Spree Spending

Americans are giddy as they spend every last penny they have on Christmas gifts this year. It's almost as if they know this may be the last time they can spree spend before the whole shebang goes down the tubes. The federal government is leading the way.

The US government spent $2T in 2010 after spending $1.23T in 2009. As tax revenue declined the feds increased spending by 37%, increasing the US debt to $13.8T.

32 states have borrowed $37.8B from the US government to pay unemployment benefits. The US economy created a whopping 39,000 new jobs in November. The economy needs to create 250,000 jobs per month to keep up with population growth.

I hired an experienced technician last week at two-thirds the median BLS national and local rate. He's happy to be working but he'll just get by. That's the real story beyond the unemployment in this depression. Those people making 2/3 what they did before the crash won't paying taxes or buying consumer goods. They'll be struggling to keep a roof over their head, lights and heat on and food in their belly.

Our local economic development director wrote a column in the local paper that was just giddy about our "thriving economy".  You see, companies are investing locally to retain jobs. Almost $1B in equipment that won't create even one new job. And we have new sidewalks in the decaying downtown, so lawyers won't stumble as they file paperwork at the courthouse to foreclose on all those mortgages.

The ship is slowly sinking but the narrative goes on. Extend and pretend. Spend every cent you have, max out your credit and spend some more.