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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 691.88-0.3%Jan 30 4:00 PM EST
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To: architect* who wrote (31309)4/26/2012 9:36:14 AM
From: Fiscally Conservative3 Recommendations  Read Replies (3) of 222698
 
Some general thoughts on GDP growth:

At what point should one continue to consider the benefits of 2.5 - 3 % GDP if that growth is manufactured and subsidized by Federal deficit spending?

Any GDP growth in and of itself is good but the costs associated with this growth need to also be considered when the costs far exceed that implied intended growth. Currently US GDP growth is manufactured by Federal deficit spending at 12% of GDP! Intended or not it is the way it is.
Thats right. 12% of our GDP in dollars is borrow to sustain our current way of life.
Congress is not willing to tackle this issue. The pain is just too great.
What a bunch of pathetic hypicrites!
But the Fed is willing! The Fed is willing to continue to provide impetus via QE's to sustain the available liquidity of credit which its greatest benefit seems distined for the Stock Market and not the greater economy as a whole.

This is not good economics folks. This is fiscal chaos in a world dominated by South Pacific Rim Nations willing to continue to provide maufactuers more than willing to step up to the plate answering the call; " Who will 'outsource' our way of life", via cheap labor. We are killing ourselves from within. Its a cancer and its name is greed. You can't have your cake and eat it too. But this is exactly what we are doing.

We can not continued to Financially Engineer our way through sustained economic prosperity and think the outcome will be positive. The Fed chairman continues to believe his grasp of the situation is viable. I think not! What we have created in the last 15 years is far more Debt than GDP growth. The debt/GDP growth rate,the rate at which our debt climbs above our GDP growth, is growing faster than its intended target. It is one thing to borrow money when the return on equity is measurable in the positive and quite another to do so when it is measured in the negative. But this is exactly what we are doing.
This country better get its head out of its fat ass and but quick although I have serious doubts this will happen. I fear the worse. I fear our industrial leaders, who by the way actually do run this country via their lobby efferts, do not give a rats ass about our country but instead about their Global concerns and their vast wealth. I hope I am wrong here on this point but nonetheless remain doubtful.
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