Once upon a time, Gross National Product (GNP) meant the goods and services that a country produced. But as our economy shifted more toward government and away from the free market, more of the total economy came under the control of the government. So the government changed the definition.
Ladies and gentlemen, I give you (drumroll please) total outstanding credit versus GDP in the United States from 1929 to 2012: Source: St. Louis Fed
This one chart shows exactly WHY we are where we are, folks. From the moment Richard Nixon toppled the US dollar from its golden foundation and ushered in the era of pure fiat money (oxymoron though that may be) on August 15, 1971, there has been a ubiquitous and dangerous synonym for “growth”: credit. The world embarked upon a multi-decade credit-fueled binge and claimed the results as growth.
Edgar Allen Poe vs. The FED Read More »
In today’s article we look at, what effect do the three “D’s” debt, deficits, and demographics have on the economy? Do different generations have different expectations based on the economic environment they grew up in? The past 60 years—which we think of as “normal”— enjoyed a demographic tailwind which we can quantify. It was worth
Gap Developing: Demographic Trends and GDP Read More »
You know they are trying to accomplish this ignominious feat. The goal is to keep Americans in an economic stupor. It is working.
Lies and deceit are pervasive. Newspapers, magazines, TV broadcasts, economic analysis and official prognostications are all based on shady statistics. Junk in… junk out.
Can the Feds Lie Their Way Out of a Depression? Read More »
