Is the post-recession “recovery” actually a depression obscured by the false prosperity of debt?
A scandalous question… with perhaps a scandalous answer.
Today, we penetrate the “squid ink of official truth”… scatter the statistical fog… and let in an illuminating shaft of light.
Between 2010 and 2016, nominal U.S. GDP expanded an average 2.1% per year.
Some years it expanded more than others. But each year, nominal GDP expanded — officially.
Meantime, the national debt has nearly doubled since 2010. It now floats above $20 trillion.
And the Federal Reserve has nearly quadrupled its balance sheet to nearly $4.5 trillion.
So… how much of the post-recession growth is real… and how much is a debt-spun mirage, a shadow, a phantom?
What would GDP look like absent the artificial stimulus?
Financial advisory firm Baker & Co. Inc. recently hatched a study to answer these questions.
Their findings are illuminating…