Friday, March 26, 2010

Economy in U.S. Expanded at 5.6 Percent Pace in Fourth Quarter

Economy in U.S. Expanded at 5.6 Percent Pace in Fourth Quarter
"The U.S. economy expanded at a 5.6 percent annual rate in the fourth quarter of 2009, and corporate profits climbed, setting the stage for gains in employment that may broaden and preserve the expansion."

Proof you can put a "For Sale" sign on a piece of crap and sell it for a profit to some stupid guy. Where did all this expansion come from I would like to know? Federal Reserve Z1 Report shows a -$133B in credit creation see Q4 Z1 report ( Yes, that is correct, the credit market is going negative and somehow the economy is setting the stage for "gains".

Well, I have seen to this point is the Federal government coming in to build a bridge to span the gap of the cycle or wave, unfortunately for the Federal government and everyone else on this planet you would need unlimited power to do so.

Total Credit Market Debt
2009 Q1 $52.882T
2009 Q2 $52.686T
2009 Q3 $52.549T
2009 Q4 $52.416T

2009 -$466B of credit creation
In comparison, the credit market was expanding at a $4.715T rate in 2007, so in 2 years you went from almost $5T growth a year to negative $1/2T.

Hmm, how exactly do you pay interest with negative money?

The system is collapsing folks. You can hide from it, you can complain about it, you can shout to put people in jail, you can pray to Helicopter Ben, you can have Congress outlaw it, but at the end of the day you are toast by using exponential growth as the basis of your system.

The system is over folks. The Federal government is the only player left at the table. Without huge Federal government deficits the system would be -$1.445T in the red. You can't pay interest on $53T with negative money.

And all the nutbags that think Helicopter Ben is going to save them are in for a rude awakening. If you can fund your own credit than there would be no use for the credit.

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