Tag Archives: gdp

GDP – Grossly Deceptive Production

12 May

GDP is a very sketchy measure of economic output/performance. GDP as a measure of economic output is fraught with inaccuracies and composition errors. A better measure is to either discount those errors, which in itself becomes more of a subjective exercise, or more prudently just to look at the revenues and expenses of a nation. GDP today is simply Grossly Deceptive Production.

The GDP growth chart since 2000 shows that Portugal, Spain, Ireland and Greece for the vast majority of the last decade on average experienced robust economic growth. The fact is though, however, despite all of that, they are all bankrupt. So even with all the supposed robust growth and cheerleading, significant increases in GDP have: loaded sovereign balance sheets with toxic debt, created unfunded liabilities, a transfer of private debt to the public and a marked decrease in livelihoods. Professor Bernanke, please can you explain? 

 

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Government spending out of control, Hank Greenberg

9 May

Key takeaways:

Dodd-Frank regulation 

“Dodd-Frank was a new law. It was passed before we even had knowledge of what really happened. The investigations were going on and they passed Dodd-Frank.  Now you got to fund Dodd-Frank. Whenever you do something in a hurry, in the middle of a crisis, you do it wrong.”

Government debt out of control

Interest rates are virtually zero… We have too much debt, you know the issues. We have too much debt, we don’t have a budget agreement in our Congress. Our founding fathers never intended to have a Federal government as large as we currently have. We never had the growth that we did have in past when we had huge Federal government and Federal budget.  We’ve gone from a modest debt in our Federal system to a huge debt in our Federal system. Virtually 25% of our GDP now is spent by the government. That’s wrong.”

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