Twitter   RSS   Email  

 How the Global Economy is Dependent on Christianity

 Why America May Never Recover From the Recession

 Save Money Homeschooling

The Economy Cannot Recover Because the Fed Damaged The Process of Wealth Creation

By: Steve Johnson

6/4/2012 - 0 Comments

Last week we saw the Q1 GDP get revised from 2.2% to 1.9% and with inflation running above 2% we are already in economic decline.  Q2 GPD is likely to be lower than Q1.

We also saw the May jobs numbers come in at 69,000 jobs, which is far lower than the 150,000 that many economists were hoping for.

What is going on?

We conclude that, contrary to Bernanke, his loose policies didn't save the US economy from anything.  The FED only delayed the massive recession that is still on the horizon.

The reason the economy cannot recover is because the FED has damaged the process of real wealth creation.

Bernanke's loose policies have helped to create another bubble at the expense of wealth creation and thereby setting course for continuous economic decline.

It looks like I was right in 2008 when I wrote my eBook “Why America May Never Recover From the Recession

How Wealth Is Created

Few politicians realize how wealth is created nor do they seem to care.  But they need to start, because their ideas are completely wrong. 

Wealth is created by entrepreneurs coupled with investors that have an opportunity to produce something valuable.

This can only happen when entrepreneurs are allowed to freely innovate without costly regulations that make it impossible for them to get started. 

And money needs to have value, so that investors have a reason to get involved and entrepreneurs have a reason to borrow it from them.

When interest rates are held at near zero by the FED, the government is not allowing this to happen. 

Over time, the longer the FED holds rates down the culture of entrepreneurs and investors are destroyed.  That is what has happen over the last several years. 

Because of the damage that low interest rates have caused to the culture of entrepreneurs and their partnering investors, it is going to take extra high interest rates and massive cuts to regulations to rebuild the damage that has been done before any new jobs are going to be created again.

Copyright © 2022 All rights reserved.

What Has Government Done to Our Money?

Rothbard gives us an exceptionally clear, detailed description of what money is and how it has come to be manipulated by governments and central bankers into almost worthless inflationary fiat paper currency. He then explains how gold became the most respected and trustworthy currency of choice and the prospect of either hyperinflation or the greatest depression the world has ever seen may be arriving in the very near future.

Empire of Debt

Many Americans have resisted the notion that their country is an imperial power. The idea seems to contradict the values of the Republic and its Founding Fathers. But in Empire of Debt, prominent financial analysts Bill Bonner and Addison Wiggin argue passionately that not only is the United States an empire, but it is also one whose end is coming soon.

Crash Proof

Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come.

The Coming Economic Earth Quake

Larry Burkett explains how the financial troubles in America started back in the 1930s. Larry explains the economics of huge goverment and public deficits and how it leads to hyper-inflation. We may be headed for another great depression.