Posted on 07/08/2014 11:56:14 AM PDT by GilGil
The first quarter contraction, especially our corrected number, implies a second quarter negative real GDP. In other words, the years of Quantitative Easing (money printing) by the Federal Reserve has not resulted in economic recovery from the 2008 downturn and has not prevented further contraction.
(Excerpt) Read more at paulcraigroberts.org ...
I agree on all points.
When PCR limits himself to commenting on the US economic scene, he deserves to be listened to.
When PCR limits himself to commenting on the US economic scene, he deserves to be listened to.
“If Washington is this unaware of its budget constraints and its financial predicament, it cannot be long before Americans experience economic catastrophe”.
They hate us.
All right on plan of the radical left. It has been this way for over six years. We warned and the fools did not listen, and now we face this.
“Quantitive Easing” was never intended to “stimulate” the economy. It was necessary to paper over the giant trillion dollar annual deficits racked up by the 0bama regime. Deficits so large there wasn’t enough capital in the world’s markets to absorb it by traditional means.
“..“Quantitive Easing” was never intended to “stimulate” the economy.”
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Yes, and all it is doing is holding Wall Street together. And the world knows it. With the exception of the American low-information voter...
That’s been the opinion of many from the start. He’s going to become more and more obstinate and destructive.
You don’t think it’s going to happen sooner?
Well with that knowledge, we can both become the next John Paulson!
Well it worked.
The 40% fake money routed to the Entitlement Army purchased a re-election for Caliph Baraq.
Things on the ground are just terrible. I just got back from grocery shopping at Walmart . Couldn’t believe the price of all meats. 8 bucks a pound for ground chuck!
Substitute it for cat food, ergo no inflation.
Or corn on the cob which is cheap this year. Cheaper than I remember it being for years.
Well I started eating vegan to beat prostate cancer about 2 years ago. Got much better and my food bill went down 60%. Blessing in disguise in more ways than one.
QE was also to prop up hard assets, i.e. real estate. Combine that with loan modification programs like HAMP, and you have government controlling the housing market. It worked so well, the Feds took over student loans.
We all know how that will end.
If Mark Twain were blogging today, he'd say there are 3 kinds of lies: lies, damn lies, and HAMP modifications.
I think the Fed may actually be hoping for another “correction” to burst the hard asset bubble they’ve inflated. In that way, they can “destroy” all the money they “created,” and it never goes into circulation. Of course, this is just another “rob Peter to pay Paul” fiscal strategy, and is obviously fraught with economic peril. But on the other hand, given the senseless fiscal strategy of the current regime, I don’t know what other options the Fed has.
Yes, and I certainly agree. But as you note, it is “leaking” and we do have significant increases over the past two years in the cost of living, goods, and services.
We still have a “fake” economy. This administration is doing everything it can to hurt/squash our economy and so far, they continue to get away with it. The electorate carries a huge responsibility for Obama’s second term and the still untold damage to our nation. Until the private sector again becomes the major source of economic growth and wealth creation (and the priority of a pro-American administration) will we again have a healthy, self-supporting economy. Obvious stuff, but worth repeating.
The electorate got the regime it wanted. Otherwise, the revolution would have already begun.
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