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from 1970 on, the US population went from roughly 205 million to roughly 304 million during that time, a 50% increase.
Outstanding consumer credit went from $128 billion to $2,525 billion, or a 1,973% increase - and this is only consumer credit, ignoring mortgages, financial firm credit, business credit, commercial real estate and of course government debt!
Why are we not seeing "robust" economic growth when we exit recessions? Why is there no real hiring going on? Why can we not have a robust economic recovery? Why are we are replacing good jobs with "McJobs" that pay half as much - or less? And more importantly, where did all the "so-called prosperity" really come from, especially from 1994 on?
In each and every instance of recession from 1970 onward we have "pulled forward" more and more demand and created fake "prosperity" through the creation of ever more debt that we have goaded consumers to take on. By doing so we have crippled the ability of the economy to grow, redirecting as much money as possible to a handful of people and firms (commonly known as "banks" and other "financial companies") instead of directing that effort and money into productive enterprises such as building cars, television sets and similar items. (denninger)
Because people seem to think "services" are worth something even if it doesn't produce anything... hence CEOs make so much money... they do nothing while earning the money for simply having others work for them... hah! And who gets the praise that the company made X amount of money? The CEO... who I doubt even knows HOW the money was made if they weren't "briefed" by company reports... the number one CEO in our country? The President... cause he is the chief enabler for all the rest of the CEOs to continue their crooked ways...
i said that the IMF organization is a group of global banking weasels and i stand by that statement. i guess the attempt to subvert the united states dollar is no longer a covert operation.
There is nothing new about dead end non-career based employment, in fact the term "mcjobs" is at least 23 years old: McJob - Wiktionary
The prosperity in this country come from the MANY people that truly do provide value in the form of goods and services that create wealth. Much of this wealth creation is no longer on the factory floor but in the form of knowledge about spreading information more quickly or with greater cost savings. Much of this knowledge is used by firms that deal primarily in financial assets, and the management of financial assets is, for obvious reasons, a very high order activity. There are millions of people in the US and abroad that depend on the success of their financial holding for their comfortable retirement.
There are limits to how much "stuff" a person, household or entire economy can own, but there is no limit to the knowledge based economy.
the prosperity should have stayed on the factory floor so you could not have greedy global corporatists screwing over the united states, and there are many people who are about to get screwed over by these financial so-called wizards (think george soros, or Gyorgy Schwartz, which is his real name)
the last thing that a united states citizen would want is a devalued united states dollar being replaced by a foreign currency "basket"......
from 1970 on, the US population went from roughly 205 million to roughly 304 million during that time, a 50% increase.
Outstanding consumer credit went from $128 billion to $2,525 billion, or a 1,973% increase - and this is only consumer credit, ignoring mortgages, financial firm credit, business credit, commercial real estate and of course government debt!
Why are we not seeing "robust" economic growth when we exit recessions? Why is there no real hiring going on? Why can we not have a robust economic recovery? Why are we are replacing good jobs with "McJobs" that pay half as much - or less? And more importantly, where did all the "so-called prosperity" really come from, especially from 1994 on?
In each and every instance of recession from 1970 onward we have "pulled forward" more and more demand and created fake "prosperity" through the creation of ever more debt that we have goaded consumers to take on. By doing so we have crippled the ability of the economy to grow, redirecting as much money as possible to a handful of people and firms (commonly known as "banks" and other "financial companies") instead of directing that effort and money into productive enterprises such as building cars, television sets and similar items. (denninger)
I think that sums it up in a nutshell.
I started a thread about the 30's, 40's economy vs now (using the 3 stooges world as an example). Silly, but I think there's some truth in it.
I think its been a sham economy since the 70's.
Before that it was a real economy, based on real labor, real goods and services. Silver coins. Not the artificial FED money that we have now. That was a relatively stable system. People traded up from the Model T to a 1940's car, to a 57 Chevy. Or from no tv to 1 or 2. But nobody really went over the edge in that system, not like today.
Everything after that became an illusion.
-Dummied down, watered down schools. A highschool diploma use to be a ticket to a decent living, now it's nothing.
-The college racket exploded. Whereas you use to be able to build a downpayment for a home with a bachelors, now you're paying back inflated student loans.
-Manufacturing and real goods economy to paper shuffling and finance.
-Outsourcing, etc.
And sold lots of expensive things to people along the way.
By the way, these numbers are obviously misleading (by hey....why look into things when you have a point to prove) as they are not adjusted. Consumer credit as a percentage of GDP is not dramatically different today than it was in the 1970's (or 1950....ahem...John23)
GDP Consumer credit.........% of
1950.......$237.............$20
1970.......$1,000..........$127................... ...12%
2009.......$14,000.........$2,500................. ..17%
One other piece of information (listen up John23), here are the growth rates for consumer credit every 10 years starting in 1943 (this is when the FED started to collect the data):
The 40's saw the biggest increase in consumer credit, the large increase is likely due to the fact that people went on a big (debt driven) buying spree after the war. Other than this consumer credit has been growing at a fairly consistent pace.
Consumer credit is likely inflated (and it has started to decline), but not to the degree that the misleading numbers in the OP indicate. The post war historical average is around 15% of GDP, we are not dramatically over that today.
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