The following table from the Mises Institute reflects the decline of the economic health
of the U.S. during the Greenspan years between 2000 and 2007. It is an astounding
record of fiscal and monetary prolificacy. Is this history too large to be papered over by
monetary and fiscal policy?
US Economic Trends, 2000–2007: Christopher Westley, Mises Institute
2000 2007 Change
(%)
US Population 281.4 million 301.6 million +7.18
Tax Revenues $2.025 trillion $2.54 trillion +25.4
National Debt $5.67 trillion $9.01 trillion +58.9
Budget Deficit/Surplus $236.2 billion -244.2 billion -196.7
Unfunded Liabilities (Social Security, Medicare,
Medicaid)
$33 trillion $53 trillion +60.6
MZM Money Supply on Dec. 31 $4.697 trillion $8.105 trillion +72.6
Monthly Inflation in December 3.38% 4.08% +20.7
Military Spending $294.5 billion $439.3 billion +49.2
Department of Agriculture budget $75.1 billion $88.7 billion +18.1
Farms 2.167 million 2.09 million* -3.5
Dollar-Euro Exchange Rate on Dec. 31 1.062 .6794 -36.0
Gold Price on Dec. 31 $272.15 $833.20 +206.15
Citigroup Stock on Dec. 31 $51.06 $29.44 -73.4
Archer-Daniels-Midland Stock on Dec. 31 $15.00 $46.43 +209.5
Gasoline Price (US Regular) on Dec. 31 $1.38 $3.02 +118.8
* Most recent figure for 2006
Isn’t it just possible that we need to go through a period where we wash out the credit
cycle that has piled up largely on the Greenspan / Bush watch? Gold is certainly telling
that story. It reached an all-time nominal high point this AM.