A Bitter Pill

Over at Investment Watch Blog, a sobering article was presented regarding the state of the economy with an emphasis on inventories, particularly versus sales.

First, a pie chart presented some dire data regarding Americans savings accounts, which shows any meaningful recovery, particularly for the lower income families, is fiction.

“It’s worrisome that such a large percentage of Americans have so little set aside in a savings account,” said Cameron Huddleston, a personal finance expert and columnist for GOBankingRates. “It suggests that they likely don’t have cash reserves to cover an emergency and will have to rely on credit, friends, and family, or even their retirement accounts to cover unexpected expenses.”

In addition to these findings, along with restaurant and retail getting crushed, we find a hideous divergence between year over year wholesale sales and inventories.

With the administration working every angle for "working families", we find “the poorest Americans have stopped shopping, except for necessities,” said Britt Beemer, chairman of ARG.

As IWB notes, "inventories-to-sales at recessionary peaks…"

Imagine that!

The entire recovery has been a fraud.

Sadly, with a genesis to the current debacle found in the last months of the Bush administration, the Obama administration has used the crisis to increase government control over the segment of society making the engine turn, most notably through actions like Dodd-Frank.

Additionally, the banks have been bailed out, and wealth has been stolen from the citizenry.  While rates are low, borrowing restrictions have escalated, and seniors on fixed income have been crushed.

Ironically, with the DOW reaching news highs, folks will point to the stock market as success. However, the money supply has been increased five fold, indicating losses on purchasing power versus a 300 percent increase in the market.

And about the stability of the market, Zero Hedge reports infiltration by central banks, propping up the indexes. Those in the know recognize the jig is about up, as evidenced by the short squeeze witnessed over the last few days.

Via Zero Hedge

Something will have to give, and make no mistake, the end result ramifications will be a bitter pill for the American economy to swallow. When it occurs, please remember who has been in charge for the last eight or so years; a group aiming to curtail economic freedom and increase dependency on government.

We recommend you visit ZeroHedge.com and InvestmentWatchBlog.com frequently to keep up to speed!