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.
The weakening dollar propelled gold prices in American markets almost to $1,200 an ounce Tuesday morning, Reuters reported. U.S. gold futures for February delivery hit a new record of $1,200.50 an ounce before falling back. Investors are buying the precious metal as an alternative asset.
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.
Top Washington Democrats are planning another round of "stimulus" spending legislation to create jobs, according to the Los Angeles Times for November 27. “The renewed push to create jobs is driven by a recognition that the $787-billion stimulus program enacted in February is not a sufficient remedy for an unemployment rate that stands at 10.2%,” the Times reported, adding that “Congressional aides said the new program could cost tens of billions of dollars. Democratic House members who had wanted a larger stimulus said they would press for a substantial spending plan this time.”