Economic boom fake

Economic boom fake

unemployment, poverty, Cagle, Aug. 16, 2013The U.S. economy in the third quarter supposedly enjoyed strong economic growth of 3.5 percent. But look between the lines and the growth was fake. Reported the L.A. Times:

Government spending surged 4.6% in the third quarter, the fastest annual rate since the fiscal stimulus days of 2009. That came mainly from a huge spike in military spending, which some analysts attributed partly to the U.S. bombing of Islamic militants in the Middle East.

But there has been no budget increase for additional military spending, said Dean Baker, co-director of the Center for Economic and Policy Research in Washington.

“This is capacity that was otherwise sitting idle,” he said. “The blip in spending will probably be reversed” in the current quarter.

This is important because the Federal Reserve Board now is ending its Quantitative Easing — that is, inflation — program. For a while, anyway.

The so-called economic recovery since 2009 has been fueled by a succession of QE’s. This flushed more money into the economy, increasing spending.

But there has been a big problem: Interest rates also have been kept at 0 percent. So with inflation at 2 percent or more (check food and housing prices the last couple of years?), common folks saw their “savings” accounts at banks actually lose money.

No wonder the middle-class has been hit hard, and has shrunk, even during the recovery. Average folks have been hit hard by the Fed’s assault on savings, by Fed inflationism, by massive tax increases and by bureaucratic government assaults of increasing ferocity.

Rich folks saw their stock and property values rise due to the Fed QE series. They got the gold mine, while the middle-class got the shaft.

And that’s before the next recession hits.

 

28 comments

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  1. Brandon
    Brandon 1 November, 2014, 12:23

    This is what Keynesian economics is all about booms and busts. The booms are fake but the busts are painfully real. Do governments learn their lessons? Nope! They return to their vomit economics and make version 2 or 3 and so on so we have more booms and busts.

    We have The Great Default in the future and Keynesian economics will show its true colors.

    See this cool video https://www.youtube.com/watch?v=d0nERTFo-Sk

    Reply this comment
  2. Brandon
    Brandon 1 November, 2014, 12:24

    This is what Keynesian economics is all about booms and busts. The booms are fake but the busts are painfully real. Do governments learn their lessons? Nope! They return to their vomit economics and make version 2 or 3 and so on so we have more booms and busts.

    We will have The Great Default in the future and Keynesian economics will show its true colors.

    See this cool video https://www.youtube.com/watch?v=d0nERTFo-Sk

    Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 1 November, 2014, 16:27

    Why are we creating doomers each and every day. Using the bell curve are there more high enders in private or public servant work % wise?

    Betcha the two populations are similar….

    Reply this comment
  4. T Ted E-- Mind of your Godhead Ted
    T Ted E-- Mind of your Godhead Ted 1 November, 2014, 21:16

    John– Do you think that the fed gov still has the Roswell alien bodies, like in formalin or something? I sometimes wonder if they did, BUT, they moved the bodies over to WTC building 7….and….well…you know….the rest is history….

    Reply this comment
    • John Seiler
      John Seiler Author 2 November, 2014, 18:37

      Ted: I don’t believe in space aliens. At all.

      Reply this comment
      • S Moderation Douglas
        S Moderation Douglas 4 November, 2014, 17:19

        They don’t believe in you, either. That doesn’t mean you don’t exist. Think about it.

        Reply this comment
        • Ted Steele, Associate Prof.
          Ted Steele, Associate Prof. 4 November, 2014, 20:59

          Well said Douglas—- but my litmus test for tea baggy loons still is valid—- 9 out of 10 baggers believe one of the following–

          1. Fake moon landing
          2. Roswell alien thing
          3. 9-11 was an inside job……

          I know John is right there on one of em!

          Reply this comment
  5. LetitCollapse
    LetitCollapse 1 November, 2014, 23:20

    Have you been reading my comments again, John??? 😀

    QE is theft. They have to keep the interest rates low with a federal debt of about $18B and growing with annual deficits of $500B or more! Do the math. If the interest rates went to 6% a full third of the budget would have to be devoted to just paying the interest on the debt. Can you say “unsustainable”? QE is like financial heroin. Take it away and watch the economy go into cold sweats. heh. How the hell can the gov keep interest rates artificially low forever? Interest rates are supposed to fluctuate in a healthy economy. When they are ARTIFICIALLY SUPRESSED – WATCH OUT!!! It would be like loading a young boy up on female hormones so that he could maintain his soprano singing voice. Sooner or later something’s bound to break. ALL THINGS ON PLANET EARTH WERE MEANT TO RUN IN CYCLES. Including economic systems. When the cycle is artificially disrupted or altered by man unintended consequences are bound to happen. More common sense. Right now we’re in the eye of the storm. We are in for a wild, wild ride. Hang on tight! Just a matter of time…… 😉

    Reply this comment
    • Ted Steele, Editor
      Ted Steele, Editor 2 November, 2014, 17:16

      Have you been reading my comments again, John???

      No Collapso— no one reads your stuff past about the first few words—- sorry little buddy!

      Reply this comment
  6. LetitCollapse
    LetitCollapse 1 November, 2014, 23:22

    ^^^^^^^^^^^^^Correction above^^^^^^^^^^^^^^^

    Federal debt is about $18T. NOT billion with a ‘B’. My bad. 🙂

    Reply this comment
  7. Ulysses Uhaul
    Ulysses Uhaul 2 November, 2014, 15:32

    There will be a reckoning when interest rates rise. Codgers get a higher return, bit interest on debt…oh my…..less battleships and Neocon toys!

    This rearrangement of the deck chairs will create lots of whip lashes…..all around.

    Reply this comment
  8. michael
    michael 3 November, 2014, 10:55

    Uhaul,

    Why do you believe interest rates will rise? I doubt that will be in the governments best (debt) interest.

    Reply this comment
  9. LetitCollapse
    LetitCollapse 3 November, 2014, 11:29

    “Why do you believe interest rates will rise? I doubt that will be in the governments best (debt) interest.”

    Mike, do you think the gov can control everything in the world of economics? I’ve got news for ya, Mike. MATH controls economics. Man can manipulate economics only for a short period of time before MATH takes control. Read some world history, man. Heck, go take a US history class. US history usually is taught in 2 segments. You will learn how MATH dictates economics. The gov and the Fed only make it WORSE by the QE and deficit spending strategies. Like pouring gas on a fire. The house of cards is coming down. Only a question of when. 😉

    Reply this comment
  10. Michael
    Michael 3 November, 2014, 14:57

    They have manipulated it much longer than I had thought possible. At some point you have to admit it is frustrating. While I want to see the guilty be punished, it is more likely the innocent will be the ones to pay.

    Reply this comment
  11. Queeg
    Queeg 3 November, 2014, 22:05

    Interest rates rise along with the other factors of production….land, management, labor.

    Currently labor rising ala minimum wage, developable land has risen lots since the economic melt down, management is raking in all time highs.

    When you see full time employment improving the end is near.

    Possibly though,with executive amensty, a government desperation, green card holders will depress, disrupt the rise in labor costs.

    No matter what, we are in for a volatile ride.

    Reply this comment
    • LetitCollapse
      LetitCollapse 4 November, 2014, 10:13

      Your condition is starting to improve, Queeg. We are proud of you. Tedtard and Uhaul are bound to chastise you. Hang in there. The truth is a powerful force and you shall overcome. Welcome aboard!
      But you are a bit askew in your analysis. Interest rates are not a product of wage hikes. It’s the other way around. Higher interest rates cause inflation which push wages higher. The employment data is America is VERY deceiving. The jobless rate is MUCH higher than it appears since many gave up their search for labor and went on the dole. The actual number of able bodied working-aged Americans who have a job are at RECORD lows! Giving amnesty to 9 million or more illegals means that needed jobs are PERMANENTLY stolen from American citizens who are able and willing to work but have to turn to public assistance. PLUS, those 9 million or more illegals AUTOMATICALLY are entitled to climb aboard the ObolaCare system and join Medi-Cal/Medi-Caid, compliments of the US taxpayers!!!
      I remind you. Obola ordered 34 million NEW green cards and worker permits printed up!!! All those illegals are going to need food, shelter and medical care – and you will subsidize all of it!
      More than just a volatile ride, Queeg. It will be like riding the downside of the Escape from Krypton roller coaster at Six Flags and never hitting bottom. So strap yourself in and hang on tight, buddy! And again, welcome aboard! 😉

      Reply this comment
  12. S Moderation Douglas
    S Moderation Douglas 4 November, 2014, 10:32

    “34 million NEW green cards and worker permits printed up!!! ”

    Do you believe everything you read on the World Wide Web, or just what fits your meme?

    Not to worry, those imaginary cards are mostly going to Area 51.

    Spread the word!!

    Reply this comment
  13. LetitCollapse
    LetitCollapse 4 November, 2014, 12:01

    “Do you believe everything you read on the World Wide Web, or just what fits your meme? Not to worry, those imaginary cards are mostly going to Area 51.”

    Once again, you are misinformed. The Federal government has already issued an RFP (that’s a “Request for Proposal” for the misinformed) and is seeking bids from private companies for the production of up to 34 million green cards and work authorization permits, as a result of Obola’s pending executive order for amnesty. This is PUBLIC INFORMATION and easily obtained. If you cannot find it I would be happy to link the actual RFP for your edification. I am here to guide and assist the misinformed! 😀

    Reply this comment
  14. S Moderation Douglas
    S Moderation Douglas 4 November, 2014, 13:50

    LOL!!! This is public MISinformation. Or “paranoia”.

    Better to worry about the USPS stockpiling small arms ammunition ( and the Social Security Administration, and the Department of Agriculture, and the National Oceanic and Atmospheric Administration) Not to mention Homeland Security and FBI, of course.

    WHY DO THEY NEED ALL THAT AMMO????

    They don’t, of course. They’re just taking it out of circulation so YOU CAN’T GET ANY.

    That’s why President Obama is buying up card stock.

    When RFID card stock is outlawed, only outlaws will have RFID card stock.

    PLEASE!!! Try to keep current on your DTP !!!

    (Doomed Talking Points)

    You still cracking me up, LIC.

    Reply this comment
  15. S Moderation Douglas
    S Moderation Douglas 4 November, 2014, 14:47

    What’s ammo got to do with RFID card stock?

    PARANOIA !!! HAH !

    Reply this comment
    • LetitCollapse
      LetitCollapse 4 November, 2014, 15:02

      You hate it when I destroy your bogus claim with a proof source, doncha, SM&D? hah. That’s okay. You’ll get over it…..until next time! In the meantime, go soak your ego in Epsom Salts. 😀

      Reply this comment
      • S Moderation Douglas
        S Moderation Douglas 4 November, 2014, 16:10

        You see 34 million aliens overrunning the country.

        I see a perfectly normal plan to procure card stock for new and replacement Permanent Resident Cards and Employment Authorization Documentation.

        A five year contract at four million cards per year, with the proviso that the supplier have the means to ramp up the supply to as many as nine million in on e year, should it become necessary.

        It requires a very liberal (see what I did there?) sprinkling of Magical Doomer Dust to leap from contract for stationery to:

        !!!……….. 34 million NEW green cards and worker permits printed up!!! All those illegals are going to need food, shelter and medical care – and you will subsidize all of it! ……..!!!

        Doomer paranoia.

        Reply this comment
        • LetitCollapse
          LetitCollapse 4 November, 2014, 17:49

          “I see a perfectly normal plan to procure card stock for new and replacement Permanent Resident Cards and Employment Authorization Documentation.”

          34M is not a normal replacement of card stock, genius. It’s BY FAR an unprecedented order to fill the new demand for cards afer POTUS Obola uses his dictatorial powers to grant millions of lawbreaking criminals amnesty. I know you hate to admit the truth. That’s okay. You keep resisting. I’ll keep correcting you.

          “Doomer paranoia.”

          Your paranoia delusions is documented reality for rest of us. But remain in denial and in willful ignorance. We expect it from you. One character change from a liberal on these boards in one day is about all we can handle. heh. (ie. Queeg) 😀

          Reply this comment
  16. ted Steele, Associate Prof.
    ted Steele, Associate Prof. 4 November, 2014, 18:42

    El Colapso-Constipado

    Reply this comment

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