[fhayek]

By my quick calculations, the national debt has increased by 10% per year, compounded since Obama became president. Only now are we even getting a growth rate that is half of the rate of expansion of the debt. And that is just for one quarter If we ever expect to get a handle on the debt we need to grow the GDP faster than we grow the debt. I mean if the deficit this year is $500 billion, and the growth in GDP for the entire year was 5%, it would be around $500 billion. So what we have is a current expansion of GDP financed by future generations.

On top of that, the Fed has pumped trillions of newly minted dollars into the economy with all its quantitative easing. In my opinion, all this new money creates a potential inflation threat if it ever gets into circulation. I think inflation is higher than what the government has been reporting, and that would mute some of these 'wonderful' GDP numbers.

[Son House]

what we have is a current expansion of GDP financed by future generations.

Yep, someone is going to pay back the government's line of credit (debt).

[Son House]

quantitative easing = the measure of which the Fed is propping up the economic picture...

[buckalfa]

As long as the world’s elite and their bankers accept the manna from the Fed, it does not matter, those who do the actual work be damned of course.