Thursday, August 29, 2013
I've been down so long it looks like up to me
With the rejiggering of inflation metrics so that everything that is soaring in price (rents, energy, education, health care, food) is removed from the inflation equation, the government has been able to ramp up Nominal GDP growth all the way to 2 percent.
By discounting "discouraged workers" and removing them from the workforce the government has been able to drop Unemployment all the way down to 7 percent.
By relaxing accounting standards whereby the Banks can mark junk debt derivatives to the value of fictional models and Central Banks take defaulted junk onto their own balance sheets; and Corporations can remove all losses off the balance sheet onto Special Purpose Vehicles or exclude them as "One Time Items," balance sheets have been "repaired," and "profits" continue to soar.
By relaxing those same accounting standards for the government, whereby the defaulted junk on the balance sheet of the Central Banks is valued according to fictional models and wars are fought off the balance sheet, the Increase in the Debt has been "contained" and the debt is clearly no longer an issue.
Now the bar for a dynamic recovery has been set at 2 percent growth, 7 percent unemployment, a national debt of 17 Trillion dollars, and a total debt market of 350% of GDP - and fictional profits.
The bar is clearly somewhere deep below the surface of the earth. So low that it recalls the old blues song "I've been down so long it looks like up to me."
And by these same corporations owning the main stream media like Fox, CNBC, the Wall Street Journal, Bloomberg, etc etc, this farcical story line has been hammered home over and over until the point where everyone accepts the Recovery as a fact.
And if everyone believes it that's half the battle, right? Perception is reality, right?
Sure. But perception is a tricky game. It can turn on a dime. Even in spite of the massive power of the Corporate/Government Media.
At least, it always has in the past. Is this time somehow different?