Economist debunks government spin that the U.S. is on the road to recovery

David Rosenberg, chief economist for the Gluskin Sheff investment firm, dismisses any positive notion of the state of the U.S. economy in his latest research note, an excerpt of which follows:

"Congress moved to extend jobless benefits seven times, as has been the case over the past two years, at a time when almost half of the ranks of the unemployed have been looking for at least a half year.

"The unemployment rate for adult males (25-54 years) hit a post-WWII this cycle and is still above the 1982 recession peak, and the youth unemployment rate is stuck near 25%. These developments will have profound long-term consequences - social, economic and political.

"The fiscal costs of the depression continue to mount, with the White House on Friday raising its deficit projection for 2011 to $1.4 trillion from $1.267 trillion. That gap in the forecast - $133 billion - was close to the size of the entire budget deficit back in 2002. Amazing.

"You also know it is a depression when you find out on the weekend that the FDIC seized and shuttered another seven banks, making it 103 closures for the year. What a recovery!"

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