Economic Rebound “Not Happening” in 2011: Achuthan

Brazo...what he is saying the free ride is over for a while. no 25% ...50% up in the next year
this guy has it right. wait till the soldiers come home to no jobs. invest in basic food stuffs.

This guy is absolutely correct. Why do so many agree? Because we see it too, but nobody has the guts to admit it in the general media. I think the mantra is, just keep telling people things are good so they will keep spending. If they keep spending, then things will surely end up good. We live in an economic time where bad is spun as good, good is spun as great! The economy can't be fixed with a marketing campaign on CNBC. This economy is stalled and failing.

There's much talk about national security. We gave it away by allowing so much manufacturing infrastructure to disappear. More thought and planning should have gone on other than allowing multi-national corporations to make a fast buck by moving to low labor cost countries. Moving to low labor cost countries for quick profit was a ���no-brainer��� (didn���t take a Harvard MBA) once the barriers were removed. However, this is not good for the long term for the company making the move and especially for the U.S. economy.
Many important components and materials are not being made or designed in the U.S. anymore. You can start with small electronic components, switches, etc that are used in so many places. There's no infrastructure (suppliers, relationships, design, productions, etc) in the U.S. as there once was. It takes along time to develop this infrastructure.
One may argue that the U.S. has depended on free market capitalism and ���creative destruction��� of industries and products. Examples include horses to steam and internal combustion, gas light to electric light and mechanical adding machines to high speed computers. However, there may be hard limits to these changes and technological progress may be slowing and for the foreseeable future. If the current course continues the primary destruction may be the U.S. economy and way of life for the non-elite classes.

545 People vs 300 Million People
-By Charlie Reese
Politicians are the only people in the world who create problems and then campaign against them.
Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?
Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?
You and I don't propose a federal budget. The President does.
You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does.
You and I don't write the tax code, Congress does.
You and I don't set fiscal policy, Congress does.
You and I don't control monetary policy, the Federal Reserve Bank does.
One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.
I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.
I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes.
Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The President can only propose a budget. He cannot force the Congress to accept it.
The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? John Boehner. He is the leader of the majority party. He and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.
It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility. I can't think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.
If the tax code is unfair, it's because they want it unfair.
If the budget is in the red, it's because they want it in the red.
If the Army & Marines are in Iraq and Afghanistan it's because they want them in Iraq and Afghanistan ...
If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.
There are no insoluble government problems.
Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like "the economy," "inflation," or "politics" that prevent them from doing what they take an oath to do.
Those 545 people, and they alone, are responsible.
They, and they alone, should be held accountable by the people who are their bosses.

In the 70���s I was making about $10 an hour as a computer operator, with a family. Unionized employees at a ship building company in the USA were making $23+ an hour went on strike demanding more���.I remember thinking,���I wouldn���t go on strike if I were making $20+ an hour, I���d be grateful���..The ship building company shut down, and moved overseas���GET IT? 40 years later you still wondering why companies leave? I don���t blame them..

The middle class, has wiped out the middle class by being too greedy.

This guy knows what he's talking about. Two thumbs up.

Wow. Someone that calls it like it is and explains a calculus concept in a pedestrian fashion...knowing things like "growth rate slowdown means profits grow but slower" puts certainty out there far easier than cheer leading profits through growth with no insight other than the standard verbiage used to sell their funds or policies...

Harry Dent:
Housing can't recover with the lowest prices and lowest interest in decades.....WHY?
No buyers.
Loss of purchasing power.
Deflation
Deleveraging
Complete implosion of househoold wealth.
AGING POPULATION.......SAVING.
No Spending.
Inflation can't take hold because there is no purchasing power.

Yeah we have to pay the food and gas inflation....but that means sales elsewhere will decrease.
During deflation in a zero sum game, the commodities bubble always pops and prices come down.

The Cntrsal banks dealt with the liquidity issue and solved the bank run from that crisis.
Now they have to deal with the solvency part of the cycle and prevent a bank run from that.

Once the first series of bondholders get a nice haircut......the entire system will implode.

There is no mass consumer spending to lift us out of the deflationary cycle.....so everyone's solvency.....countries, states, corporations, and individuals.......all of it is stuck in the deflationary cycle.

Now if everyone just said the heck with saving, the heck with retiring, let's spend it all now, let it ride...... Las Vegas baby !!!!!.....we might see some growth....otherwise the only growth will be on paper.......and therefore the real time life support livelihood economy is destroyed in the process.

He's right. Recovery ain't happening, ever.

Pump and dump is a cycle, too.

Keep listening to these idiots, $23.7T was just a warm-up. Invest in lead bricks because usury kills.

Good explanation. One of the brighter guests I've seen on Breakout. This guy gets it..

I think he needs to address congress, the senate and the white house. What we really need right now is for the EPA to roll out more regulation. While we are at it, all Obama's federal regulators should institute broad and sweeping regulation so we can choke the last gasp out of the economy. And the best yet, let's not reach a deficit plan before August 2nd. Hello...

We are at the tail end of two bad things. Outsourcing is reaching maximum (which means permanent unemployment for a lot of people in the US) and the Federal Deficit is now over the inflection point and is going catastrophic (i.e. exponential). I don't see a solution here. We see the iceberg but we can't steer away in time...

This guy must be Nostradamus's long lost protege. There can be no recovery until President Green Shoots is gone. Hunker down. It is going to be a tough 18 months.

I saw this coming my last time back home in April! After the 99er's started coming off, i use the seat wait at restaurants. What took 1-1.5 hours wait for a table , many times i could walk up and be seated and many tables we empty. Going to get worse!

We had a 30 year party of credit bubble. Maybe 35, if you include the inflationary mid-70s. Hundreds of new government spending programs. Wars. Police actions abroad. Fueling the flames of both sides of Israel and Muslim.

The chickens have come home to roost, and they will be home for decades before this mess improves.

The painful cure is severe downsizing of government, including severe cuts in government spending year by year. A temporary increase in income taxes on everybody, including the 47% who currently do not pay based on their income. A flat 20% tax rate on all and 10% per year cuts in government spending. Then tackle the unfunded liabilities such as social security and medicare. It will take decades to cure.

There won't be a growth economy for decades until the debt is taken care of and people can feel safe to marry, have kids, and stay in one community for decades.

"You don't want to slash spending and you don't want to raise taxes"????? Unless the US Treasury wants to revisit the debt ceiling in five months (assuming we get past this one) something has got to give. Its time to do exactly that. Eliminate tax breaks and loopholes to increase revenue without actually increasing the overall tax rate. Slash spending on animal psych experiments and other pork. Start investing in exploration of resources and technologies to expand the labour market.

Looks like instead of "Hope and Change", Obama has brought us "Agony and Despair"!

Do you care about Greece? The world doesn't care about America or what you think you need!

So why are Obama's programs not working, he said that they were needed but they haven't done a thing except for putting the country deeper into debt. By the way he was talking a year ago you'd think there would be tons of jobs in "green" industries by now, especially since he gave them so much money. Now we are no better off, and have less money now and in the future.

I guess one good thing is most of the union workers are still working and making good money, thanks to Obama spending tax dollars on paying them back for their votes.

Maybe it's time the government, regardless of who controls it, get out of the economy. The free market works best with absolutely no government intervention.

Personally, I think this is simply our Governments way of forcing us to become resigned to a totalitarian system as they have designed it. They are the ones allowing the destruction of our country, the invasion of our country, and they are doing nothing to stop it! I think it's past time for the LEGAL citizens to abolish this mockery of a Government and follow the Founding Father's wishes as put out in the Constitution and the Declaration of Independence. Anything less is suicide for our country.