Through the miracle of simple arithmetic, Charles Hugh Smith is able to bring you this analysis of federal spending and the American GDP that I guarantee you won’t see in any Federal Reserve publication or on any business or national news program:
- The Federal government borrowed and spent $5.1 trillion over the past four years to generate a cumulative $700 billion increase in the nation’s GDP. That means we’ve borrowed and spent $7.28 for every $1 of nominal “growth” in GDP. …
- If you borrowed $7 to get $1 in your pocket, would that strike you as a good deal? How long do you reckon you could borrow $7 to get $1 of “growth” in your finances?
- Let’s say you need $3,000 a month to pay all the household bills. No problem, just go borrow $21,000 and your household economy will “grow” by $3,000. If this isn’t the height of fiscal nonsense, then what is?
Please follow the link above and read the entire article. Warning: do not have a mouthful of coffee when you do so.