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Wednesday, May 18, 2011

US Handling of Recession in 2 Words

I was discussing the economy and other financial matters today with a very learned person on the subject, and at one point I was seeking the right term to properly describe the US Government's handling of the ongoing recession, and without hesitating, she expressed the phrase which puts things most succinct:

"Pyrrhic Victory"

To those unfamiliar with that term, it means a victory with devastating cost to the victor; it carries the implication that another such victory will ultimately cause defeat.

The US Govt spent trillions upon trillions of taxpayer dollars which we and future generations will have to repay, to prop banks domestically (and in Europe, Asia and elsewhere), financials, the credit industry, the auto industry and the entire mortgage apparatus simply so people could reclaim a false-feeling of normalcy as quick as possible.  And meanwhile, rich got richer, the middle class is being decimated and the poor.. well God Bless them..

And in the process, the government early on declared 'recovery' and even an 'official' sounding economic council declared the recession over two full years ago in mid 2009. And every single mainstream news article says 'recovery' as if its Fact when its not... and the rigged markets are going up.. and everyone's worried about trivial things like an NFL football lockout and Memorial Day: to grille or not to grille.

So most people are calm and docile,  life moves on & both Government and the Federal Reserve got its Pyrrhic Victory...

And one more such "victory" and the global economy will be in Chaos.

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