In the conclusion of the most recent Martenson Report on the Shell Game, I mentioned that ‘recovery’ was the most likely path forward. Several of you asked me about that, so I will elaborate on that statement here.
It has always been my contention that our fiscal and monetary authorities were going to flood the world with liquidity – as much as necessary – to create an economic rebound. It was never a question in my mind as to whether they would do this. The only significant questions concerned the amplitude and durability of the recovery. But make no mistake, trillions of dollars flooding the system have to do something and go somewhere.
Right out of the gate, because our fiscal and monetary authorities are captives of the Wall Street crowd, most of the early gains went directly to the Wall Street crowd, predictably (if not maddeningly) enough. But now we are seeing signs that some of that largess is sneaking out into the real economy.
Let’s review the statement and the question:
Chris wrote:
The current market environment , where everyone is seemingly convinced that a recovery is now all but assured, is both encouraging and concerning. Encouraging because that’s most likely true. Concerning because sharp breaks almost always happen during periods of complacency, when everybody seems to be looking the other way. In short, when everyone is complacent, I get concerned, and when people get concerned, I try to remain calm.
Can you clarify what mean about recovery; my take from previous reports was there was no real recovery happening right now. Tom
First, let’s define what we mean by ‘recovery.’ We could either mean “back to former levels” or we could mean “up off the lows.”
Using the second definition, there is no doubt that we are ‘up off the lows.’
Up Off the Lows
Employment is up off the lows.
by joelandsonia 
