Monday, April 30, 2012
Economy in Crisis
PS: For those who don't get the whole idea that the economy is only growing if you count in massive inflation as growth:
How about this one:
Almost all the meager "growth" the Government was able to manufacture statistically came from a 2.9% increase in consumer spending.
Meanwhile the consumer's disposable income grew at 0.4 % .
2.9% spending VS. 0.4% income.
That means a grotesquely over-leveraged consumer borrowed at a furious pace in order to fuel what little growth we had.
In fact, in an environment with negative real rates promised for eternity they'd be crazy not to do so.
I don't know what you think about that.
Personally, I'm buying more gold.