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The Wall Street Journal asks a question today:

Can Rally Run Without Revenue?
Investors Wonder Whether Profits Based on Cost Cutting Can Long Endure

No, they can’t.  Beyond the very shortest of short terms, you need rising revenue to generate rising earnings, and for that you need higher consumer spending.

But there’s no sign of that.  This isn’t an ordinary inventory cycle recession, which goes away when inventories tighten back up, or a Fed-induced inflation-fighting recession, which goes away when the Fed eases up on interest rates.  It’s a massive deleveraging recession, and it won’t go away until consumers and businesses pay down their crushing debt loads and start spending money again.

But how?  There are only a few ways for consumers to spend more money, and none of them are anywhere on the horizon.  Wages aren’t going up, employment isn’t going up, the glory days of credit card debt and home equity loans are over, and no one is drawing down their savings to buy bedroom sets these days.  Just the opposite, in fact.

So with consumers actively reducing their consumption in order to pay off debt, what’s going to keep this recovery going?  A few hundred billion dollars in stimulus money?  Not likely.  Unfortunately, with no second stimulus likely to get serious consideration, we’re stuck in the doldrums until deleveraging has run its course.  That’s probably going to take another couple of years.

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We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

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