'kommonsents' pid='22613' datel Wrote:Isn't all this merely a bunch of illusions?
If GDP is increased by having the government grow and become much more expensive, but including government expenditures including all the social programs, included in the GDP, isn't that a false positive? Japan is now trying the same failed policies of the West, deficit spending and printing money. Sure, they will increase exports due to a cheaper yen, but, like in the US and elsewhere, the price/cost all this money printing and devaluation of the yen will be shouldered by the people through stealth inflation, which is theft, IMHO.
There are no magic bullets here. It's just a transfer of wealth from the people to the elite and a growth of government.
Then we see, apparently the Fed, shorting hundreds of tons of gold driving the price down. I don't think that will be the long-term result though. Historically, the price of gold seems to hold its purchasing power, more or less. No fiat currency can say the same.
As far as illusions go, the US illusion is better than most other developed countries, see the chart above. Apart from the stimuls and Obamacare, there hasn't been any increase in public spending (see attachment), in fact, many economist now argue public spending is a drag on growth