Since June 30, 2009, Barack Obama, Janet Yellen and scores of others who earn their living lying would have you believe the economy has grown 13.8% in "real" dollar terms when in fact, is has shrunk -33% over the same period.
And here is what they show you to support their ongoing lying. Likely, countless eggheads of academia parrot their dogma in unthinking manner showing the same expressed stupidity to their students.Anyone who has claimed the economy has been growing since March 3, 2009, at the S&P 500 low, either is gullible to persuasion or a shill for those who need persuasion to happen.
If GDP were rising in true terms, why the hold back on interest rates? And why have interest rates at near zero for more than seven years?
If the economy were normal and growing, near ZIRP would be producing a giant bubble, prices for everything would be out of reach for anyone whose income couldn't fund ever-increasing credit.
That most can't see it reveals how well Quantitative Easing has worked. Americans don't see this precisely because QE has papered over reality. QE has worked perfectly, exactly as intended.
Americans think in current dollars. They don't think in buying power terms.
Current dollar prices including wages are up. So Americans can believe they have been living through a recovery and an advance even when individually their lives might have not have improved.
There are 69.8% more dollars in circulation today, August, 2015, than in June, 2008! That is what quantitative easing does. QE has papered over the ongoing losses. QE has papered over the massive credit deflation undergone at banks. QE has papered over the Greatest Depression.
Parsing quantitative easing reveals all. In the phrase, quantitative means increasing, specifically increasing negotiable bank credit in circulation — cash and checkable deposits. Easing means soothing the public by leading them to believe the economy is growing by tricking the public with rises in prices expressed in current dollars.
Heed my latest dictum: When credit falls, the economy must shrink.
Bank credit outstanding had been falling for years in true terms even though personal credit as a percentage of personal income had been rising as Americans struggled to maintain their living standard from peak GDP driven by peak bank credit (inflation) in 2008.
It is only within the last year that bank credit has stabilized.
Yet, in current dollars, which is how most think, loans outstanding is at an all-time high.
If loans outstanding were at an all-time high as loans are in current dollars, then the economy should be at an all-time high. Clearly, in real life, for most Americans, it isn't.
Something must explain that disconnect between what is reported and what is experienced. That explanation is given in True Dollars. In true terms, removing the effects of currency accretion, true loans are down.
At all-time peak GDP, Q4 2007, dollars in circulation tallied to US$764 billion. At last count, 31 August 2015, dollars in circulation tallied to US$1,305.9 billion Said another way, the tally came to US$1.31 trillion! So, growth has been 171% or 1.71 times since Q4 2007.
There is only one method to know in true terms where the economy stands. It's my method, the True Dollars™ method.
Because I use an invariant standard that conforms to scientific knowledge about commercial banking, my measures are accurate and reflect commercial reality. No one else on earth can make this claim, unless he or she were to copy my method.
Priced in True Dollars, GDP has been on the decline for a long time. My True Dollars™ method is the only method done by anyone, anywhere, that produces results that reflect what is going on.
Priced in True Dollars, GDP has been on the decline for a long time. My True Dollars™ method is the only method done by anyone, anywhere, that produces results that reflect what is going on.
Most don't understand the Federal Reserve and its purpose. The Fed Res exists for member banks, especially the biggest ones. Its purpose is to maintain an elastic currency while eliminating the threat of bank runs.
To achieve its purpose, the Fed Res has worked with successive U.S. congresses to rid Americans of money — coined metal by weight and fineness.
When money existed, money kept shackles upon both bankers and congresses.
When money existed, money kept shackles upon both bankers and congresses.
In the days of money, bankers had to acquire money before they could inflate, which means to build an edifice of bank credit. In the days of money, all men knew exactly what inflation meant.
Likewise, in the days of money, any U.S. congress had to sell bonds that paid in what could be redeemed in money. That was hard for Congress. It was quite hard to convince Americans to buy bonds from Congress to fund wars.
All talk associated with the Federal Reserve, claims about "dual mandates" of inflation and unemployment and about "steering the economy" is mere rhetoric continually spoken to sway the mass of Americans from agitating against this scheme concocted by commercial bankers and members of Congress.
All of the activity at the Fed Res is mere window dressing — all of the speeches, all of the white papers — designed to give Americans the belief that Fed Res bankers are in charge and everything done is by design. Sadly, most believe anything said by those in authority (see: YELLEN SPEAKS. STOCKS RISE. YELLEN, HER FOMC AND THEIR DATA DEPENDENCY).
When you look at the True Feds Fund Rate against True GDP (GDP in True Dollars), it all makes sense, especially after Nixon closed the gold window on August 15, 1971.
And here is the True Fed Funds Rate compares with the reported Fed Funds Rate.
Yellen and her cronies at the Fed Res would have the world believe the U.S. economy has grown 13.8% in "real" terms since Q2 2009, growing on an average Fed Funds Rate of 0.124%.
Yellen and friends assure you the economy is growing but for it to grow, they need to keep the FFR near zero.
Yet, during the economy boom between Q2 1993 and Q4 2000, the economy grew 48.5% in True Dollars on an average True Fed Funds Rate of 3.84%!
3.84% True Fed Funds rate is 31% larger than the current Yellen FFR average since 2009 and yielded actual, authentic GDP growth.
And during the second leg of the Greenspan-Bernanke Great Inflation, the biggest credit bubble in the history of mankind, True Dollars GDP grew 18.1% on an average True Fed Funds Rate of 2.27%.
I'm not having any of what Yellen is serving whether she suffered a mini-stroke or not. And you shouldn't as well. Have you not grown weary of the propaganda spewed by Yellen, Bernanke before her, Obama, Krugman and every other pro-government idiot on the planet?
If you haven't yet, you should read these:
- PRICES HAVE BEEN FALLING FOR YEARS! INFLATION? MAJOR DEFLATION HAS BEEN UNDERWAY SINCE 2007. SO WHY DOES LIFE SEEM HARDER?
- DO YOU STILL BELIEVE THAT INFLATION MEANS RISING PRICES RATHER THAN RISING BANK CREDIT?
- "REAL" GDP IS FAKE, BOGUS, CRAP. AMERICANS AND SCHOOL CHILDREN HAVE BEEN HOODWINKED FOR DECADES.
- AWAKEN. YOU'RE LIVING THROUGH THE GREAT GLOBAL DEPRESSION. IT'S HERE, WORLDWIDE. I BET YOU DIDN'T KNOW IT
As well, you should tell all of your friends and loved ones about The True Dollar Journal.
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