SGM Metals: Food Stamp Usage Sets Record Highs Month After Month?

Currently people are starting to add up all the facts & realizing there is no recovery in sight. With foodstamp usage setting record high after record high the economy is being seen for what it is. A growing dependency class that the govt cant afford
A picture is worth a thousand words, look at the increase month after month
A picture is worth a thousand words, look at the increase month after month
Oct. 12, 2012 - PRLog -- reports: [ While the 0.4% “perfectly unmanipulated & totally coincidental swing in the unemployment rate” in an Obama favorable direction one month before the election came at a prime time moment for the market, one hour ahead of the open, setting the market mood for the rest of the day (which despite all best efforts still closed red, valiant efforts by Simon Potter and the FRBNY’s direct pipe to Citadel notwithstanding), there was one other, far more important data point released by the government’s department of agriculture, sufficiently late after the market close to impact no risk assets. That data point of course was food stamps (or the government’s Supplemental Nutrition Assistance Program, aka SNAP), and we are confident that no readers will be surprised to learn that food stamp usage for both persons and households, has jumped to a new all time record.

At 46,681,833 persons hooked on SNAP, the July number crossed the previous record posted a short month before, as the food stamp curve continues ‘plumbing’ newer and greater heights each month.

More disturbing is that in the same month, the number of US households reliant on food stamps rose by a whopping 99,493 to 22,541,744. Assuming a modest 2 persons per household, the increase means that more people went on food stamps in the month of July than found jobs (181,000 according to the latest revised NFP data). Furthermore, it appears that buying votes has become a tad more expensive in the past month. After the benefit per household dipped to a record low in April at just $275.81, this has since retraced some of its losses and is now at an inflationary $277.92. Oh well: inflation.

Adding the number of disability recipients in the month of July, which in that month rose by 20,474, and one can see why the government is quite happy with dumping this particular release long after everyone was on their way back home for the weekend.

Finally, and putting it all into perspective, since December 2007, or the start of the Great Depression version 2.0, the number of jobs lost is 4.5 million, while those added to food stamps and disability rolls, has increased by a unprecedented 21 million. Oh and about $7 or $8 trillion in debt. Who’s counting really.

And this is the real and only key economic statistic of today that nobody wants to talk about, because it is equally the fault of both parties ]

This is the “REAL” economic statistic that needs to be digested before anyone runs around yelling the recovery that started supposedly in June of 2009 is gaining steam. How exactly is it possible to have lost 4.5 MILLION jobs since the start of 2008, coupled with 21 MILLION people who can’t afford to feed their families without government assistance lead to a recovery? This is all draped over a background where the reckless banks have been given TENS OF TRILLIONS in free tax payer funded bailouts & refuse to lend a single dollar to those struggling whether they be small business’s who employ upwards of 90% of workers in America or simply individuals who are looking to consolidate their debt to be more economically stable! If everybody needs a little ‘financial help’ to make ends meets currently and the government is collecting the lowest volume of tax revenue due to the lack of economic activity as a result of the struggling economy, how can the govt. afford to dole out federal goodies to an ever increasing volume of recipients EVERY MONTH?

There are two main economic theory camps that you can subscribe to: 1. The Keynesian model where you opt to go the route of deficit spending (go into debt to create economic activity that ‘should pay for itself’ eventually) to stimulate the economy & 2. The Milton Freidman model where you simply print money & monetize the nations debt (newly injected capital ‘should’ in theory encourage spending & investing which ‘should’ create economic activity that ‘should’ evolve into a recovery, ‘attempt’ to export the inflation to foreign nations while ‘hoping’ you can mop up the excess liquidity in time before you destroy the life savings of the tax payers you need to spend money at home). These two economic theories CAN NOT coexist with one another as they are diametrically opposed to one another. Oddly since the housing crash of 2008 the “shot callers” in DC & Wall Street have somehow managed to pursue BOTH at record breaking paces? So you have historical deficit spending & historical levels of money printing at the same time? How can this work you ask? Great question! The outcome of this brilliant bipolar economic solution is a GDP forecast for the next 12 months that came in just under 1.5% which in economics is called “THE ECONOMIC STALL SPEED”. For an economy to simply function under its own weight it needs a minimum GDP of 1.5% just to keep the heart beat going and our forecast for the next year is just under that level & somehow we are in a recovery? If you are flying a plane & you don’t maintain your minimum speed you will enter ‘stall speed’ the plane will tumble to the earth in free fall, economies work the same way but with far more casualties.

Just because a guy in a suit inside the talking box isn’t telling you this doesn’t mean its not true. Trust me, unfortunately its very true & the just because over 300 million people have all played their part in the “deny the Greatest Depression of 2012” game doesn’t mean it will go away. Instead it will huff & puff until it blows all the houses down. I have noticed an alarming trend (too many to mention to be honest) that Im afraid will make this whole thing far worse than it ever needed to be. The ‘left/right paradigm’ has conditioned the nation to believe that if you toss the ‘the guy who screwed everything up’ out of the presidency & put ‘your guy’ in the hot seat, everything will magically get better. This has conditioned people to take absolutely zero personal responsibility for their own life & made it about switching teams. This has made everyone far too comfortable & will eventually bight everyone in the ass when the herd gets spooked and the panic begins. Enough is enough, establish your “Weak Dollar Insurance Policy” now in physical gold & silver bullion & prepare for the realization that there aren’t any real solutions thus far, just handing trillions out to their banker buddies. Remember that it is a far better strategy to PREPARE your portfolio before the damage begins rather than attempting to REPAIR it after the damage is done. Inflation can become hyperinflation, recessions can become depressions & currency wars can become real wars. Tick, tock.
Source:SGM Metals & The Elemental Economist
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