PeakTrader.com

[administrator]

PeakTrader:

The U.S. economy remains on life-support, and even with the tax hikes and spending cuts enacted this year, the federal budget deficit for 2013 (through Sep 30th 2013) is projected to be $901 billion.

Yearly federal budget deficits

•FY 2012 – $1.087 trillion.
•FY 2011 – $1.299 trillion.
•FY 2010 – $1.294 trillion.
•FY 2009 – $1.413 trillion.
•FY 2008 – $459 billion.
•FY 2007 – $161 billion.

(Almost all of TARP was paid back, with interest, after 2008).

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The recoverless recovery continues:

IMF inches back U.S., global growth projections
04/16/13

“The American economy is projected to increase at a 1.9 percent clip in 2013…The projection for the world economy was scaled back to 3.3 percent.”

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Obviously, there has been collective media bias. The Bush recovery of 2001-03 was after a spectacular structural bull market, from 1982-00, at the height of the Information Revolution.

Yet, the recession was so shallow, annual per capita real income didn’t fall, and the jobless/recoverless recovery the media reported was after a jobs boom. Relatively few jobs were lost in the recession and the creative-destruction process that created massive efficiencies in the 2000s was ignored.

Although, GDP growth and job creation were lower in the economic boom of 2002-07 than 1995-00, living standards improved at a steeper rate and the economy was much more efficient (producing more output with fewer inputs, and capturing more output in the global economy). The improvement of living standards would’ve been sustainable if lending standards gradually rose with the monetary policy tightening cycle.

Basically, the collective media ignored or downplayed the shallow recession of 2001 and the economic boom of 2002-07 in the Bush years, and then ignored or downplayed the deep depression, and the ineffective and counterproductive policies over the past few years under Obama.

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