Denninger: The Fed Gets Desperate

Read Denninger's latest on the Fed's desperate attempts to avoid accountability.

Key section:

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The Fed has promoted and in fact still is promoting through policy action the lie that credit can expand "forever" at a rate that exceeds GDP. This is mathematically impossible and Bernanke knows it. I do not accept that he is ignorant of this fact as he is clearly an intelligent man and in addition is a credentialed Professor with an advanced degree - therefore, I must conclude that this is not an error but rather an intentional lie. It is, in fact, the big lie upon which all others rest, and yet as I have repeatedly pointed out the mathematical facts are not subject to dispute. To recap, here's the graph:

And to recap on the averages:

GDP growth from the early 1950s onward has been 6.818% annually, debt growth 8.777%, for a spread of 1.959%.

From 1990 onward, GDP grew at 5.396%, debt at 7.907%, for a spread of 2.511%.

From 2000 onward GDP grew at 5.225%, debt at 8.495%, for a spread of 3.270%.

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But hey -- the recession's over!

Whew....now who's winning the World Series?

Let's get back to normal.

Anyone seen my Snuggie?