Denninger: The Fed Gets Desperate
Read Denninger's latest on the Fed's desperate attempts to avoid accountability.
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%.
But hey -- the recession's over!
Whew....now who's winning the World Series?
Let's get back to normal.
Anyone seen my Snuggie?