I am just the messenger on this post. Standing on the shoulders of, if not giants, then people who know much more than I do. If you care to see the post for yourself, rather than the abridged version here, then please visit ZeroHedge.
The post is entitled “Our ‘let’s pretend’ Economy.” Let me premise the graphs I am about to post. There is almost a consensus in the mainstream media that the economy is recovering. They’ll say its “fragile” or that its “jobless.” Rest assured, simple commoner, your betters on Wall Street, the Federal Reserve and in government have artfully steered the U.S.S. America out of rough waters and into safe harbour.
Rubbish. After throwing literally trillions of Fed funny money at the economy over the last few years, there has been an infinitesimal uptick in major economic indicators. If, as the Keynesians assert, that an increase in government spending is all that is needed to cure any recession then they got their wish. Whether we can call this a recovery, or a calm before the true storm, I will leave up to you. I will say this though, if massive debt (on a personal, corporate and governmental level) is what created the original crisis, how will even more debt solve it?
Phew. Thank god those trillions of dollars that our future ancestors will still be paying back created so many jobs. And I am sure that once the Fed funny money disappears (please let it disappear) that all of these jobs will still remain…In other words, many of these jobs probably shouldn’t exist given the lack of real productivity in the market due to government interventions. Also, these are government charts mostly, so who knows what level of truth is in them.
Wow, Americans sure are climbing out of debt these days…Also, note all of the shaded areas which are known as “official” recessions. I thought a central bank was supposed to expertly steer clear of those things? It mustn’t be their control of interests rates, money supply etc., that causes so many economic crises. It must be too much freedom in our markets…
Ooh, this is a good one. How does it feel to actually be poorer today than 10 years ago? Of course, these are averages, but the evidence is clear. On average, Americans are poorer today than 10 years ago. With price inflation rearing its ugly head, the average American is set to become even poorer. This isn’t a Republican v. Democrat issue. As far as many people are concerned, both parties are completely devoid of any good ideas or honesty. Remember those “fiscally-conservative-humble-foreign-policy” Republicans that ruled the roost with George Dubya? It turns out they much preferred starting wars, inflating housing bubbles and generally just stealing anything not nailed down. Then, when those “wholesome-fighting-for-the-people” Democrats took the House of Representatives back in 2006, they were going to clean-up Washington, or at least bring these Republican wars to an end. It turns out they like war too. When “hope and change” was elected, he increased the speed of which the US will reach debt-induced oblivion. The current “teleprompter in-chief” (as some have taken to calling him) seems determined to do any and everything it takes to get this economy rolling again, and that’s exactly the problem. The road to hell is paved with good intentions. What ties these two parties together? They both love spending other peoples money. And when your money doesn’t pay all the bills, well then they will just print up what they need. Why do we even bother having elections? Let’s flip a coin and just crown someone emperor for life.
Now, in and of itself, this graph doesn’t tell us much. I hesitate to post it due to the conclusions some may draw from it. Inequality does not necessarily indicate injustice. To put it another way, equality doesn’t (or shouldn’t) mean we all end up with exactly the same everything. Equality, as Renaissance thinkers believed, was equality in opportunity and before the law. We are all born equal, what we do with that equality is up to us. If we slack-off, run up credit card debt, or otherwise act profligately, then we deserve the poverty we may find ourselves in. However, the government’s stated goals are the eradication of “poverty” (by which they mean relative poverty) and the forced redistribution of wealth. They have countless programmes that are supposed to “correct” the “unjust imbalances” found in the market. Many of these programmes began in the 1930s, yet as we see above, the wealth of the nation is concentrated in the hands of the few. Why haven’t the redistribution of wealth policies so favoured by politicians of all stripes not made us all equally wealthy?
We can never know what society would look like today without these programmes, but despite their failings they continue to be piled on. In reality, many private citizens get rich on the back of the taxpayer. Big Wall Street banks come to mind. Even before the bailouts, certain members of the banking elite and corporate America benefitted greatly from increases to the money supply and still do. Making money is not wrong, when done honestly, but central banking makes liars of us all.