Even With Huge Federal Debt Growth, Much of the US Economy is in Recession

Even with massive spending of Federal money and gigantic fiscal deficits, most of the US economy is faltering. Why? Because the money is flowing to owners of stocks and real estate such as multi-millionaires, billionaires and the “most favored” or monopolistic corporations like Amazon and entire industries like the defense contractors. Extreme corporate concentrations abound! 

 

From India Times: “Is the US economy really growing at 3.9%? On paper, yes. But in reality, 82% of Americans live in regions now shrinking — the biggest share since 2020. Growth looks strong only because the data hides the cracks. Regional recessions are spreading fast. Manufacturing towns are bleeding jobs. Tariffs have lifted prices. Mass layoffs — over 172,000 this year — are cutting into household spending.”

Take a look at the chart below. It’s not pretty. I just received this information from Hedgeye investment advisors. It’s not good at all:

 

This is the first time in history that U.S. consumers surveyed by the University of Michigan have felt this poorly about the current state of the economy.

If you take a big step back, it’s not irrational for millions of Americans to feel this way. Since 2020 and the Covid scam:

• US grocery prices are up a whopping +29%

• Transportation services have climbed +36%

• Food away from home has surged +33%

• Total credit-card debt has jumped +50%

This may be hard to believe, but one in four U.S. households spend more than half of their income on paying rent. All the while, wage growth has slowed and the US Dollar’s purchasing power has eroded over 20%.

In other words, people all across America are feeling increased pricing pressure and we’re witnessing evidence of this all around us.

Wealth Inequality is Off the Charts:

Unless something changes, eventually the top 1% will own nearly everything. I’m not even joking. The richest 1% and 10% get richer, everyone else gets poorer.

The charts below show how wealth gets concentrated in the top 1% and top 10%. The top 10% owns stocks and these people can afford advisers to maximize their gains and minimize losses. Most ordinary investors lose money in stocks. Stock market drawdowns kill the “mom and pop” investors. Most people can’t afford to invest in stocks at all, so they are subject to all the effect of inflation with none of the inflation hedges of the well-off.

 

 

  

 

Just look at Nancy Pelosi’s stock portfolio gains in recent years. She’s made $400 MILLION by investing in stocks. She’s really an intellectual dipshit, so you can bet that it’s all insider information! And worse, she pretends to be “for the common man.” Many other politicians and government employees are like this. They have inside information.

At the start of Covid scam, you can bet that many, or even most, of the staff of the US Government’s NIH and Fauci himself owned Gilead stock, the maker of the official covid medicine called Remdesivir? Of course they did. That’s why they recommended it! They profited as many ordinary people died (just like AZT in the 1980s/90s, thanks to Fauci). The Covid MRNA vaccine was a scam and a health nightmare. But drug makers, Walmart and AMZN stock did very well.

Owning your own home or other real estate are the traditional hedges for ordinary families and people, but real estate prices are so high now that few in the latest generation and those in the bottom of the economic ladder can afford any of it. Corporations like Blackrock are selling shares on Wall Street and using procedes from those sales in order to “corner-the-market” or dominate the US Housing market. They are suceeding!! How many times have you been called by someone asking to buy your house? Dozens? At least a few dozen? This is being orchestrated in plain sight.

When the housing market crashes, Blackrock will be bailed-out, but not you or I.

Our Broken Social Contract

From the Charles Hughes Smith’s blog:

The Social Contract is broken not just by wealth inequality per se but by the illegitimate process of wealth acquisition, i.e. the state has tipped the scales in favor of the few behind closed doors and routinely ignores or bypasses the intent of the law even as the state claims to be following the narrower letter of the law.

By this definition, the Social Contract in America has been completely smashed. One sector after another is dominated by cartel-state partnerships that are forged and enforced in obscure legislation written by lobbyists. Once the laws have been riddled with loopholes and the regulators have been corrupted, “no one is above the law” has lost all meaning.

Those who violate the intent of the law while managing to conjure an apparent compliance with the letter of the law are shysters, scammers and thieves who exploit the intricate loopholes of the system, all the while parading their compliance as evidence the system is fair and just. In this way, the judicial system becomes part of the illegitimate process of wealth accumulation.

In America, political and financial Elites are above the intent of the law. Is bribery of politicos illegal? Supposedly it is, but in practice it is entirely and openly legal.

The following 1 minute video illustrates what happens when people realize they are being screwed. It turns out that even chimpanzees know when they are being tricked! Click it for a perfect lesson of a broken social contract—it’s priceless (just a minute or so) Don’t miss it, it’s really funny and truthful: