Friday, October 23, 2009

A decade of negative growth

So predicts MaxedOutMama:
Well, I'm done with my preliminary calculations. I am still running a fever, sometimes quite high, so I won't be posting very much for a while yet.

Not that posting would be very appealing even if I felt better, because everything I've got shows that under current government policies (excluding health care reform and cap and trade), we have created the overwhelming probability of a decade that will show negative GDP growth. I'd call that a depression. Depending on when the Fed changes rates (with the earlier hikes giving the most growth), it's a net over a decade of -2% to -9%. Oh, joy.

Mind you, that won't mean that you don't have some positive periods, but our current policies are building massive risks and government losses which must be funded by the taxpayers, on top of higher structural deficits, which must be funded by the taxpayers, and the inevitable result will be no jobs growth, lower net incomes for most households, and much higher taxation for higher income households. All of that would not prevent growth if it were not that both the Fed and the overall government is now wedded to zombie banks which it cannot allow to fail, and in fact is now following a policy of increasing their hidden losses instead of working them off.

It would appear we are screwed. ...

Read it all here.

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