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U.S. Economic Woes

July 12th, 2011

Despite the attempt by statisticians to bend and twist the employment numbers to create the illusion of robust job creation in the  United States, even those manipulated numbers could not conceal the bitter reality; the U.S. has effectively zero job creation, with 150,000-200,000 additional job-seekers coming into the labor market each month. Officially, the American unemployment rate rose to 9.2 percent, while more credible unofficial estimates  exceed 20 percent.

The structural mega-deficits have failed to increase employment in the United States, and now President Obama and Congress are deadlocked on the issue of raising the debt ceiling. The ugly truth is that America is effectively insolvent. It can only pay interest on its debts by accruing more debt. This cannot end well.

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