By Sol Palha ( 

Is this economic recovery real? Well, if you base your observations on how far the Dow has risen since the financial crisis of 2008 the answer would be a yes – but if you do just a little cursory digging you will notice that this economic recovery is nothing but a grand illusion. The following 8 factors clearly prove that this recovery is not real.


A leading indicator is in a death spiral so all must not be well. It is trading at multi-year low. If the economic recovery were real copper would be trending upwards. 

2. The Baltic Dry Index

This leading indicator appears to be locked in a race to the bottom with copper…[It] should be trending upwards and not at multi-year lows.

3. Unemployment Numbers 

The data the BLS puts out does not give you a real picture of what is going on. According to the BLS, the unemployment rate is roughly 5% but according to ShadowStats the unemployment rate was 22.9% in December of 2015.

4. Wage Stagnation 

Real wages have been declining since 2000. In fact, $22.41 today has the same purchasing power an hourly salary of $4.03… [had] in 1973. 

5. Student Debt

Student debt is a time bomb waiting to explode. It stands at $1.3 trillion and is growing roughly at a rate of $2,800 every second.As of June 2015, 11.5% of the debt was delinquent for at least 90 days according to Bloomberg.40 million American now are carrying some form of student loans. 70% of college students graduate with debt, and there is no guarantee of landing a job upon graduation.  The department of education has stated that the by 2025 this debt is set to surge to almost $2.5 trillion.A massive default here will make the financial crisis of 2008 appear to be a walk in the park.

6. U.S. Debt

…[The U.S. is] creating new debt at a mind-boggling rate…[It is now] $19 trillion and there appears to be no end in sight- it is projected to soar to $30 trillion by 2026. The U.S is never going to be able to repay this debt…and should interest rates ever move higher, it could [even] have a hard time making payments on such a huge amount of debt. Even if rates remain low, at some point debt payments are going to start to hurt.

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