"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain
If you want to fully understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analyses, you will need to learn how to think clearly if you already lack this vital skill.
For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.
The best way to begin clearing your mind is to move forward with this series of steps:
1. GET RID OF YOUR TV SET, AND ONLY USE STREAMING SERVICES SPARINGLY.
2. REFUSE TO USE YOUR PHONE TO TEXT.
3. DO NOT USE A "SMART (DUMB) PHONE" (or at least do not use your phone to browse the Internet unless absolutely necessary).
4. STAY AWAY FROM SOCIAL MEDIA (Facebook, Instagram, Whatsapp, Snap, Twitter, Tik Tok unless it is to spread links to this site).
5. STAY OFF JEWTUBE.
6. AVOID ALL MEDIA (as much as possible).
The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.
You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after two sociologists who described it in a research publication. See here.
Many people today think they are virtual experts on every topic they place importance on. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets and bogus online sources. The more information these individuals obtain on these topics, the more qualified they feel they are to share their views with others without realizing the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth. Furthermore, online sources are even more dangerous for misinformation, especially due to the fact that search algorithms have been designed to create confirmation bias.
A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are often politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements, and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests to interview based on the agendas they wish to fulfill with their advertisers rather than interviewing unbiased experts who might share different viewpoints than the host.
Once the audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media.
Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV. They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong. But they have developed confidence in speaking about these topics due to an inflated sense of expertise in topics for which they continuously demonstrate their incompetence.
One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.
We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason. From there, we recommend other classics from Greek philosophers. After all, ancient Greek philosophers like Plato and Socrates created critical thinking.
If you can learn how to think like a philosopher, ideally one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick, or multi-level marketing (MLM) crowd.
If you want to do well as an investor, you must first understand how various forces are seeking to deceive you.
Most people understand that Wall Street is looking to take their money.
But do they really understand the means by which Wall Street achieves these objectives?
Once you understand the various tricks and scams practiced by Wall Street you will be better able to avoid being taken.
Perhaps an even greater threat to investors is the financial media.
The single most important thing investors must do if they aim to become successful is to stay clear of all media.
That includes social media and other online platforms with investment content such as YouTube and Facebook, which are one million times worse than the financial media.
The various resources found within this website address these two issues and much more.
Remember, you can have access to the best investment research in the world. But without adequate judgment, you will not do well as an investor.
You must also understand how the Wall Street and financial media parasites operate in order to do well as an investor.
It is important to understand how the Jewish mafia operates so that you can beat them at their own game.
The Jewish mafia runs both Wall Street and the media. This cabal also runs many other industries.
We devote a great deal of effort exposing the Jewish mafia in order to position investors with a higher success rate in achieving their investment goals.
Always remember the following quotes as they apply to the various charlatans positioned by the media as experts and business leaders.
“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.” - King James Bible - Matthew 7:15
"It's easier to fool people than to convince them that they have been fooled." –Mark Twain
It's also very important to remember this FACT. All Viewpoints Are Not Created Equal.
Just because something is published in print, online, or aired in broadcast media does not make it accurate.
More often than not, the larger the audience, the more likely the content is either inaccurate or slanted.
The next time you read something about economics or investments, you should ask the following question in order to determine the credibility of the source.
Is the source biased in any way?
That is, does the source have any agendas which would provide some kind of benefit accounting for conclusions that were made?
Most individuals who operate websites or blogs sell ads or merchandise of some kind. In particular, websites that sell precious metals are not credible sources of information because the views published on these sites are biased and cannot be relied upon.
The following question is one of the first things you should ask before trusting anyone who is positioned as an expert.
Is the person truly credible?
Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media.
Most individuals who have been provided with media exposure are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; those who buy advertisements.
In the case of the financial genre, instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible.
It's much more important to carefully examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day. Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record.
Don't ever believe the claims made by the source or the host interviewing the source regarding their track record.
Always verify their track record yourself.
The above question requires only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.
We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other.
There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis.
Mike has been a professional in the financial industry for nearly three decades.
Alhough he publishes numerous articles and videos addressing the dark side of the industry, the core collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes.
Also, the Image Library contains nearly 8,000 images, most of which are annotated.
At AVA Investment Analytics, we don't pump gold, silver, or equities because we are not promoters or marketers.
We actually expose precious metals pumpers, while revealing their motives, means, and methods.
We do not sell advertisements.
We actually go to great lengths to expose the ad-based content scam that's so pervasive in the world today.
We do not receive any compensation from our content, other than from our investment research, which is not located on this website.
We provide individual investors, financial advisers, analysts and fund managers with world-class research and unique insight.
If you listen to the media, most likely at minimum it's going to cost you hundreds of thousands of dollars over the course of your life time.
The deceit, lies, and useless guidance from the financial media is certainly a large contributor of these losses.
But a good deal of lost wealth comes in the form of excessive consumerism which the media encourages and even imposes upon its audience.
You aren’t going to know that you’re being brainwashed, or that you have lost $1 million or $2 million over your life time due to the media.
But I can guarantee you that with rare exception this will become the reality for those who are naïve enough to waste time on media.
It gets worse.
By listening to the media you are likely to also suffer ill health effects through excessive consumption of prescription drugs, and/or as a result of watching ridiculous medical shows, all of which are supportive of the medical-industrial complex.
And if you seek out the so-called "alternative media" as a means by which to escape the toxic nature of the "mainstream" media, you might make the mistake of relying on con men like Kevin Trudeau, Alex Jones, Joe Rogan, and many others.
This could be a deadly decision. As bad as the so-called "mainstream" media is, the so-called "alternative media" is even worse.
There are countless con artists spread throughout the media who operate in the same manner. They pretend to be on your side as they "expose" the "evil" government and corporations.
Their aim is to scare you into buying their alternatives. This addresses the nutritional supplements industry which has become a huge scam.
Why Does the Media Air Liars and Con Men?
The goal of the media is NOT to serve its audience because the audience does NOT pay its bills.
The goal of the media is to please its sponsors, or the companies that spend huge dollars buying advertisements.
And in order for companies to justify these expenses, they need the media to represent their cause.
The media does this by airing idiots and con artists who mislead and confuse the audience.
By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused.
The financial media sets up the audience so that they become needy after having lost large amounts of money listening to their "experts." Desperate for professional help, the audience contacts Wall Street brokerage firms, mutual funds, insurance companies, and precious metals dealers that are aired on financial networks. This is why these firms pay big money for adverting slots in the financial media.
We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the "mainstream media." Do not be fooled. There is no such thing as the "alternative media." It really all the same.
In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed.
And the same powers that control the distribution of the so-called "mainstream media" also control distribution of the so-called "alternative media."
The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media."
The tactic is a very common one used by con men.
The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties.
In reality, both parties are essentially the same when it comes to issues that matter most (e.g. trade policy and healthcare) because all U.S. politicians are controlled by corporate America. Anyone who tells you anything different simply isn't thinking straight.
On this site, we expose the lies and the liars in the media.
We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.
To date, we know of no one who has established a more accurate track record in the investment markets since 2006 than Mike Stathis.
Yet, the financial media wants nothing to do with Stathis.
This has been the case from day one when he was black-balled by the publishing industry after having written his landmark 2006 book, America's Financial Apocalypse.
From that point on, he was black-balled throughout all so-called mainstream media and then even the so-called alternative media.
With very rare exception, you aren't even going to hear him on the radio or anywhere else being interviewed.
Ask yourself why.
You aren't going to see him mentioned on any websites either, unless its by people whom he has exposed.
You aren't likely to ever read or hear of his remarkable investment research track record anywhere, unless you read about it on this website.
You should be wondering why this might be.
Some of you already know the answer.
The media banned Mike Stathis because the trick used by the media is to promote cons and clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street, gold dealers, etc.
Because the media is run by the Jewish mafia and because most Jews practice a severe form of tribalism, the media will only promote Jews and gentiles who represent Jewish businesses.
And as for radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so ignorant that they assume those who are plastered throughout media are credible.
And because they haven't heard Stathis anywhere in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure. And they are too lazy to go through his work because they realize they are too stupid to understand the accuracy and relevance of his research.
Top investment professionals who know about Mike Stathis' track record have a much different view of him. But they cannot say so in public because Stathis is now considered a "controversial" figure due to his stance on the Jewish mafia.
Most people are in it for themselves. Thus, they only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads.
This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists.
We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies, and fraud.
We have been banned by virtually every media platform in the U.S and every website prior to writing about the Jewish mafia.
Mike Stathis was banned by all media early on because he exposed the realities of the United States.
The Jewish mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street, corporate America, free trade, U.S. healthcare, and much more.
Stathis has also been banned by alternative media because he exposed the truth about gold and silver.
We have even been banned from use of email marketing providers as a way to cripple our abilities to expand our reach.
You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it.
BUT YOU CANNOT TALK ABOUT THE JEWISH MAFIA.
Because Mr. Stathis exposed so much in his 2006 book America's Financial Apocalypse, he was banned.
He was banned for writing about the following topics in detail: political correctness, illegal immigration, affirmative action, as well as the economic realities behind America's disastrous healthcare system, the destructive impact of free trade, and many other topics. He also exposed Wall Street fraud and the mortgage derivatives scam that would end of catalyzing the worst global crisis in history.
It's critical to note that the widespread ban on Mr. Stathis began well before he mentioned the Jewish mafia or even Jewish control of any kind.
It was in fact his ban that led him to realize precisely what was going on.
We only began discussing the role of the criminality of the Jewish mafia by late-2009, three years AFTER we had been black-listed by the media.
Therefore, no one can say that our criticism of the Jewish mafia led to Mike being black-listed (not that it would even be acceptable).
If you dare to expose Jewish control or anything under Jewish control, you will be black-balled by all media so the masses will never hear the truth.
Just remember this. Mike does not have to do what he is doing.
Instead, he could do what everyone else does and focus on making money.
He has already sacrificed a huge fortune to speak the truth hoping to help people steer clear of fraudsters and to educate people as to the realities in order to prevent the complete enslavement of world citizenry.
Rule #1: Those With Significant Exposure Are NOT on Your Side.
No one who has significant exposure should ever be trusted. Such individuals should be assumed to be gatekeepers until proven otherwise. I have never found an exception to this rule.
Understand that those responsible for permitting or even facilitating exposure have given exposure to specific individuals for a very good reason. And that reason does not serve your best interests.
In short, I have significant empirical evidence to conclude that everyone who has a significant amount of exposure has been bought off (in some way) by those seeking to distort reality and control the masses. This is not a difficult concept to grasp. It's propaganda 101.
Rule #2: Con Artists Like to Form Syndicates.
Before the Internet was created, con artists were largely on their own. Once the Internet was released to the civilian population, con artists realized that digital connectivity could amplify their reach, and thus the effectiveness of their mind control tactics. This meant digital connectivity could amplify the money con artists extract from their victims by forming alliances with other con artists.
Teaming up with con artists leads to a significantly greater volume of content and distraction, such that victims of these con artists are more likely to remain trapped within the web of deceit, as well as being more convinced that their favorite con artist is legit.
Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps." This is a very important rule to remember because con men almost always belong to the same network. You will see the same con artists interviewing each other,referencing each other, (e.g. a hat tip) on the same blog rolls, attending the same conferences, mentioning their con artist peers, and so forth.
Rule #3: There's NO Free Lunch.
Whenever something is marketed as being "free" you can bet the item or service is either useless or else the ultimate price you'll pay will be much greater than if you had paid money for it in the beginning.
You should always seek to establish a monetary relationship with all vendors because this establishes a financial link between you the customer and the vendor. Therefore, the vendor will tend to serve and protect your best interests because you pay his bills.
Those who use the goods and services from vendors who offer their products for free will treated not as customers, but as products, because these vendors will exploit users who are obtaining their products for free in order to generate income.
Use of free emails, free social media, free content is all complete garbage designed to obtain your data and sell it to digital marketing firms.
From there you will be brainwashed with cleverly designed ads. You will be monitored and your identity wil eventually be stolen.
Fraudsters often pitch the "free" line in order to lure greedy people who think they can get something for free.
Perhaps now you understand why the system of globalized trade was named "free trade."
As you might appreciate, free trade has been a complete disaster and scam designed to enrich the wealthy at the expense of the poor.
There are too many examples of goods and services positioned as being free, when in reality, the customers get screwed.
Rule #4: Beware of Manipulation Using Word Games.
When manipulators want to get the masses to side with their propaganda and ditch more legitimate alternatives they often select psychologically relevant labels to indicate positive or negative impressions.
For instance, the financial parasites running America's medical-industrial complex have designated the term "socialized medicine" to replace the original, more accurate term, "universal healthcare." This play on words has been done to sway the masses from so much as even investigating universal healthcare, because the criminals want to keep defrauding people with their so-called "market-based" healthcare scam, which has accounted for the number one cause of personal bankruptcies in the USA for many years.
When Wall Street wanted to convince the American people to go along with NAFTA, they used the term "free trade" to describe the current system of trade which has devastated the U.S. labor force.
In reality, free trade is unfair trade and only benefits the wealthy and large corporations.
There are many examples on this play on words such as the "sharing economy" and so on.
Rule #5: Whenever Someone Promotes Something that Offers to Empower You, It's Usually a Scam.
This applies to the life coaches, self-help nonsense, libertarian pitches, FIRE movement, and so on.
If it sounds too good to be true, it usually is.
Unlike what the corporate fascists claim, we DO need government.
And no, you can NOT become financially independent and retire early unless you sell this con game to suckers.
Rule #6: "Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain
Following this rule is forcing the small and dewindling group of intelligent people left in the world to cease interacting with people.
You might need to get accustomed to being alone if you're intelligent and would rather not waste your time arguing with someone who is so ignorant, that they have no chance to realize what's really going in this world.
It would seem that Dunning-Kruger has engulfed much of the population, especially in the West.
Originally Published on Press TV, October 30, 2012
In many respects, much if not all of the economic gains made in the United States from the past decade have been wiped out due to Wall Street malfeasance. Looking forward, I expect America to lose at least another decade.
While some of the economic turmoil is certainly due to the biggest real estate collapse in U.S. history, a much larger portion is the result of the weak job market which is likely to persist for a number of years.
Although the real estate market appears to have bottomed, you should not expect anything other than a very gradual rise from here. In the absence of bubble conditions, the rate of real estate appreciation generally tracks that of inflation.
The biggest lift to the real estate market would come from lasting improvements in the job market. Thus, it’s important to identify the real reasons for the persistently high unemployment rate so that adequate solutions can be designed. If the factors accounting for the continued weakness in the labor market are not addressed, America stands a good chance to lose much more than a decade.
Establishment economists have offered some ridiculous explanations when trying to account for the high unemployment rate. The purpose of this propaganda is to distract attention away from misguided economic policies put in place by America’s fascist government.
Before we discuss the establishment’s explanation of the high jobless rate, let’s examine some facts about the U.S. labor market.
• Since mid-2009, there have been between 3.5 and 6 unemployed Americans for every job opening. This means jobs have been in short supply. This ratio is roughly double what it was in the last recession in 2001. This data reflects, in large part, that job openings are one-fourth lower now than they were in the last recovery.
• In the first 12 months of the so-called “recovery” there were 32 million job openings. While this may sound like a large number, it was 10 million fewer openings than the first 12 months of the prior recovery, which was known for being a so-called jobless recovery.
• The shortfall in job openings during the current “recovery” compared to the previous one is widespread. Job openings continue to be small in number in nearly every sector including labor intensive service industries such as hospitality, entertainment, and accommodation.
• Layoffs during the early stages of this “recovery” are comparable to those in the prior recovery, and thus cannot explain the lasting high unemployment rate.
Arguments Used by the Establishment
Two arguments are being debated by America’s establishment economists as the cause of the persistently high unemployment rate. Each argument has been offered in order to hide the real cause from the American people. It turns out that both arguments are supportive of America’s fascist agendas which go hand in hand with the economic mandates of globalization. Let’s take a look at each of these viewpoints.
Establishment economists working for the left-wing contingency of America’s fascist government claim that the high unemployment rate is a consequence of what is known as cyclical unemployment. This theory argues that unemployment is related to changes in demand that occur through business and economic cycles. In other words, the unemployment rate remains high due to low economic demand. This is a viewpoint that is utilized in order to justify government spending during economic contractions. During the first two years of the Obama presidency, the cyclical unemployment argument was unanimously accepted.
Establishment economists working for the right-wing contingency of America’s fascist government claim that the stubbornly high unemployment rate is due to structural factors. This is known as the structural unemployment argument. This argument essentially places the blame on unemployed workers.
The Republican Party has embraced the structural unemployment argument when stating its case against additional economic stimulus, all while maintaining favorable tax treatment for corporations and wealthy individuals. More recently, this argument has also gained acceptance by the Obama administration after various economic programs have failed to bring the unemployment rate down to more reasonable levels.
Overall, the structural unemployment argument is more widely accepted by the nation’s establishment economists. So in other words, politicians and economists are once again placing blame on Main Street for something caused by Wall Street and corporate America; truly amazing.
The Weak Demand Argument
Superficially, the high unemployment rate points to lack of demand; the argument posed by left-wing establishment economists, otherwise referred to as cyclical unemployment.
During the early stages of the economic collapse, Washington sided with this argument. In order to resolve the cyclical unemployment issue, Obama passed numerous stimulus packages (the American Recovery and Reinvestment Act of 2009, car allowance rebates, homebuyers tax credits, payroll tax cuts, etc.) in order to stimulate demand. But once the money was spent, demand disappeared. Thus, these stimulus programs were ineffective.
Throughout Obama’s tenure, the Federal Reserve has also been trying to stimulate job growth, or so it claims, through quantitative easing. But the reality points to a much different outcome. This program has actually provided a hidden bailout to the financial industry at the expense of the nation’s private and public pension system. This is an issue that I will address in the future.
Despite the massive amount of government spending due to various types of economic stimulus, establishment economists from the left, such as Paul Krugman insist on the need for more spending to add a boost to the economy. These are the same economists who now criticize the greed, ignorance and incompetence that led to the previous real estate-credit bubble, yet are trying their best to reflate it again; simply amazing.
So what is Krugman saying?
Is he admitting that the economy is incapable of generating demand on its own after receiving numerous stimulus packages, in addition to several rounds of quantitative easing?
He most certainly is. I have no doubt that Krugman realizes that the fundamental issue preventing job growth is not being addressed. And he isn’t talking about it because after all, he does work for the establishment. This is why his hot air continues to be published throughout America’s tightly controlled propaganda machine.
It is important to keep in mind that Krugman did not predict the financial crisis or economic collapse, which he now calls a depression. None of the economists or investment “pros” positioned as experts in the media made these predictions, despite claims made by the media. This is a statement of fact.
You will also recall that every mainstream economist claimed there was no recession for nearly one year after it began in December 2007. Many of these hacks also claimed that the effects of the real estate correction would not extend into the overall economy. Finally, these are the same shills that insisted that the recession ended in June 2009 and a recovery has since been under way.
In contrast, I was the only person who predicted the financial crisis in detail and the resulting economic collapse in America’s Financial Apocalypse (2006). And I was the only person in the world to lay out a detailed case for a depression in the U.S. just before the problems began to surface. Thus, who are you going to believe, me or hacks in the media like Krugman?
As previously mentioned, the cyclical unemployment argument has served as impetus for excessive economic stimulus packages over the past several years. However, the creation of currency out of thin will not in itself stimulate real or lasting demand.
The economic response from Washington and the monetary policy of the Federal Reserve have failed to reinvigorate economic demand because they have not addressed the fundamental economic problems. These “solutions” have been ineffective and very costly to tax payers.
The Structural Unemployment Myth
Structural unemployment is thought to occur due to mismatches between the skills held by the labor force and those required by employers. For instance, economists supportive of the structural unemployment theory explain the high jobless rate by arguing that displaced workers lack adequate skills, their skills have deteriorated or are no longer useful to industries which are expanding.
In contrast to the cyclical unemployment argument, which has a limited role in accounting for the high unemployment rate, there is no evidence that structural unemployment has been even somewhat responsible for the persistently high unemployment rate. In fact, data from employer job openings, layoffs and hires actually contradict claims of unemployment due to structural issues.
If we are to accept the premise of structural factors as a primary cause of the high jobless rate, it is important to explain how it was possible for millions of previously well-qualified workers to suddenly have lost the skills necessary for employment in such a short period of time. In other words, we must ask how these workers were able to fulfill employer demands just months before losing their job, but no longer possess the skills required to function in the same job. Maybe the corporate world advanced at the speed of light in just a few months, leaving workers’ skills obsolete. Neither of these possibilities is plausible.
The real reason accounting for the sudden loss of jobs is due to the fact that these jobs were created by the real estate-credit bubble. And when the bubble popped, the jobs disappeared. It’s as simple as that.
Now that the economy is no longer being propped up by bubble conditions (although the need to deleverage remains), the corporate world is much more competitive. So instead of hiring in the U.S. along with outsourcing, corporate America is doing a lot more outsourcing and a lot less hiring in the U.S.
Establishment economists representing the right have attempted to stray away from the realities of the real estate collapse by pointing to yet another misguided view supportive of the structural unemployment argument. These are typically the economists you see on investment-related shows or those from Wall Street. According to this view, the depressed real estate market has prevented the jobless from relocating to regions where their skills are in demand.
This is another ridiculous ascertain. Individuals who are tied down to their homes are generally able to pay their mortgage and are therefore gainfully employed.
Perhaps the most ludicrous explanation offered to support the structural unemployment argument rests with the premise that the unemployed do not live in places where there are job openings. This argument ties into the previous one. In other words, the unemployed are immobile because they are unable to sell their home.
Let’s assume that this large group of unemployed workers had greater mobility. Certainly we can identify several million unemployed Americans who have suffered a foreclosure and are therefore no longer tied down to their place of residence. These jobless individuals would naturally relocate to states with lower unemployment, right?
The question is, would there be an adequate number of jobs for them once they relocated to states with lower rates of unemployment?
The answer is no. To confirm this, simply match the pool of some 16 million unemployed workers (official government numbers which are understated) with the job openings in the small handful of states with a low unemployment rate.
According to left-wing economists, the structural unemployment problem can be resolved if workers go back to school and learn new skills. They argue that this would help justify the delays in lowering the unemployment rate due to the time it takes to become reeducated and receive a job offer. But I can guarantee you that this approach would not resolve the labor issues in the U.S.
These same economists have stated that much of the mismatch in skills can be seen in the construction industry. According to the logic offered by the structural unemployment argument, many of these construction jobs will never return. While this is certainly true, the main factor accounting for this reality is that these jobs never should have existed in the first place. The real estate-credit bubble created false demand, which temporarily supported the creation of millions of jobs in the construction, real estate and financial sectors.
If these jobs were created based on real demand, they would not disappear forever. Instead, they would disappear according to cyclical adjustments and reappear during an economic expansion. In other words, they would have reappeared by now since, according to Washington, the U.S. economy has been in recovery mode since June 2009.
The Solution to the Jobless Rate
While a small portion of the labor force remains unemployed due to structural changes, this percentage is not appreciably higher than that seen during recent recessions. In contrast, some of the lost jobs are due to cyclical factors stemming from reduced demand.
The main reason for the persistently high jobless rate in the U.S. is due to poorly structured trade policies which have reduced the incentives for domestic job creation. Thus, the solution to the high unemployment rate is the same as it has been for many years. Free trade must be restructured to make it fair trade.
The effects of America’s misguided trade policy have kept demand low during the current recession, but real demand has been in decline for over two decades. The real estate-credit bubble hid this reality and created artificial demand. Now that this bubble has imploded, Americans are exposed to the real face of the U.S. economy.
Suppression of the Truth by the Media
The critical need to restructure trade policy was one of the main themes behind America’s Financial Apocalypse. I concluded that U.S. trade policy has been the number one factor most responsible for America’s decline. I also stated that free trade was the primary factor responsible for the wealth and income disparity in the U.S.
Criticism of the destructive effects of U.S. trade policy would upset those who control politicians; banks and corporations. Thus, as you can imagine, the book was not well-received by the publishing world or the media. As a result, shortly after America’s Financial Apocalypse was released in late 2006, I was black-listed by the U.S. media, both mainstream and so-called alternative.
You will never hear the trade issue accurately portrayed by economists, politicians and Wall Street fund managers and analysts who have been inducted into the media club. Instead, the media embraces those who make false claims about or distract from free trade, healthcare and other critical issues; Paul Krugman, Ben Stein, Peter Schiff, Nouriel Roubini, Robert Reich and several others, most of which are Jewish. Meanwhile, others who are not part of the tribe are left out of the debate. This is all being done intentionally.
America’s media monopoly is controlled by corporate America and Washington. The purpose of this monopoly is not to report news, as most people assume. Its only purpose is to control public perception. It achieves this control over the masses through selling ads to corporations, which in turn receive favorable propaganda in the media-entertainment complex. This business relationship also helps fulfill the objectives of Washington because Washington and corporate America are one in the same.
Washington does not want Americans to understand the real economic problems facing their nation because it’s all about maximizing corporate profits at any expense, as one would expect from a fascist nation. This is specifically why profits have remained near record-highs throughout the current recession, now entering its 59th month.
Meanwhile, U.S. jobs continue to be shipped overseas. This explains why there has been no increase in real median wages since 1999. Why raise salaries when you can hire workers overseas for lower wages?
In conclusion, the persistently high jobless rate seen in the U.S. is not due to structural factors. At the same time, it cannot be explained fully by economic cycle theory. America continues to suffer from its longest and most severe economic recession in over 130 years. This recession is the first of what will surely be more to come over the next decade.
Once historians and economists figure out what has happened and find the courage to document it accurately, this period will eventually be referred to as America’s Second Great Depression. Unfortunately, by that time it will be too late for those who stand to lose the most.
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