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Our Dual (confusing) Economy! What’s really happening!

December 23, 2014

Our Dow Index is now over 18,000 and reports are everywhere about how our economy is prospering, growing, and trending upward! Confidence is at a record high and our Fed (via Bill Dudley) is reporting that trends are now sound and that U.S. interest rates should be able to increase on schedule in 2015. The recent revision of our economic statistics reveals that our economy grew by 5% in the 3rd quarter. This was a sharp upward revision. With oil prices down and our stock market indices increasing daily, this must mean that all is well with the U.S.A. economy and our future! Is this sound thinking, however? Is there another side of this media presentation by our governmental officials?

At this moment all appears well with the U.S. economy! But is there another picture?

Underneath all the euphoria are darker images which could change our confidence and optimism at some point (and rather soon). Employment numbers reveal that more people are employed but NOT with jobs which are paying well. Also, the number of people on EBT cards (food stamps) is at a record high. Wages have not grown for the middle class for the past 8 years. The rich (the 1% – 3%) are reaping huge gains and the poor (the 97%) are gradually getting more in debt and less prosperous. Why this dichotomy? Why this Dual picture? Could the numbers and statistics be only partially valid?

Look at this image! What is the message? How can our economy be doing so well and our stock prices increasing exponentially when wage income has stagnated?

The unemployment rate declines but the jobs are mostly part-time and low paying! Does this reveal a sound and prosperous economy? What is missing?

What we all need to recognize is that many of the numbers and statistics which our government media and our financial pundits are presenting to the public are mostly deceptive and bogus. In reality, Americans are now living with more debt and this trend is increasing (similar to prior to the crash of 2008). Also, our government debt has not decreased during this supposedly prosperous stock market period, but is at record levels. Look at this website for current numbers and statistics: Federal spending has increased 98% since 2000 and federal revenues have increased only 52%. Consumer debt decreased after 2008 but is now increasing again as is mortgage debt. So what is really happening overall?

Trends do not seem to justify the euphoria about our economy and/or the 18,000 plus stock market level (the Dow)! Overall debt is increasing and the global situation (note what is happening in Russia) is noteworthy! We could soon experience another financial reset!

Our Fed’s QE counterfeiting has papered over (temporarily) the core underlying issues! So on the surface all ‘appears’ well (the drugs of QE are still present) but the ‘patient’ has not been healed! At some point, the ‘decease’ will reappear!

It appears that the Bernanke QE operations temporarily allowed our overall economy to stabilize (to a degree) but not to heal. His actions along with that of Yellen (our current Fed Chairman) have temporarily created some confidence and euphoric media spin which may not last much longer. Done of the fundamental issues (debt, deficits, derivatives, QE counterfeiting, and stock market manipulations) seem to have really changed. Our markets are now mostly within cyberspace and our currencies are volatile and unstable going forward. Enjoy the spin for now but think more seriously about what is emerging down under. Our economy is Dual and we are now getting only the euphoric side of the picture. Enjoy the holiday spin! I will do likewise! I am:

2 Comments leave one →
  1. hallenberg2005 permalink
    December 23, 2014 2:19 pm

    don, healthcare was two-thirds of the 5% boost!! look at today’s article at,”here is the reason for the ‘surge’ in q 3 gdp.” what’s going to stop the “printing”(cyber space) by the fed ? i think the only one in gov’t is elizebeth warren. hopefully she’ll moderate the rest of her views. meanwhile the only thing i see that can stop the fed would be a default by russia like they did in 1998.   scott 


    • December 23, 2014 8:25 pm

      Thanks for this information. 2015 will likely be the year of change. D On Dec 23, 2014 2:19 PM, “Kingdom Economics – The Future Is Now” wrote:



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