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TheOnlyThingsThatMatter…AndNoOneTalksAbout
Today,mostpunditsaregrowingincreasinglyconcernedthatweareheadedfora“doubledip”recession.IthinkthisviewisidioticastheUS“recovery”wasinfactnothingmorethanasmallbounceineconomyactivitywithinthecontextofa
DEPRESSION.
Regardless,thestoogesareoutagaininfullforceproclaimingthattheUSeconomyisintroubleagain(duh),thattheStimulushighiswearingoff(duhagain)andthattheonlysolutionistoissuemoreStimulusandmoneyprintingtostopanothereconomiccontraction(WHAT!?!).Let’sbehonesthere.ThemoneyprintingandStimulus
DIDN’T 
worklasttime.Allitdidwasbuytime.Indeed,fromaneconomicperspective,theonlythingtheFedscanclaimwithanycertaintyisthattheStimulusproducedabunchofeconomicdatapointsthatwerequestionableinauthenticity(GDP,inflation,employment,etc)manyofwhichhavesincebeenrevisedlower(GDPagain).IfthebestevidenceyoucancomeupwithforjustifyingStimulusspendingisabunchofaccountinggimmicks,whyevenbotherspendingthemoneyatall?Imean,ifyouwanttomeasuresuccessbyjustfudgingabunchofnumbers,whynotSAVEthemoneyandjustcrankoutabunchofnonsensicaldatafromthinair?Indeed,whynotsaythatwe’vegot17%GDPgrowthandemploymentof500%?
Sureoureconomicresearcherswouldloseallcredibility,butthey’realreadydoingthatanyway,andatleastbysimplymakingstuffupwewouldn’tberuiningtheUS’sbalancesheetandwastingmoneyintheprocess.
ThisrealissuewithUSeconomicpolicytodayisthatnooneinapositionofpoweractuallyhasacluehowtoaddressthestructuralissuesintheUSeconomy.Eitherthat,ortheywillinglyignoretheobviousforthesakeofcareerrisk,choosinginsteadtotakea“wackamole”approachtohandlingeconomicissues:applyingthesamesolution(spendmoney)toeveryproblemthatraisesitshead.ThefactofthematteristhattheUSeconomy,onastructuralbasis,isBROKEN.Startingintheearly‘70s,weoutsourcedourmanufacturingandbeganshiftingtoaserviceseconomy(particularlyfinancialservices).WealsooutsourcedourwealthtoAsia,OPEC,andWallStreet.Becauseofthis,theaverageAmericanhasseenhisincomedramaticallyinthelast30years.Thisisobvioustoanyonewithafunctioningbrain.Fortyyearsagooneparentworkedandpeoplegotby.Todaybothparentswork(iftheycanfindjobs)andstillcan’thaveadecentqualitylife.
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