Americas “Real” Recovery: The man behind the Curtain

Posted: March 27, 2012 in Economics
Tags: , , , , , , ,

All these charts and the heads up on this was stolen from “Theo Spark’s” Blog-Thanks for the info Theo!

The Bernie of Oz and his cronies have been busy! The so called “Recovery” is based upon Job statistics, exports, consumer confidence (translating into purchases which boosts sales, hiring of more workers, etc.)

AND THE BIG ONE…………….G……D………P  Growth

For those of you who dont know what GDP it stands for GROSS DOMESTIC PRODUCT

GDP can be calculated in two ways one is by adding up what everyone…you…me…grandma…jose…everyone earned in a year adding in gross profits from both incorprated and non incorporated firms and taxes (less subsidies)

Or you can add up the expenditures,  exports, total investment in the US and Total Consumption,

Basically its all goods and services and the compensation for them in the country as a whole

But as you can see all the way until late 2008 the FED’s Percent of GDP was around 6%

Then all of a sudden it started rising…and now its damn new 20%

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So what does that mean for you?  well first ask yourself a question, if the GDP measures goods and services, what does the Fed have to do with goods or services

Well money is considered one of those “goods and services”, so creation of money counts in GDP figures.  So put it all together and there was a 12% jump in 4 years that must mean there was a MASSIVE amount of money that wasnt there before, but all of sudden is now in circulation (not physically on 3% of money “made” is actually physical cash you can touch).  So if there wasnt so much money being “printed’” our GDP, our economy would be 12% worse off than it is now.

IN matters of GDP

THAT IS HUGE!  12% may not sound huge to you and I, but to the world and the worlds economies, thats like  your boss saying..hey jack were cutting your salary 60% and we called to have your car towed!

Yes it is that big!

The good news is…

well i dont have any

Just kidding! of course i do!  the sun will still rise tomorrow, the sun will still set tomorrow night, chocolate will still taste good, a glass of fresh water will still quench your thirst and you can take another step, learn another skill, and become that much closer to your goal of self independence and reliance.

This isnt meant to scare you or anyone, this isnt meant to make you overwrought with fear.  This is to inform you as to the issues of the day.  The most important thing is for you to understand and take that step to being free!

And as we said in the Marine Corps, Adapt and Overcome.

All these charts and the heads up on this was stolen from “Theo Spark’s” Blog-Thanks for the info Theo!

THE GREAT NORTHERN PREPPER!  OUT!

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