The US GDP was up sharply last quarter. Consumer spending which used to make up almost 70% of the economy continues to decline and there was no growth in personal income. New home sales were down sharply in September. What is wrong with that equation? Any measure of the real economy is down but the GDP is up 3.5 %. The missing variable is financial services, trillions of Dollars created out of thin air sloshing back and forth across the economy.
This phony economic activity is pumping up the GDP but produces nothing and in fact when one of these tsunami waves hits your segment of the economy you can be washed away. The price of oil is up again and sucking money out of the real economy to fill the money bin at Goldman Sachs. But hey, it makes the GDP look better (the music is playing, everybody get up and dance now).
The number of unemployed continues to increase, the jobs continue to leave the country and the trade deficit continues to grow. China continues to dump Dollars anywhere in the world that they can to build up their commodity reserves. At some point the people getting those Dollars will want to spend them and nobody will take them. Then dance music will stop.
China has lifted the ban on US pork, one of the few things we have to sell. Of course China is modernizing its agriculture as well as sponsoring projects in South America and Africa to dramatically increase their ability to produce food. They can grow food for China far cheaper than we can. At some point we won’t be able to make the minimum payment on our Bank of China credit card and we’ll be cut off. Anything that you use that says on it "made in China", if you can’t do with out it, you should buy it ahead of time and store with your canned goods. (pssst, just between you and me, that "made in China" stuff is just about everything) www.prairie2.com
This phony economic activity is pumping up the GDP but produces nothing and in fact when one of these tsunami waves hits your segment of the economy you can be washed away. The price of oil is up again and sucking money out of the real economy to fill the money bin at Goldman Sachs. But hey, it makes the GDP look better (the music is playing, everybody get up and dance now).
The number of unemployed continues to increase, the jobs continue to leave the country and the trade deficit continues to grow. China continues to dump Dollars anywhere in the world that they can to build up their commodity reserves. At some point the people getting those Dollars will want to spend them and nobody will take them. Then dance music will stop.
China has lifted the ban on US pork, one of the few things we have to sell. Of course China is modernizing its agriculture as well as sponsoring projects in South America and Africa to dramatically increase their ability to produce food. They can grow food for China far cheaper than we can. At some point we won’t be able to make the minimum payment on our Bank of China credit card and we’ll be cut off. Anything that you use that says on it "made in China", if you can’t do with out it, you should buy it ahead of time and store with your canned goods. (pssst, just between you and me, that "made in China" stuff is just about everything) www.prairie2.com