Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Only Thing Systematic Is The Destruction Of America - 29th Sep 20
Fractional-Reserve Banking Is The Elephant In The Room - 29th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part I - 29th Sep 20
Stock Market Short-term Reversal - 29th Sep 20
How Trump co-opted the religious right and stacked the courts with conservatives - 29th Sep 20
Which RTX 3080 GPU to BUY and AVOID! Nvidia, Asus, MSI , Palit, Gigabyte, Zotac, MLCC vs POSCAPS - 29th Sep 20
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gloom Versus Optimism: Is the Global Economic Recession Over?

Economics / Recession 2008 - 2010 Aug 25, 2009 - 04:04 AM GMT

By: Global_Research

Economics

Best Financial Markets Analysis ArticleShamus Cooke writes: Few would consider the opinions of the world's central bankers to be unbiased or even accurate.  These self-proclaimed wise men of international finance didn't see the recession coming until it blew up in their faces — a blast that destroyed their credibility.


Nevertheless, it is interesting to hear them talk, not because they're fun to listen to, but because of “the messaging” that rich investors use religiously in placing their stock market bets, while the rest of us are given a calming sermon, so that the bankers’ lackeys — the politicians — may continue ruining the country uncontested.

Recently the wise bankers jointly announced that the world economy was “on the verge” of a recovery.  The language was purposely vague: they can't afford to be utterly wrong again and destroy their last shreds of authority.  So they're hedging their bets.  The President of the European Central Bank was extra cautious, saying that the economy was in for a “very bumpy road ahead.”

The truth is they have absolutely no idea what will happen or when. Other mainstream economists are presenting a gloomier picture of the situation.  For example, the flagship publication of corporate America, the Wall Street Journal, recently announced that the accelerating number of bank failures in the U.S. amounted to a “new phase” in the crisis, where built-up junk-debt was beginning to tear down banks at a faster tempo (August, 21, 2009).

Meanwhile, the elitist Economist magazine concluded recently that, instead of a “V shaped recovery” —meaning a quick bounce back — we should prepare ourselves for “a gloomy U [shape] with a long, flat bottom of weak growth… [for] the next few years.” (August 20, 2009).

This type of analysis is now what passes for optimism in mainstream economics.  A “gloomy U” is much better than a “terrifying w” — meaning another potential crash.  Thus, we are told that bailing out the banks averted “utter disaster” and that we should be content if the economy produces a slow, “jobless recovery.”  Of course, the economy has not recovered if millions of people remain unemployed.  Terms like "jobless recovery" were invented to accustom people to suffering, while the mega-profits of Goldman Sachs are presented as “promising signs.”  Indeed, the suffering of millions of people and the profits of corporations have a direct relationship that the media is not discussing.

Big recessions destroy wages and benefits.  The huge reserve of unemployed workers helps employers threaten workers with joblessness if they do not accept lower wages, while other companies force lower wages for “the survival of the company.”  Free market economists rationalize this by calling it a “market adjustment”: the labor market supposedly produced too high of wages for profits to be maintained.

This period is likely to continue for some time.  One reason is that retirement will not be a reality for millions of people who either were unable to save enough or had their savings in 401(k) accounts destroyed by the recession.

An infamous Career Builders poll reported that 73 percent of those planning to retire would delay their retirement for at least six years.  Many older workers, because of the nosedive their 401(k) took, were forced out of retirement to accept low paying jobs, meaning more competition for younger workers.

According to a New York Times Op Ed:

 “…only 28 of every 100 males were employed in the 16-through 19-year-old age group. For minority teenagers, forget about it. The numbers are beyond scary; they’re catastrophic.” (August 10, 2009).

Many other workers have chosen to ride out the recession by going back to school.  While in school — or after graduation — these students become “interns,” a way that many employers are using to replace paid workers.

The New York Times Notes:

“With paying jobs so hard to get in this weak market, a lot of college graduates would gladly settle for a nonpaying internship. But even then, they are competing with laid-off employees with far more experience.” (August 10, 2009).

In addition to internships, many other unemployed workers are simply doing volunteer work to build their resumes.  All of these good intentions are used by employers to drive down wages or eliminate paid positions entirely.

The mass joblessness is creating a tense, dog-eat-dog situation for millions. Rather than blame the crisis on the bankers and others profiting from the recession, society’s most vulnerable people — immigrants — are likely to be the continued targets.

But targeting immigrants will not improve the lives of workers.  This can be done only by collectively confronting their employers and demanding higher wages and benefits. If necessary, workers must demand and organize to keep their jobs from being shipped off-shore to prevent companies from searching for literal slave wages.

For unemployed workers, organizing with demands on local and federal governments for a real stimulus program to create jobs is an absolute necessity.  Obama’s first stimulus has been an obvious failure: not only was it too small, but much of it was dedicated to tax breaks and not job creation.

The economy is not going to correct itself.  Powerful interests are bailing out banks while pushing down wages and will continue to do so until they are pushed back.

A job-creating stimulus that pays living wages will help ease tremendous suffering.  But such a program is unlikely to be given to us by the corporate-owned Democrats.  It must be taken.

Throughout this economic crisis the Democratic Party has eagerly served the interests of the rich:  It refused to pass serious legislation that would have greatly helped working people avoid foreclosures on their homes; it is abandoning the option of a government-run health care program; it refused to pass EFCA, the Employee Free Choice Act, which would have removed barriers to forming unions; it has given billions of bailout dollars to reckless bankers; it refused to nationalize the banks, so they could begin to operate in everyone’s interests, and not just the rich; it has continued to fight foreign wars that benefit giant corporations only, while not restoring civil liberties at home; and it has failed to promote a massive job creation program that would have the potential to alleviate the suffering of millions of U.S. workers.

The lesson of this economic crisis is becoming starkly clear: working people will have to create their own political party dedicated to fighting for their own interests.  Such a party will not come into existence on its own.  Rank and file union members, community organizations, and the unemployed must begin organizing now to promote policies that the Democrats have refused to touch.  A giant coalition of progressive forces working towards these goals can easily transform itself into a political party capable of brushing aside the two parties of big business.

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org).  He can be reached at shamuscook@yahoo.com

Shamus Cooke is a frequent contributor to Global Research.  Global Research Articles by Shamus Cooke

© Copyright Shamus Cooke , Global Research, 2009

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules