US Action News

Peter Schiff explains how current government policies are leading us to a depression worse than the Great Depression and possibly coupled with hyper inflation. He says there never was a recovery, just an artificial bump from massive spending of printed money.

Depression or hyperinflation then Depression are the two choices staring at economic policy makers. And the situation is so far gone that short of dramatically cutting government spending there is no way to avoid destruction of the currency.
No economic policy that I know of can bring us back from this fate.

The contraction in the first three months of this year was bigger than expected, with most analysts expecting the annualized rate would show a contraction of about 2%.

Dick Morris comments on recession. Don’t believe the government data. We are entering a double dip recession, this time with stagflation.

Despite the fact that the jobs gained in 2010 did favor men during what is being called the “he-covery/mancovery,” it’s still very much of a “mancession” once we account for all of the jobs gained and lost since the start of the recession.

Here’s a simple test of whether the economic recovery is self-sustaining or not: cut Federal spending back to 2007 levels (a $1 trillion reduction) and cancel all Fed intervention such as quantitative easing.

Yes, things really are that bad. The mainstream media has been really busy downplaying the economic impact of the disaster in Japan and the chaos in the Middle East, but the truth is that these events have huge implications for the global economy.

Almost half of the respondents in a Bloomberg National Poll conducted March 4-7 believe the U.S. is in a “fragile” rebound and could fall back into recession. More than a third of the country believes the U.S. never emerged from recession.

[C]ritical budget issues affect states, and Congress is poised to cut spending. Together with rising oil prices on a supply shock, possible European interest rate hikes, a cutoff in Quantitative Easing, forced cutbacks in China due to overheating, and a stock market that is priced well beyond perfection, the best one can say is that risks are hugely skewed to the downside, both for the stock market and the unemployment picture.

[A]s winter ends, QE2 expires in June with QE3 an unlikely scenario, and China cools off its economy to fight inflation, gasoline and distillates probably have already seen their highs for the year already.