US Economy Nowhere Near Recovery
Discussing worse-than-expected U.S. non-farm payroll data and how that will shape forex trades today, is Michael Woolfolk, senior currency strategist at Bank of NY Mellon, speaking to Simon Warner, head of macro markets at AMP Capital and CNBC’s Karen Tso.
Duration : 0:5:55
[youtube ooxp3GeHXtQ]
Actual GDP is …
Actual GDP is around US$10 trillion (ref. shadowstats), 70% of which is consumer spending. therefore, the US economy needs to downsize by at least 40% while re-channeling resources into productive capacity to survive. and that does not even take into account legacy debt issues.
the government is enlarging the public sector (non-productive capacity) by 40%. and borrowing even more money at the same time.
change we can believe in. thats all u will have in ur pocket once this is over.
The economy does …
The economy does not need stimulus – that’s the last thing it needs!
What is needed, is massive downsizing of government, a reduction in taxes and services and subsequent reduction in deficits. Trade protections are needed to stem the tide of US de-industrialization and the overgrown trade deficits. A pull back from world policing would likewise save billions, and help reduce deficit outflows.
Unless a concerted reduction in government & private debt takes place, the US is a sinking ship.