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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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The US government has juiced the economy by 12T USD in deficit spending in 10 years (09-19). While the FED expanded it's balance sheet by 3.7T to 4.5T in newly printed USD...couple that with suppressing interest rates into abnormally low levels for the same decade (the effects of that juicing are in the untold Trillions).
Then Congress enacted Tax Reform which was version 2.0 of Trickle Down, the effect of which juiced corporations with the hopes that they would reinvest the proceeds into new production which would provide jobs etc. Corporations basically seeing that demand for expanded production (this is not to say that they did not reconfigure and or modernize) in the long run was not there demurred from reinvesting. The effects of that Corporate Tax Reform induced sugar high are starting to wear off and the economy is slowing back down to its new post crisis normal.
These policies are what has driven the economic expansion since the Great Crisis. The leadership is still working under the assumption that the pre 08 paradigm of the US economy is still operative not realizing that world had changed the moment GW came on the Telly and said the US was in a "melt down crisis." Just like there was a before the 1929 Wall Street crash paradigm and a post 29 crash paradigm sic reality.
There is nothing normal about the economy since 09, it is a rigged through juicing game where once the juicing stops the economy falters. So long as the economy is being juiced it rumbles and staggers along. The trouble begins when the juicing has a diminishing effect of stimulating the economy and it starts to falter inspite of the juicing. At this moment we are experiencing a slow down as the sugar high of the Tax Reform wears off...it remains to be seen if the economy stabilizes at the old post crash expansion rate or does it continue to falter in spite of all the kings men and horses trying to keep it afloat.
Everything else out there is fking noise..
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"Some Observer"
Last edited by tabs; 08-06-2019 at 02:55 PM..
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