Thursday, February 25, 2010

Gloom & Doom

The Gallup polling firm has stumbled upon its own BS detector for unemployment figures from the Labor Department. 19.9% of people surveyed last month say they were unemployed or underemployed. That would be equivalent to an official unemployment rate of 16.5%.
The American people themselves say the government’s broadest measure of unemployment undercounts by a factor of about 20%.
Gallup’s figure comes within a respectable distance of the real-world estimate compiled by John Williams of 21.2%.
Where is all this headed? Marc Faber has gone a step further with his forecast that “all governments will eventually default, including the U.S.” He laid out the prospect of a “dirty war” this week in Tokyo, during a speech delivered to 700 managers of hedge funds and pension funds.
"What are you going to do when your mobile phone gets shut down or the Internet stops working or the city water supplies get poisoned?”
“When I tell people to prepare themselves for a dirty war, they ask me: ‘America against whom?’ I tell them that for sure they will find someone.”
Faber has long seen war as the ultimate distraction from debts that can’t be repaid… and he said specifically the U.S. budget deficit will remain above $1 trillion a year. (The Obama administration says it’ll get back below that figure by fiscal 2012.)

No comments: