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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.12-0.5%Oct 31 5:00 PM EST

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To: bart13 who wrote (100830)5/29/2013 10:38:07 AM
From: carranza23 Recommendations  Read Replies (1) of 217516
 
From Jesse via RM (hat tip) a Fed statistic which should give everyone pause.....every $ spent on stimulus has resulted in less than a dollar's worth of economic activity....multiply x a few trillion:
2013
Amount of Dollar GDP Added For Each Additional Dollar of US Federal Debt

The line represents each dollar of GDP added for each incremental dollar of Federal Debt.

I would suggest that someone look into why the velocity of debt is now running into the law of diminishing returns. The big slide started with Reagonomics and the 'supply side' theory based on the second chart.

It might have something to do with a corrupt financial system, the myth of efficient markets and globalization, tax cuts for the wealthy and unfunded wars, and the largely stagnating median wage.

However one wishes to slice it, it might be difficult to make up in volume what is taken away by a crippled financial system that keeps sweeping the productivity gains and national wealth up to the one percent where it is used for largely non-productive monopolization of resources, political corruption, unfunded endless wars, and fraud.





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