Everything is just wonderful in the markets, but America is falling apart.
By Daniel at 5 November, 2009, 7:17 pm
Americans on food stamps tops 36 million, new record
Wed Nov 4, 2009 1:17pm EST
WASHINGTON (Reuters) - The number of Americans receiving food stamp assistance soared above 36 million for the first time in August, the eighth month in a row that enrollment set a record, the U.S. Agriculture Department said on Wednesday.
USDA said 36.492 million people were receiving food stamps, also known as the Supplemental Nutrition Assistance Program. In July, enrollment stood at 35.851 million. At the current rate, an estimated one in eight Americans receive benefits.
The program, which helps poor people buy food, has seen enrollment jump by 4.707 million during 2009 amid a lingering economic downturn in the United States. Participation grew by 2 million people from May to August.
In the latest data, the average person received $132.99 in August, compared with $101.31 in August 2008.
We have recently heard from the financial media that we are in “the sweet spot” as far as the economy is concerned, I’m sure there were some Katrina victims that said the same thing as the eye passed over them. Do you remember the “Goldilocks” economy? Low rates, low inflation, steady growth, blah blah blah. “They” are saying the exact same things again today and more. Now we are hearing “the worst is over, not as bad as expected, earnings beat the street, sweet spot” etc.. “They” didn’t forecast what we have already been through. “They” didn’t even see a recession coming much less a financial implosion that would suck many Western governments into a giant black vortex of bankruptcy.
As I see it we are currently in a government created cataclysmic “lull” that requires massive spin 24/7 to keep balanced. The West has printed and borrowed (and plans to borrow) massive currency amounts that did not and do not currently exist without more central bank currency and credit creation. And the result so far? “Things are less bad”! Less bad? Yes, because things are “less bad” they must be better right? Wrong! The banking system is worse than last year but we can’t see the reality behind the curtain because the banks (with government permission and prodding) show us earnings based on $ billions of free government money and false marks on virtually worthless derivative assets.
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