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Friday, October 30, 2009

U.S. economic growth claims are fabricated on more debt spending

(Counterthink) -- While the White House is celebrating a 3.5% reported growth in GDP last quarter -- the first economic growth in a year -- they conveniently forget the simple fact that it's easy to fake economic growth with debt spending. This so-called "growth" was really just the result of the U.S. Treasury flooding the economy with more debt-ridden "stimulus dollars" that will drive the nation even deeper into irreversible debt. That's not genuine economic growth, it's just really bad economic planning. For example, if a family is living on credit card debt to buy groceries, and they're two years behind on credit card payments, and then they suddenly take out a huge cash advance against their credit cards so they can spend even more money, that's not "economic growth." That's just more stupid spending. The U.S. government has done precisely the same thing: It's spending money it doesn't have, then claiming "an end to the recession" because the nearly $1 trillion in stimulus dollars did, indeed, manage to spend a lot of money and create "economic activity." But rather than being good news, it's actually really bad news because it's all borrowed money...Cont'd...LINK

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