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Saturday, July 18, 2009

Larry Summers Lies Again

On Friday, Larry Summers spoke to the Peterson Institute for International Economics, a Washington think tank. He said the government's $787 Billion stimulus plan was on track and doing just fine. Which is the best evidence that I can think of to prove that Summers either has no idea what is actually happening, or does not care as long as Goldman Sachs continues to get rich.

There are two outstanding characteristics of the Business Cycle when a Contraction begins. The first is rising job losses and the one that closely follows is tightening credit. Both of those characteristics are running rampant in the economy today and nothing the government has done to date shows any sign of changing that fact.

The jobless rate is currently 9.5% and shows every indication of continuing to go up. The core business of banking-lending money-is in the tank as defaults on existing loans continue to rise and banks respond by tightening loan standards.

But wait, it gets worse. Summers also said the obscene profits recorded by the major banks this year (profits that were made possible by tax payers money), "...were a positive sign for the economy".

Now, by all accounts, Summers is a very bright guy so he has to know he is lying and trying to put a good face on the enormous amount of your money that has been transferred to Goldman Sachs.

The U.S. Treasury Department is out of control and being run by Goldman Sachs. That is not in your best interests. Be afraid, very afraid!

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