The absurdity of today’s flim-flam economy can be summarized when the events of the past week are considered together:
- The U.S. economy grew at an annualized rate of just 0.5% during the first quarter
- Corporate profits are the lowest they’ve been since 2009
- The current bull market is now the second longest in history
- The Federal Reserve Board, to no one’s surprise, elected yet again not to raise interest rates
The conclusion that can be drawn is that, while the U.S. is not yet a socialist country, it is no longer a capitalist country, either. There is a seeming collusion between political leaders and central bankers with the net result being more and more government control over our lives amid the illusion that all is well, because, after all, the stock market moves in only one direction.
Mainstream media, with few exceptions, reinforce the illusion, cheerleading for the Obama Administration as it continues to break records for its ever-increasing volume of new regulations. Burdensome new regulations reduce corporate profits, which should result in lower stock prices. But the Fed has somehow managed to circumvent reality and juice the market ever higher. (more…)