Zero Hour - Debt Fails To Add To GDP

This is a very interesting and detailed blog from our friend, Mish, today. Clearly, it shows that the economy is only falsely recovering, despite trillions in printing, borrowing and spending. It's worth the full read.

 

ZERO HOUR - Debt fails to add to GDP

Further illustrating the notion that it is taking record stimulus just to keep growth going is the YOY growth rate difference between the Monetary LEI and the Economic LEI, with the disparity between the two growth rates at the highest level in the last half century. 

  

The above charts simply illustrate that our economy is fundamentally weak and instead of allowing our economy to sober up after its debt binge, our monetary and governmental authorities are trying to keep the economy drunk and chugging along, using greater amounts of monetary alcohol than ever before.

I wrote this piece following the November election last year.

Here comes Obama: The "TRILLION DOLLAR MAN"

Never before in America’s history has a newly-inaugurated President been handed a trillion dollars to spend revitalizing an ominous economy. And, unlike the “Six Million Dollar Man’s” bionics wielded by Lee Majors in the popular mid-70’s TV series, this “Trillion Dollar Man’s” power will come from a virtually blank checkbook – an era of “Obamanomics” ushered in by a complicit Congress and hastened by a plethora of “free-traders” drunk with borrowing and spending.

Obama’s stimulus plan will only create temporary public-sector jobs, grow permanent government bureaucracy and continue to fuel the mass exodus of manufacturing and service jobs to foreign shores. America doesn’t need more FDR-like spending for national parks and monuments, or roads and bridges and other temporary, pseudo-real projects – we need real jobs, manufacturing jobs that grow permanent wealth. Our companies leave because we have the second-highest corporate tax rate in the world and through trade agreements, allowing them to take advantage of cheap resources and cheap (even child) labor to drive profits. Since NAFTA and other WTO agreements were initiated over fifteen years ago, America has lost nearly four million jobs and sold nearly 17,000 American companies to foreign interests. Unfortunately, Obama’s campaign pledge to renegotiate these agreements has waned, already altered and likely hoodwinked by the groping, drunken power of Washington bureaucracy, big-business and foreign lobby.

His plan thus far has no incentives for permanent wealth for a nation whose borrowing capacity is exceeded only by its larger appetite for spending. We now borrow trillions instead of billions with no real plan to reverse our dismal course. Our debt of $11 trillion is sky-rocketing and we no longer generate enough tax revenue to cover just the expense of Social Security and Medicare – forget funding for running the government, defense and other mandatory or discretionary spending. These foreign loans also subject us to their stipulations, limiting our action on democracy and freedom ideologies. We are debt-ridden, entirely dependent on loans to feed growing entitlements suffered by our cornerstone loss of wealth in manufacturing and support for entrepreneurship.

We must create new manufacturing protectionisms like our trading partners and set a true course for re-growing the nation’s wealth. We must renegotiate or do away with these trade agreements, implement import tariffs and limit the lobbying power in Washington. We’ve taken liberty for granted and if the course isn’t changed the nation "of the people" may likely exist only in history. We need to get involved in taking back our country - learn what's happening, take real action to preserve and endear it! Leaving things "up to someone else" has left us in the shape we're in now! Join a group (Campaign for Liberty), contact your congressmen and senators - demand these trade agreements be renegotiated or revoked and hold them accountable.

Obama can take the helm of this economically starved, consumer-drunken nation if he follows his campaign promises and bring America back to being the strongest nation in the world! And, his future legacy shouldn’t resemble that of FDR or of Lincoln, but rather as a “restorer” of our wealth and sovereignty. Otherwise, America will awaken from this “trillion-dollar, drunken-spending spree” with an empty bottle and a jobless hangover, powerless and stumbling around looking for handouts from the economically-prosperous, less apt than ever to lend us more hair of the dog that bit us.

Apparently, this right-wing extremist, racist, biggot, redneck (LOL) wasn't far off the mark! And, the real truth still lies invisible to those that still have their heads buried in the sand. Those that would still believe that this liberal, pathological narcissist liar with no real management or business experience is the savior of this country simply just don't have a clue! Oh, but I was wrong about one thing, it wound up being more than a trillion - TRY $1.4 trillion!!!