userAvatar
About
Guide
 
 
 
 
 
economic growth

economic growth

Chris Martenson Says History Will Certainly Repeat Itself--01-27-2012

10mo ago
SOURCE  

Tags

Description

I finally got a chance to sit down with Chris Martenson. I've been reading his ChrisMaternsonReport for some time now. For years he's been saying the US was going to get into some sort of credit crisis, and "Da Boyz" were going to try and print our way out of it. Chris and I agree, we are all witnessing a debt super cycle that's in the process of coming to its conclusion. We are living in the tail end of a 40 year global credit bubble. For the past four decades, the entire world has been growing credit/debt faster than underlying economies. Economic growth is measured by GDP, but GDP is a fraudulent measure. GDP doesn't really measure the wealth creation of an economy; it measures consumption, which in our society has become synonymous with wealth. But wealth is really something totally different than consumption. Chris and I agree, the calculation of GDP should not include the effects of going into debt simply to consume. Consider, Bernie Madoff who contributed 65 billion to GDP, but now all that money has just disappeared. Same with other entities that contribute to GDP like MF global. The government continues to print money mostly for consumption, not investment. They are just kicking the can down the road, and overstating the wealth of the economy. We cannot print our way to prosperity. Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.