US Action News

Government has evolved into a Ponzi scheme dependent on two strategies. The first is spending ever more of other people’s money on themselves and toward their re-elections. The second is pretending what they do has no cost — to the productive, to the economy, etc.

Central banks and governments try to induce consumers to spend to help the economy while they take money away from savers who would like to be able to profitably invest. Rather than inducing them to consume more, they are forcing them to spend less in order to make their savings last through their final years!

How bad does it have to get before we acknowledge that what we are doing economically is not working.

The policies that are being employed to create the appearance of economic and market stability are not effectively addressing the underlying symptoms of economic malaise; in fact, they are exacerbating them.

The fed continues the same policy initiatives even after it fails to get the desired results they were seeking at the outset of the programs.

The government is in what is known as a debt death spiral. They must borrow money to repay prior debts. It is as if they are using their Visa Card to make an American Express payment. The rate of new debt additions dwarf any rate of growth the economy can possibly achieve. The end is certain, only its timing is unknown.

[W]e’re doing the same thing that led to the 2008 blowup — we’ve learned exactly nothing. In real terms our GDP is in fact contracting by about $500 billion a quarter, after adjusting for debt expansion — that’s $2 trillion a year, more or less. – The Market Ticker

Rick Santelli rants against recent Fed statements and stock market dependence on the Fed’s buying of government debt known as QE.

“Between 2007 and 2010, median consumer net worth declined by 39%, with, unfortunately, low income households facing the greatest percentage decline.2 This fragment of economic history is a powerful reminder that government intervention can have unintended consequences, often of unforeseen magnitude.”

It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.