NO RECOVERY IN SIGHT!

SS Lieutenant Axelrod Calls for More Stimulus Spending

The Conference Board’s Index of Leading Economic Indicators (LEI) is a tool to predict a recovery or recession. This index is reported monthly and is made up of ten economic components that can reflect upcoming changes the overall economy. It has been an extremely reliable indicator and may be able to forecast when and if a turnaround in the 2009 recession/depression forecast is about to occur.

The LEI had been on a general downtrend since reaching a peak in July 2007, however in May the LEI rose 1.2 percent after a revised 1.1 percent increase in April. This was the best back-to-back performance since November-December 2001.

Is this a time for lowering the white flag that the recession is over?  Hardly, the year-over-year percentage change of the LEI over a three month period NOT two months could give a bear bull indication either way

The Financial variables of the LEI economic components stock market rally, and growth in real money were fully responsible for the positive LEI during the last two months. However, the five economic variables of the LEI made no positive indication that the recession/depression is over.  Collectively in the negative were, average hours worked, jobless claims, real consumer goods orders, real core capital goods orders, and building permits.

Historically, the LEI change to the positive declaring a end to a recession occurs when all economic variables join the positive development of the other variables.

Perhaps the best indicator would be that Comrade President Obama first Lieutenant Axelrod, in charge of enslaving Americans with an insurmountable debt burden has indicated a need for more stimulus money.   Since the past two stimulus packages have not put any one to work as indicated by the LEI  a third debt package is necessary because unemployment rates continue to rise, despite the LEI increase in the financial sector.

On CBS’s “Face the Nation,” Mississippi Gov. Haley Barbour (R) said that the $787 billion fiscal stimulus package passed earlier this year is “far too expensive.” The Obama administration argues that it will save or create 3.5 million jobs over two years.

“I don’t think we need to have another multi-hundred billion dollar, trillion dollar spending package,” Barbour said. “While this may have some short term positive effect…the real long term effect is very negative on interest rates, inflation and the value of the dollar.”

The real gambit is politics, if the Democrats cannot show that throwing trillions of taxpayer dollars down the garbage disposal cannot help the economy they are doomed in the 2010 elections.  Unless they can continue to cajole and preach bull markets to true believers while reality presents irrefutable facts to those few who possess some common sense, and know when  it is time to flush the toilet, the Politburo will remain in control of government and American lives.

The Messiah’s high popularity numbers though dropping below 60% indicate the cool-aide drinkers, still have their party hats on! When they wake up with a Marxist-fascist stomachache and understand that they now work for the government not for themselves, they will find that cool-aide is too expensive, unless they have a federal government job.

Let us remind the Democrats who voted for Obama-Biden that they are Marxist-fascists pigs.  Government cannot sustain itself but through taxation.  The largest government expansion in history is now occurring but for WWII, it must feed itself by taxing the private sector.  Cap and trade legislation just passed by the house is the largest tax bill in the history of the world, unless you consider China’s communist government that did not allow voting by the people affected, but then again neither did we Americans!