Are We Reliving The 1930s?

zero hedge ^ | 12/7/14 | tyler durden

[Pelham]

“For sure, the government WAS spending money it didn’t have - roads, bridges, public works - tangible infrastructure and jobs ala the likes of CCC and WPA. Just not injecting it into the banks and brokers’ pockets like QE.”

People would probably be surprised at how little the government was spending then compared to what we now think of as ‘normal’. In the years after WWII the government has typically spent around 18% of the GNP. Obama’s socialism-lite is spending around 24%. Dubya’s last year was also 24%.

In the years before the Depression the government was spending maybe 8% of the GNP. Sometimes 6%. During the Depression gov’t spending ‘spiked’ up to 12%. When we entered WWII spending really did soar, to nearly 45% of GNP, but it fell to below 20% when the war ended.

“The stock market seems oblivious to nearly any commonly felt indicator.”

What’s driving it are extremely low interest rates and the Fed providing plenty of money to the much larger bond market. When they finally turn off that spigot and interest rates begin to climb the party should be over.

[patriot08]

Project Prophecy
predicts imminent $100 trillion U.S. collapse

http://pro.moneymappress.com/MMRBSSH39PPM2/PMMRQB88/?iris=267040&h=true