With continued chaos and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, is warning that what is left of the middle class in America is imploding as the world remains mired in a depression and the US government continues to lie to its people. He also warned that the once massive U.S. gold hoard is now gone.
Is there any way of discerning the truth about the US economy? Famed John Williams of Shadow Government Statistics makes a living by dissecting government statistics and providing us with the truth. The following is from his most recent report:
If the economy will not grow, just redefine it. The US economy continues to stagnate and turn down anew, as part of the deepest and longest economic downturn seen since the Great Depression. With actual business activity moribund, the US government once again has turned to redefining a major economic series, so as to boost a reported activity.
This agrees with my previous observation that the US economy is sinking, regardless of stock market-top fluctuations. How long, I wonder, before the real truth decorates newspaper headlines? Frankly, I’ve never seen a stock market so obsessed with current news. I grew up thinking that the stock market discounts conditions as they will materialize months in the future. Americans must be confused as they note the harsh conditions of their current[amazon asin=146997178X&template=*lrc ad (right)] life when compared to what the Federal Reserve and the government tell us. Ultimately the truth will come out. And I believe that John Williams is telling us the truth. This is indeed the longest economic downturn seen since the Great Depression.
I note that Walmart, with its slipping sales, is now being called “too expensive for the middle class.” This tells us something about the struggles of the middle class, which are now exiting Walmart, in favor of … well, staying home. For the middle class, these appear to be hard times. Interestingly, the last two generations are the first two generations in America history that have never seen hard times — that is, unless they’ve heard descriptions of hard times from their parents, who braved the Great Depression. Now we hear more and more of children moving back in with their parents, or parents moving in with their older children. I’m thinking that we will see a good deal of novel living situations as the months go by.
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