socialize_me
09-30-2008, 04:43 PM
Anyone see a problem with this?? Considering Americans have a negative savings rate and everyone is in debt, how in the hell can economists come on TV touting GDP numbers??? The current contraction in the GDP growth (which should be negative when you factor in the Dollar depreciation by using real inflation rather than CPI bullshit, and you remove the "stimulus" package) I think shows what America SHOULD BE at. We buy everything on credit, whether it be a house, a car, an education, or even a TV. No one uses physical cash anymore for large purchases (in fact you might have the cops called on you if you walk into a dealership with $20,000 for a new car), so where does this money come from?? All from the bank, and since a lot of this movement is based around the Federal Reserve and an understanding about fractional-reserve banking, a GDP more than 20 times the actually amount of physical currency in circulation should be alarming. Inflation via credit and debt allows for any economic to accelerate artificially beyond natural and appropriate means, and it seems as though we're completely addicted to this. If GDP, for whatever reason, declines, the incumbent party is most likely to be thrown out. Why is a declining GDP a bad thing, especially since most of GDP is based on consumption and debt accumulation for products??
Just look at some money supply charts where you see M0, M1, M2, and M3 all listed. Most of it is made up of money that doesn't exist which was made via credit. When an economist comes on TV and touts some bogus GDP numbers, then they clearly don't understand banking, or at least don't want to acknowledge it. Could you imagine what would happen if everyone withdrew their money and stopped paying mortgages?? The Government wouldn't be able to run the printing press fast enough--hell they'd have to be outputting faster than banks could type in numbers. Not to mention the fact that demand for physical currency from the banks could not be fulfilled, and not even the FDIC could cover this.
Next time someone quotes GDP, punch 'em in the face.
Just look at some money supply charts where you see M0, M1, M2, and M3 all listed. Most of it is made up of money that doesn't exist which was made via credit. When an economist comes on TV and touts some bogus GDP numbers, then they clearly don't understand banking, or at least don't want to acknowledge it. Could you imagine what would happen if everyone withdrew their money and stopped paying mortgages?? The Government wouldn't be able to run the printing press fast enough--hell they'd have to be outputting faster than banks could type in numbers. Not to mention the fact that demand for physical currency from the banks could not be fulfilled, and not even the FDIC could cover this.
Next time someone quotes GDP, punch 'em in the face.