In spite of forecasts by some commentators of an improving economy, several factors point to a coming, even worse, "double-dip" recession: false government statistics that hide the real unemployment rate of 22 percent; the coming defaults of ARM loans; plummeting commercial real estate values; and, the ripple effect the declining real estate market will have on all other areas of the economy.
Federal Reserve Open Market Committee Chairman Ben Bernanke is pulling out all the stops to kill Congressman Ron Paul's legislation to audit the Federal Reserve Bank, this time with a November 29 op-ed column in the Sunday Washington Post.
With rampant foreclosures and declarations of bankruptcy, historic levels of money creation, a plummeting dollar, and double-digit unemployment, one would think that the already-bowing backs of the American public have borne enough of the burden of trying to pull the eonomy out of the rut of recession via more "stimulus" spending. This may seem obvious to most, but not everyone would agree.
The Federal Reserve is facing its severest scrutiny since the 1930s, both from an aroused public and from members of Congress, some of whom face tough reelection fights next year and know they will have to answer to the public. Moreover, scrutiny of the Fed has moved from Internet-only “conspiracy sites” to mainstream reportage — for example, "Analysis: Fed under fire as public anger mounts" and "Fed rage boils over on Capitol Hill."
We dont have to hire historians to see where deficit spending will take us. We have only to look around now. Since the end of World War II, some of history's greatest national disasters have taken place right here in the Americas. North Americans used to laugh or shake their heads at the economies of the south that seemed always on the brink of collapse. Banana republics, we derisively called them. We're not laughing now.