You feel poorer because you are poorer

This proves that various “recovery packages” which amount to tens of trillions of issued credit and trillions in federal government spending were all predicated on a lie. Just as the money nominally spent to “save” the household sector went directly to the mortgage banks as housing prices continued to plunge, the money that was supposed to “stimulate” the economy stimulated nothing but Wall Street and the bottom lines of the financial institutions. Notice that this supports what both Karl Denninger and I have been saying for years: there has been ZERO REAL ECONOMIC GROWTH in the USA for more than 30 years.

It’s very simple to see. Just compare the increase in real GDP to the increase in credit. Is the ratio above or below 1.0? If the growth in the amount of credit is greater, then there has been no real economic growth. Since GDP is measured in monetary terms, this means the nominal growth is merely the increase in the number of promises to pay in the future chasing each other around.

That’s why the infrastructure is crumbling. That’s why fewer people are working. That’s why you feel stressed. American median wealth has substantially declined even as the amount of debt has skyrocketed. The Samuelsonians claim this doesn’t matter, because Peter still owes Paul. But both common sense as well as the wealth statistics demonstrate otherwise.

Key quote: “a full 25% of American Households have a net worth of just $3,200; and that 5% (1 out of 20) households has a negative net worth of -$27,416!”

As a youth, I never understood the Biblical concept of a 50-year debt jubilee. It sounded so ignorant and prehistoric. Now, as an adult trained in various schools of economics and having witnessed two major boom-bust peaks in Japan and the United States, I tend to regard it as one more example of the divine inspiration of Scripture.

This chart from Steve Sailer might put the matter more starkly to those who prefer numbers to pictures. Note that the 27 million additional immigrants who entered the USA from 2003 to 2013 have not, contrary to the insistence of neo-classical and Samuelsonian economists, enriched the economy or the native population.