Bill Bonner

No matter how absurd things get, they can always become more absurd.

“Summers: US nears ‘escape velocity’

That’s the headline on the weekend Financial Times.

Summers is jubilant. He got the latest employment figures on Friday. They tell the story of an economy that he thinks is headed into outer space, with 162,000 new jobs created in March. Hallelujah…all this intervention by the feds is paying off! Thank God Summers was on the job. If he hadn’t been…well, the economy would have had to get along on its own…right here on planet earth…just like it did for all those centuries up until the feds got control of it during the Great Depression (or shortly after).

Heck, you know how terrible it was back then. People would go broke… Speculators. Bankers. Promoters. They would be wiped out. Jobs would be lost. Businesses would go bankrupt. And then, a few months later, they’d have to get back on their feet…begging, borrowing, or stealing enough capital to make a fresh start.

But now things are different. Now, we have a better world, designed in part, by Mr. Summers himself. Now, people don’t go broke. Well, at least, major campaign contributors don’t go broke. They get bailed out. They stay in business. The feds give them money so they can keep doing what they did before. And then, the feds put a booster rocket under the whole economy…

Yes, dear reader…this is a happy day for Summers. But it also marks a giant stoop for mankind. Finally, man is free from the discipline of the market system. Now, Werner von Summers et al are on the case. So you can forget about anything really bad happening. Now, it’s to the moon and beyond…growth and prosperity from here to kingdom come.

Summers is not crazy. He is merely lost in space. He thinks you can manipulate the economy all you want…like solving an engineering problem…well…like sending a man to the moon. But you could say that about almost all modern economists. At about all those that don’t agree with us.

The other 2 or 3 are muttering to themselves while rummaging through trashcans hoping that someone left a little liquor in the bottle before throwing it away.

At least our president has his feet on the ground. Obama believes the US has “turned the corner” on the jobs issue.

But wait. The private sector added 123,000 jobs last month. According to our sources it needs to create 100,000 just to stay even with population growth.

So, we’re not at all sure that 23,000 jobs is really that great after two years, 8 million job losses and $10 trillion of stimulus.

Let’s see, at that rate, it will take approximately 320 years to get back to full employment…doesn’t sound like ‘escape velocity’ to us. We’ve seen Amtrak trains going faster. Maybe we’re missing something.

Bill Bonner
for The Daily Reckoning

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily ReckoningDice Have No Memory: Big Bets & Bad Economics from Paris to the Pampas, the newest book from Bill Bonner, is the definitive compendium of Bill's daily reckonings from more than a decade: 1999-2010. 

  • 99 cent Nation

    Some people will do just about anything to look as if there thinking was correct. Summers is a case in point. Good article.

    Like .99 cents is so much lower than $1.00. Pitiful

  • BoogerMclaine

    buy, Buy, BUY!

    (Because Harry needs someone to sell to)

  • jason

    Here we have evidence that the stimulus package did benefit the plutocrats. Our idle rich are a source of great national pride for the US, while most ordinary US people struggle to make ends meet. The US has reverse socialism at its best.

  • theophiluspunofall

    Well, well. Harry’s identity has finally been revealed.

  • Sam Drukman

    I doubt that even 23,000 jobs were really created on a net basis. The birth/death model used by the BLS has an extreme positive bias built in. Ever since this Depression began, the have had to consistently revise downward prior periods based as the real figures come in.

    Both anecdotal and household survey data, do not support any net job creation.

    Of course the Feds are well aware of this and other descrepencies in the data that create headline economic numbers.

    Thank goodness for sites such as this that tell the truth!

  • camabron

    …and don’t forget 50,000 of those jobs are temporary census jobs.

  • tony bonn

    the only things you are missing are the hopium and the crack….take a few hits of those and you can talk like an indonesian….

  • daddysteve

    I see my comment on the previous article is more appropriately left here – The worldwide market is too big and complex of a system to be “controlled” in an orderly fashion. Those who profess the ability to do so are leading us down the path to destruction. Moral of the story…die Fed,die!

  • mmm

    so overheated with the stock market up 60 percent that interest rates are still at what? hundred year lows?…..bogus rip offs…..guess they will never put their money where their mouth is….

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