Are you just shocked by the news that the government can’t produce wealth and prosperity by spending money it doesn’t have?

The markets are. They went up on obviously spurious data which even if taken at face value meant the Census provided the majority of “job growth” in this country. At that time economists were predicting that more than 100,000 private sector jobs would be added in May even though there was no reason (as many of us keep saying) for businesses to expand. As usual, economists were wrong. But this time they were way off in their figures:

June 4 (Bloomberg) — American companies hired fewer workers in May than forecast and workers dropped out of the labor force, indicating government support is still needed to spur economic growth. Private payrolls rose by 41,000, Labor Department figures showed today, trailing the 180,000 gain forecast by economists. Including government workers, employment rose by 431,000, boosted by a jump in hiring of temporary census workers. The jobless rate fell to 9.7 percent from 9.9 percent.

But even the slight drop in unemployment isn’t good news because, as the anemic job numbers show, these people are either working for the Census or their benefits have run out. In accounting practices only a technocrat could devise, people who lose their unemployment benefits or have given up looking for work are no longer counted as unemployed. In other words the “green shoots” of this economy are starting to look like bureaucrat headed weeds that are sucking out the vital nutrients of America’s economic soil.

As I write this the market has just closed down 324 and while the Dow often doesn’t reflect financial reality it is a good indicator of investor’s moods, especially when there are sharp drops like this. But the Dow isn’t the only story, Europe continues to go through economic Armageddon and low U.S. employment is adding to their woes:

LONDON—European shares fell Friday, hit on two fronts after Hungary reignited concerns about debt in Europe and the U.S. reported a disappointing reading on the job market. The euro sank, with traders citing official comments on Hungary’s woes and rumors of derivative problems at Société Générale.

“We won’t comment on market rumors,” a spokeswoman for France’s third-largest bank said, adding, “if we had something to say, we would have said it.” Its stock fell 7.6%.

HSBC Bank caused jitters with a research note to clients in which it downgraded Europe excluding the U.K. to “underweight” from “neutral.” “There remains too much uncertainty about the health of banks, about the future arrangements for the euro, about sovereign debt and about growth for us to want to take risk in this region for the moment,” HSBC said. “We would not necessarily be as gloomy about the medium-term prospects as the consensus, but there are markets which offer less risk and better prospects for growth that we would prefer to be overweight at the moment.”

Other banking stocks fell, particularly those based in Spain, as worries about Spanish debt and the country’s real-estate market heightened. Morgan Stanley cut its price targets for Banco Santander and Banco Bilbao Vizcaya Argentaria; shares in Santander fell 5.8%, while BBVA slid 6.8%. The Stoxx Europe 600 index declined 1.8% to 244.53, wiping out the 1.4% gain of the previous session. The decline pared gains for the week to just 0.2%. Among major national indexes, London’s FTSE 100 fell 1.6% to 5126.00, Frankfurt’s DAX lost 1.9% to 5938.88, and Paris’s CAC-40 skidded 2.9% to 3455.61. All three declined for the week.

What we’re looking at isn’t just a bad recession here, but global collapse as the myth of Keynesian economics and the sustainable welfare state is exploded on the world stage. The money western governments are throwing into “stimulus” and paying out in generous benefits doesn’t exist. It’s an illusion. The total wealth of America, if we taxed every citizen at 100%, wouldn’t cover our debts and most countries are in the same boat. The money the government is throwing around is being sucked out of the private sector, and like the victim of a vampire the private sector is sickening and dying. And the vampire needs more.

Unfortunately there are only a few people left to suck dry and Count Taxula has no plan for what to do next.

Once the new taxes Obama wants go into effect, business in this country will collapse in total. Then who’s going to pay for Census workers?

The jig is up. The Democrats have promised higher taxes to their class warfare-obsessed cult of suicidal leftists and even before those taxes have kicked in private business has stopped producing wealth … the same wealth these leftists need to keep running their class warfare programs. And these numbers will only get worse as small businesses realize that Obamacare creates an environment where they can’t afford to hire new workers and the Democrats have plenty more taxes and welfare state programs where that came from. Large corporations see the writing on the wall as well. Do you think the big insurance companies think they can compete with Obamacare? They’re going out of business soon and if they’re smart they will simply maximize profits until they do. Then they’ll drop hundreds of thousands of unemployed workers into our laps and jet off to private estates. “Good riddance to big insurance!” you say?

But that’s more money the Keynesians won’t have to throw around. Billions in tax revenue and economic activity. Get it?

Keynesian economics is based on neo-Marxist spank fantasies about “the rich” having a never ending supply of money that can be taxed and re-distributed by the state. In this fantasy world people on the teat of the state create demand for goods and services which “helps” businesses and the economy. The problem with this view is no one in the neo-Keynesian loop envisioned by the modern left produces any wealth and there’s absolutely no benefit to trying to produce wealth. Keynesian economists want the state to act as a vulture picking the bones of capitalism, and like any academic who lives in the world of theory none of these ivory tower economists can see that there’s no meat left on the body.

That’s why President Obama can cheer on these job numbers, which are an “unmitigated disaster” according to people who watch such things.

And government “stimulus” has only delayed the inevitable collapses of markets while ensuring those collapses will be catastrophic. April home sales spiked 6% but only because of the tax credit program. Check this animated map of unemployment rates and tell me you see “green shoots” anywhere in America.

Our debt is 90% of our GDP, that’s basically the levels that destroyed Greece. The Keynesians think this is sustainable but let me ask you this: if your family had debts that equaled 90% of your income could you sustain that?

The private sector cannot produce wealth and support a welfare state. Over the past 30 years we’ve moved closer and closer culturally to the European welfare state mindset as teachers indoctrinate children into leftist doctrine and movies like Sicko praise Marxism. So now the most far left President we’ve ever had is making those leftist fantasies reality and the markets are waking up to how Keynesian economics works, and more importantly that when most people say they’re Keynesian they’re using it as a metaphor for communist.

Sorry comrades, but capitalism can’t support the welfare state and as business after business shuts down, whose pockets will you be rifling to pay for Obamacare?