Wednesday, April 14, 2010

Another new black

My local Tea Party is gearing up for another froth and drool session on tax day although at least half of them know by now they won't be paying Federal Income Taxes this time or at least less than they paid the year before. You can be damned sure there won't be any of the local Billionaires (there are quite a few) amongst the cracker crumbs.

The Dow is over 11,000 as I write this, investor optimism boosted by earnings reports and economic data. Inflation remains contained at one tenth of one percent, despite the solemn assurances of Weimar style runaway. Retail sales continue to climb more than expected as the economic expansion continues.

"The amount of diesel fuel bought using credit cards at U.S. truck stops increased in March to the highest level in more than a year, indicating the recovery is broadening beyond manufacturing "
says Bloomberg and truck tonnage, which accounts for 68 percent of freight transported in the U.S., increased on a year-over-year basis in February for a third straight month, as truckers benefit from inventory rebuilding, increased exports and stronger sales.

It's getting harder not to call this a recovery, but it would certainly be hard to associate the news with the kind of implosion into economic chaos, a Marxist economy and tyrannical Pol Pot killing fields some of the more extreme viewpoints have been forecasting.
"Bleak is the New Black"
writes Newsweek, but it's in the context of the increasing disparity between the sound and fury and the tale told by economic data.
"America is coming back stronger, better, and faster than nearly anyone expected—and faster than most of its international rivals."
and at present, the Dow is up over 70% in the last year. As to whether we would have turned around earlier if there had been no bailout, no stimulus package and a program of austerity and continued deregulation as the Republicans demanded after 1929 -- it seems harder still to believe that we would be talking about recovery as anything but a cruel joke just now. Even so, despair, panic, and even hysteria are the stock in trade of the Fox News doomers and gloomers - the same folks who blamed pessimist Liberals for "talking down" the solid economy of the Bush years. No, certainly a continued, uninterrupted recovery is hardly a sure thing, but more balanced Republican observers may be beginning to wish the fear mongering Murdoch would reign in his dogs a bit tighter before American voters realize that the last thing the Republicans seem to want is what they want: a recovery.

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