The New Normal?…” No one will get out alive. Welcome to the new normal.”
by Jim Quinn
Our government and financial “leaders” tell us that things are back to normal and we are well on our way to economic recovery. They report rising GDP, declining unemployment, and record corporate profits. The legacy media propaganda machines, controlled by corporations dependent upon the government and Wall Street to funnel them advertising dollars in return for reporting falsehoods and mistruths, have been informing the masses that all is well. Just go back to staring at your iGadgets and tweeting your every thought to your followers, because the best and brightest in D.C. and Wall Street have it all figured out. The new normal is here to stay.
I guess my interpretation of normal deviates slightly from our glorious leaders’ definition. During the long-term bond bull market, from 1982 until 2007 the 10 Year Treasury steadily declined from 16% to 5%. This was normal because inflation declined at the same rate. Inflation declined from 13% to 3% over this same time frame according to the BLS. In reality, measuring inflation as it was measured in the 80?s and early 90?s would have yielded an inflation rate closer to 6% in 2007. During the decade prior to 2007, which consisted of supposedly strong economic growth, the 10 Year Treasury ranged between 4% and 7%. Even during the 2001 recession, it never dropped below 3.5%.