PeakTrader.com

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PeakTrader said...

This recovery is similar to the 1933-37 recovery, except it's worse, because of the additional net debt accumulation (from federal spending).

Chart of the 1930s economy:

http://www.web-books.com/eLibrary/Books/B0/B62/IMG/fwk-rittenmacro-fig17_001.jpg

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The Obama recovery. Chart:

http://stateofworkingamerica.org/files//GDP_gap_2000-111.png

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"Overconsumption of resources" can mean deforestation, desertification, depletion, etc.

For example, China has little arable land:

Arable Land Shortage and the Case for Agriculture and Farmland Investing
February 28, 2012

"Acute shortages of reserve farmland and water resources are now the main restraints for the country to ensure its food security, Zhang Ping, minister of the National Development and Reform Commission, said on Thursday while making a report to the top legislature.

The Chinese government estimates they need to maintain 120 million hectares for crop production until 2020 in order to be self-sufficient in grain production.

Bank of America estimates that China’s arable land has already fallen below the 120 million hectare threshold and could decrease to 117 million hectares by 2015.

According to a report from the US Grains Council, China will import some 1.7 million tons of corn this year, 5.8 million tons next year and as much as 15 million tons in 2014-2015."

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China's economy takes five steps forward and four steps backward, while India's economy, on a slower pace, takes three steps forward and two steps backward.

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China's "growth-at-any-cost" policy didn't raise living standards much for the Chinese masses, over the past few decades.

Of course, many communist bureaucrats, who controlled the economy, benefited tremendously.

Their economic policies were viewed as successful by displaying the gains and downplaying the losses.

Improvements in living standards of China's masses resulted from:

1. Starting from a very low level.
2. Through very hard work.

However, the real gains were small.

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