Soaring Debt = Slow Growth = Even More Debt = Systemic Crisis
DollarCollapse.com, June 5, 2017
Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s – the years of the Great Depression.
The hard fact is that the past decade’s $10 trillion in deficit spending has produced the worst economic growth as measured by Gross Domestic Product in our nation’s history. This stagnant, new normal, low-growth economy is leaving millions of working age people behind who have given up even trying to participate.
All the “fixes” have fatally weakened the real economy, and created a dangerous illusion of “wealth,” “growth” and solvency.
1. Massive expansion of debt: sovereign, household and corporate, all in service of a) bringing consumer demand forward b) fiscal stimulus funded by debt c) corporate stock buybacks to boost stock valuations d) asset bubbles in real estate, bonds, stocks, bat guano futures, etc.
2. Monetary stimulus, i.e. creating and distributing money at the top of the wealth/power pyramid so corporations and the super-wealthy could buy more assets with free money for financiers issued by central banks.
3. Gaming statistics such as unemployment and metrics such as stock indices to generate the illusion of “growth,” “stability” and “wealth.”
4. Saying all the right things: the “recovery” is creating millions of jobs, inflation is low, virtue-signaling is more important than actual increases in inflation-adjusted wages, etc.
The cost of maintaining the illusions of “growth,” “stability,” “wealth” and solvency is extremely high, and hidden from view: systemic fragility has increased to the point of brittleness.
The mount of currency governments have created and dumped into the marketplace – have soared in the past decade. Note that this is not solely – or even especially – a US policy issue. The central banks of China, Europe and Japan are inflating more aggressively than the Fed.
The result of that insane level of money printing? Asset values relative to GDP are at record levels.
What’s amazing is that monetary stimulus on this scale produces soaring asset prices yet only Depression-level real growth. And the crisis that follows is, unfortunately, just as predictable.
Между тем, здешние политиканы, «эксперты», подконтрольные ЦРУ СМИ продолжают нахваливать псевдодемократическую Америку.
Те, кто любит «наших американских партнеров», «забывают» о грязных, злых уродах США.
О таких монстрах, как коварный и крайне опасный мошенник, расист, лжец, и убийца Дональд Трамп. И о таких, как порочный Конгресс США, фашистские ФБР и ЦРУ, лживые американские СМИ…
Арнольд Локшин, политэмигрант из США