The Federal Reserve has quadrupled the money supply since 2008, from 800 billion dollars to 3.2 trillion dollars. Six years later and theyre still propping up the bond market as the labor participation rate has continued to decrease. Add to that the mess that Europe is in with negative interest rates, and you have an abundance of too much money chasing yields. So, an over abundance of money flows into a manipulated US stock market because it has no where else to go. That is not accomplishment, its a blinking red sign pointing to economic collapse that is on the horizon! And the next time we have a collapse like 2008, the Federal Reserve is out of bullets and the whole thing comes apart. Dont think that can happen here? Well every society using fiat currency (Monopoly money) throughout history, has collapsed! Company earnings are up, not due to growth, but to the fact that the Federal Reserve has painted themselves into a corner with artificial low interest rates. Companies are aggressively borrowing cheap money to buy back their stock, therefore reducing the float of the stock and forcing earnings up. As to the fake GDP number, In March 2013, the U.S. government invented a new way of calculating GDP. The Financial Times reported that starting from July 2013, U.S. GDP would become 3% bigger due to a change in statistics. [GDP] now includes R&D spending, art, music, film royalties, books, theatre. This change in GDP statistics has not been implemented elsewhere in the world. So the U.S. is the first to accomplish this rewriting of the GDP number. Research and development (R&D) spending, which shouldn’t even be accounted for as investment, adds a significant amount to the U.S. GDP number. It accounts for around 2% of U.S. GDP. Art, music, film royalties, books and theatre add another 0.5% to U.S. GDP. Another adjustment has been made to pension accounting. Previously, pension spending was included in GDP. After this adjustment however, we also look at the “promise” to pay out pensions. So we are talking about imaginary numbers that are now included in GDP. A last example is found in real estate. Commissions, legal bills and expenditures on real estate transactions are included in GDP as “investment.” Obviously these expenditures aren’t associated with real production. One of the consequences is that comparing the GDP number between other countries and the U.S. is not transparent anymore. It is like comparing apples and oranges. GDP should measure real production (like building a factory) and what the U.S. government added here is not real production. It is a measure of spending in the economy and there are items in the GDP number that don’t add real value to the economy (like writing books). The remaining so called statistics are also false. Im simply amazed at how little liberals know about the economy, but yet are so quick to take credit for what will eventually be an economic collapse. The deficit has increased 9 trillion dollars under Obama, and now stands at 17 trillion dollars. The dollar is being manipulated in the Forex markets but that wont help, when the markets begin to force an interest rate increase that the Federal Reserve will be helpless to stop. Guess what a couple of point interest rate increase does to interest payments on 17 trillion dollars of debt?! So Kallie, who ever is peddling this bullshit to you, has got their head up Obamas ass and doesnt have one God damn clue as to what is going on! And with propaganda like this stupid meme being spread about and accepted as fact, I fear for my country!
Posted on: Sat, 13 Sep 2014 16:07:55 +0000