The Economic Recovery Is A Fake, Poverty and Government Dependence Continue To Rise And The Cost of Living Is Beyond Astronomical. The American Dream Turned Nightmare?
July 20th, 2013
IMF Economists Say The Economic Recovery Is A Fake
MUCH MORE DRAMATIC IMPLICATIONS FOR THE US
Daniel Amerman writing in ‘Financialsense’ 11 July points out that the latest IMF leak is not only damagingly truthful, or truthfully damaging about Europe’s economic meltdown, but is at least as damaging for the USA. In fact more so.
As the IMF report says, not exactly in these words, since late 2008 a substantial chunk of the US economy has become “artificial”. Another term we could use is “virtualized”. In brief, as the leaked report says, the USA’s private sector basically imploded and has not recovered to this day.
Both IMF and national government statistics have either lied about, or miscalculated the economic impact of “fiscal tightening” or the reduction of government spending – or projected reduction as in the case of the US and most other OECD countries. The merest glance at the absurdly manipulated financial markets of today will show their present all-time highs obviously do not relate to the shrunken, downsized and dysfunctional real economy on which these markets squat. Since 2008, the “damage containment” operated in the US, Europe, Japan and other countries, which propels financial markets to literally uncharted highs, is dependent on running unsustainable government deficits.
None of these governments have the ability to pay down their snowballing debt, under ordinary circumstances. The Catch 22 is they have to pay it back.