet is U.S. Imperialism. Zionists serving Israel simply find a good host in the U.S.

  4. Don Hawkins said on April 18th, 2009 at 11:41am #

    The show Fast money on CNBC well they have these commercials for the show and I guess tell people the best way to invest and in my mind they tell you the best way to destroy a planet that is with what we know now knowledge. The planet is called Earth and so far with what we know a unique planet that can support live so far. At the end of there commercials they always’ say class dismissed like they are the teachers and I guess us the students. Well first of all class is not dismissed rather hard to do in an expanding Universe. As far as them being the teachers well a little message from Yoda.

    “You must unlearn what you have learned.” “Once you start down the dark path, forever will it dominate your destiny, consume you it will…”

    “You will know (the good from the bad) when you are calm, at peace. Passive. Use the Force for knowledge and defense, never for attack. ”


  5. RH2 said on April 18th, 2009 at 1:29pm #

    The term Wall Street seems to seduce some readers to bring the economic “optimism” of Obama with Jews. Wall Street is dominated by Jews. But are all those happy Latinos and Blacks, who tearfully brought the opportunist and eloquent slave Obama to the White House, Jews? Are the Condoleezza Rices and Colin Powells Jews? These two wretched examples of slavery descendants show us that slavery can lead to the opposite direction. The historic slaves Rice and Powell, who are supposed to be sensitive to oppression and humiliation, obviously deceived their descent and history by reproducing the aggressive language of Imperialism and representing the distorted world view of plutocracy and dominance. Now we have Obama to do the job. After all, economic “progress” is good for consumption and Imperialism.

  6. Deadbeat said on April 18th, 2009 at 1:59pm #

    Bernanke’s financial rescue plan is a disaster. He should have spent a little less time with Milton Friedman and a little more with Karl Marx. It was Marx who uncovered the root of all financial crises. He summed it up like this:

    The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses as opposed to the drive of capitalist production to develop the productive forces as though only the absolute consuming power of society constituted their limit.”4

    Bingo. Message to Bernanke: Workers need debt-relief and a raise in pay not bigger bailouts for chiseling fatcat banksters

    Thanks Mike. It is also a lesson that the Left needs to learn as well. The tendency to ignore Marx appears to be rampant these days when in fact there needs to be an embrace of his teaching and understanding of how Capitalism truly functions.

    But IMO the most important aspect of Marx is the understanding of POWER and the need for working class solidarity. Kudos Mike for quoting Marx and demonstrating the importance of his ideas.

  7. Don Hawkins said on April 18th, 2009 at 2:17pm #

    By Ray Grigg, Courier-Islander April 17, 2009

    If you are old enough to read and understand this, you will probably be safe from the worst effects of global climate change. If you are too young to read and understand this, your mid-life future may be less than comfortable. By the time today’s young children reach middle age, the disruptive effects of global warming may be causing enough ecological imbalance to unsettle human populations and initiate significant political chaos. The children of today’s children may be facing even more sobering prospects.

    The latest information on global warming and climate change is a pall settling on everyone who considers the future, whether it be ecologies or the viability of human civilization we bequeath to our children and their children. Indeed, contemplating the forthcoming decades has become a disquieting exercise, with even the most promising of assessments now couched in qualified optimism. Even scientists want their predictions to be wrong.

    Most politicians and most people still seem to be in denial, living mostly in a world of the present. They awake in the morning to a seemingly ordinary day, dress accordingly, then carry on as if everything were normal. But some very knowledgable scientists are looking intently at their climate models, checking and triple checking the accuracy of their data, then considering and re-considering their predictions.
    From their perspective, to be frankly honest, the future looks sobering

    Significant political chaos well, well let’s watch the Senate the next two months and how they handle the end of the human race as we know it and see if we see any significant political chaos.

  8. Don Hawkins said on April 19th, 2009 at 9:24am #

    I have been cooking peanut’s for two day’s my son is selling them at the motorcycle races and just cooked chicken wings for dinner and then thought heck how about a little fair and balanced news so turned on Fox News. Well first they did a little thing called liberal lies where certain school books Fox thinks are not true. Something about FDR and the new deal was lies and Rockefeller was a good guy. I wonder if Fox could would they burn these books? Oh they give the phone number of the publisher of the books. Then this lady came on I guess from the Fox financial network and said that 8 States now have double digit unemployment but she said this is a lagging indicator and that is a fancy term used by economists. Well golly gee you learn something everyday lagging indicator wow that is fancy alright. Well I turned off the TV and my first thought was not so much fancy but;

    Active paranoiac thought, through which it will be possible to systematize confusion and contribute to the total discrediting of the world of reality and nut’s.

  9. Tennessee-Chavizta said on April 19th, 2009 at 9:47am #


    i wish i was rich , everybody loves wealth and being comfortable, but the reality is that in this plutocratic-economic system only a few get a big piece of the economic pie. Individually we can’t escape economic limitations tha americans are facing. There is no anti-political solution to a human’s problems.

    The only solution is an electoral, political solution for every thing in this world. I have learned that politics is the real tool that people have to fix their lifestyles.

    However only in 2012 we can do that (provided that there was a third people’s party as an option)

  10. Tennessee-Chavizta said on April 19th, 2009 at 10:48am #


    even some friends and relatives of mine thought somehow politics wasn’t relevant, and that there was some individualist alas Robinson Crusoe way to escape the poverty-hell in this world thru individualist solutions like e-bay, getting 2 jobs a day, etc. And they thought that they could escape poverty divorced from politics (How wrong they were)!!

    And now they have been telling me that ebay business is going down, they are waking up to reality. They are telling me that USA needs a people’s party (A thrid party) and they are not even too polisized, not even socialists nor republicans.


  11. RH2 said on April 19th, 2009 at 12:21pm #


    I do hope that the Americans will found a competitive third party for their good and the good of the world, a project which requires activists, money and media. The modest trial of Nadir has obviously failed. You write that the reality of poverty is waking up American people. Had it been much different years ago? Here in Europe we have been hearing things for years about conditions in the U.S.: hire and fire, getting 2 jobs a day, insufficient health care … etc.

  12. Suthiano said on April 20th, 2009 at 12:32am #

    What Rhymes With Waziristan?

    Canada is full of Obamacons.

    In Ottawa, they even altered the famed delectable treat the ‘beaver tail’ to create the ‘Obama tail’.

    When, in a 3rd year level course at the ‘respected’ University of Toronto, my professor (with a PHD!) began the course by talking about the ‘amazing Barack Obama’ and promising that we would be studying some of his speeches later in the year, I knew I was in the wrong place, that is if enlightenment was my goal.

    I challenged the professor by bringing in genetics (because she also played a clip from Thank You For Smoking, which stars the handsome [no I’m not ‘gay’, you’re projecting] Aaron Eckhart). What role does genetics play in rhetoric? If you have a pretty face, and one that simultaneously triggers deep-seeded feelings of guilt in a large percentage of the population exactly when they are most discouraged with the alternative, does it really matter if you say anything more substantial than HOPE and CHANGE?

    Of course I use rhetoric too; that is, there is a structure to the way my sentences flow.

    .beginning the before end the give don’t I

    Okay. So what? Am I talking because I am interested in philosophy [philo sophia, a love of wisdom?], or am I talking because it’s a, a job, a profession that brings in the cash?

    Intent will keep coming up, so maybe you will be able to tell me mine by the end of this spiel. I certainly don’t expect you to take my professions of intent as truth. I don’t have to. I’m not afraid of analysis. This is another difference between rhetoricians (sophists) and myself that will continue to rear its head. Because of my rhetoric?

    So let’s look at Obama and the Af-Pak war. We can study rhetoric and determine what is actually happening.?

    On one side we have ‘glimmers of hope’, on the other we have more and more and more of the following:

    “An anonymous intelligence official with long experience in Pakistan told McClatchy News that “it’s a disaster in the making on the scale of the Iranian revolution,” and that “the implications of this are disastrous for the U.S. The supply lines [from Karachi to U.S. military bases] in Kandahar and Kabul from the south and east will be cut, or at least they’ll be less secure, and probably sooner rather than later. That will jeopardize the mission in Afghanistan, especially now that it’s getting bigger.”

    Another Pentagon adviser speaking on condition of anonymity told McClatchy, “The place is beyond redemption. I think Pakistan is moving toward a situation where the extremists control virtually all of the countryside and the government controls only the urban centers,” he continued. “If you look out 10 years, I think the government will be overrun by Islamic militants.” The experts interviewed for the article insisted that their views weren’t “worst case scenarios” but were “realistic expectations” for the coming months.

    David Kilcullen, former military adviser to General Petraeus and a top expert on guerilla warfare, was recently quoted in the New York Times as saying, “within one to six months we could see the collapse of the Pakistani state,” creating a civil conflict that would “dwarf” current crises” (http://rawstory.com/news/2008/American_officials_predict_dangerous_insurgency_collapse_0418.html).

    Even as I write a, ‘US Drone Strike Kills 8 Civilians In South Waziristan’ http://news.antiwar.com/2009/04/19/us-drone-strike-kills-up-to-eight-in-south-waziristan/.

    But aren’t Obama’s professed motives stability and fighting extremism?

    Can we attempt to verify this information?

    Run an ‘either or test’: either Obama is an absolute moron, totally ignorant of history, or his intentions differ from his professed motives.

    Well we know that Obama is an Ivy Leaguer. So, he defiantly knows about the 1954 CIA instigated overthrow of the Iranian parliamentary system (the resulting ‘revolution’) and the ensuing buttressing of the brutal Shah. He is definitely familiar with the concept of ‘blow back’.

    So ‘either’ seems ridiculous, and we’re left only with ‘or’.

    Hey, Obama Man!

    What’s the sincere plan in South Waziristan?


  13. Don Hawkins said on April 20th, 2009 at 2:30am #

    1,500 farmers commit mass suicide in India
    Wednesday, 15 April 2009

    Over 1,500 farmers in an Indian state committed suicide after being driven to debt by crop failure, it was reported today.
    The agricultural state of Chattisgarh was hit by falling water levels.
    “The water level has gone down below 250 feet here. It used to be at 40 feet a few years ago,” Shatrughan Sahu, a villager in one of the districts, told Down To Earth magazine
    “Most of the farmers here are indebted and only God can save the ones who do not have a bore well.”
    Mr Sahu lives in a district that recorded 206 farmer suicides last year. Police records for the district add that many deaths occur due to debt and economic distress.
    In another village nearby, Beturam Sahu, who owned two acres of land was among those who committed suicide. His crop is yet to be harvested, but his son Lakhnu left to take up a job as a manual labourer.
    His family must repay a debt of £400 and the crop this year is poor.
    “The crop is so bad this year that we will not even be able to save any seeds,” said Lakhnu’s friend Santosh. “There were no rains at all.”
    “That’s why Lakhnu left even before harvesting the crop. There is nothing left to harvest in his land this time. He is worried how he will repay these loans.”
    Bharatendu Prakash, from the Organic Farming Association of India, told the Press Association: “Farmers’ suicides are increasing due to a vicious circle created by money lenders. They lure farmers to take money but when the crops fail, they are left with no option other than death.”
    Mr Prakash added that the government ought to take up the cause of the poor farmers just as they fight for a strong economy.
    “Development should be for all. The government blames us for being against development. Forest area is depleting and dams are constructed without proper planning.
    All this contributes to dipping water levels. Farmers should be taken into consideration when planning policies,” he said.

    “Farmers’ suicides are increasing due to a vicious circle created by money lenders. They lure farmers to take money but when the crops fail, they are left with no option other than death.”

    “The crop is so bad this year that we will not even be able to save any seeds,” said Lakhnu’s friend Santosh. “There were no rains at all.” “There were no rains at all.”

    That’s just India and China a few minor problems with climate, weather. In the States getting bad not as bad as India or China yet but do we see a vicious circle created by money lenders? You know this is America it’s going up for ever and pay no attention to that small witting at the end where did I put that notary stamp has to be notarized. Remember unemployment is a lagging indicator that is a fancy term used by economists. BOOYAH

  14. Tim Sutton said on April 20th, 2009 at 7:34am #

    You are unfortunately correct in your analysis of the flippant way the mainstream media believe the stock market is an indicator of general economic health and how that by having a wee rise in a few stocks or shares MUST signal everything is OK….idiots.

    Recovery, don’t make me laugh!! I am getting lambasted as a gloom and doom merchant by all I know when I say the US is on it’s last legs and there will be food riots before Xmas…

    Have you looked at the Alt-A loans even BO ? No ? they will make subprime look like a good deal in 12 months time.

    Have you looked at commercial and commercial property loans BO ? No ? Then Don’t. Trust me on this one.

    Have you looked at the amount of money borrowed by farmers in the last 10 years compared to the last 12 months BO ? No ? Really? There will be a lot of hungry mouths in December I can assure you….

    P.S BO – The only green shoots I see are in all the new allotments and newly dug vegetable patches that are replacing lawns and gardens all over the country in preparation….

  15. Tennessee-Chavizta said on April 20th, 2009 at 8:52am #

    Tales of the Tribe – PART 18

    Revolt of the goyim

    full article at: