The great deleveraging lie

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investorzzo's picture
investorzzo
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The great deleveraging lie

The Big Lie will eventually lose out to the grim truth. America’s economy is built on a debt based foundation of sand and the tide of reality is relentlessly eating away at that foundation of debt. Collapse is just a matter of time. The charts below from the Federal Reserve paint a grim picture of reality.

http://theburningplatform.com/blog/2010/08/26/the-great-deleveraging-lie/

Total credit market debt peaked at $52.9 trillion in the 1st quarter of 2009. It is currently at $52.1 trillion. The GREAT DE-LEVERAGING of the United States has chopped our total debt by 1.5%. Move along. No more to see here. Time to go to the mall. Can anyone in their right mind look at this chart and think this financial crisis is over?

investorzzo's picture
investorzzo
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Re: The great deleveraging lie

More supporting charts: click on the Budget chart book "view the charts" link

http://www.heritage.org/budgetchartbook/?utm_source=Newsletter&%253butm_...

dshields's picture
dshields
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Re: The great deleveraging lie

i check out heritage on a regular basis - a good place.  yes, the debt crisis is definitely not over.  it is scary.  the spending that went on before the housing/debt/credit collapse will never happen again.  that debt must default or be paid.  either way the result is going to be bad.  if around 70% of the economy is consumers and if they are forced to cut back say 15% to 20% then we are in for permanent high unemployment, recession like macroeconomics, and in general a very tough time for a long time and that's about it.  not so long ago about 50% of the population were in or related to manufacturing.  now that is 10% or less.  we exported our manufacturing base. we are not going to manufacture our way out.  we can not borrow and spend our way out.  no, the "grim truth" is we are going to be down sized whether we like it or not.  blame it on globalism, blame it on politics, blame it on greed or stupidity - it does not make any difference.  it has already started and it will continue for a long time.  all the crap on cnbc and other "business channels" looks to be lies to me.  it is hard to believe that so called experts can not see what has happened and what is going to be the result.  i am still waiting for someone to explain to me why they put all that crap on tv when it is simply not true.  the data is easy to get (like the heritage charts) and yet the media is not reporting it in a manner that seems consistent with its importance.  i just do not understand that.  it seems very odd to me.  there is no such thing as a jobless recovery.

 

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darbikrash
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Re: The great deleveraging lie
dshields wrote:

i check out heritage on a regular basis - a good place.  

Heritage Foundation

The Foundation wields considerable influence in Washington, and enjoyed particular prominence during the Reagan administration. Its initial funding was provided by Joseph Coors, of the Coors beer empire, and Richard Mellon Scaife, heir of the Mellon industrial and banking fortune. The Foundation maintains strong ties with the London Institute of Economic Affairs and the Mont Pelerin Society.

With a long history of receiving large donations from overseas, Heritage continues to rake in a minimum of several hundred thousand dollars from Taiwan and South Korea each year.

In autumn of 1988, the South Korean National Assembly uncovered a document revealing that Korean intelligence gave $2.2 million to the Heritage Foundation on the sly during the early 1980s. Heritage officials "categorically deny" the accusation.

Heritage's latest annual report does acknowledge a $400,000 grant from the Korean conglomerate Samsung. Another donor, the Korea Foundation - which conduits money from the South Korean government - has given Heritage almost $1 million in the past three years.

The Heritage Foundation concerns itself with many issues, from missile defense to Europe to public administration, and about 20 other subject areas. It regularly publishes comprehensive articles, papers, journals, etc., expressing its strong neo-conservative opinions in these subject areas.

While the Foundation has contributed many ideas and positions on contemporary public policy, it is best known for the support generated by its foreign policy analysts in the 1980s and early 1990s to provide military and other support to anti-communist resistance movements in AfghanistanAngolaCambodiaNicaragua and other nations, a policy that came to be known as the Reagan doctrine.

The Foundation ultimately succeeeded in this effort, winning both covert and overt United States support to so-called "wars of liberation" against Soviet-aligned states around the world. Critics argued that this effort led to undue bloodshed in the Third World and damaged American relations with the former Soviet Union. Supporters have argued that the cost imposed on Moscow by such efforts was huge, leading to the beginning of the end for the imperial Soviet empire. Whatever the truth, it was the first prominent example of The Heritage Foundation's ability to spark global debate and alter fundamentally the course of American policy.

The Foundation worked closely with leading anti-communist movements, including the Nicaraguan contras and Jonas Savimbi's Unita movement in Angola to bring military, economic and political pressure on Soviet-aligned regimes. Throughout the late 1980s and early 1990s, the Foundation's support for the Nicaraguan contras and Angola's Savimbi proved extremely influential with the United States government, including the Central Intelligence Agency, the Defense Intelligence Agency, the National Security Council and other governmental agencies. The Heritage Foundation presented its case for armed support for these movements, and United States support soon followed.

Diogenknees's picture
Diogenknees
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Re: The great deleveraging lie
dshields wrote:

Snipped

 it is hard to believe that so called experts can not see what has happened and what is going to be the result.  i am still waiting for someone to explain to me why they put all that crap on tv when it is simply not true.

 

 

The Experts see it, but won't bring it up on TV because they realize it will bring about  "Peak Pitchforks" , something TPTB have tried to avoid since Marie Antoinette made comments about the peasants choices in baked goods.

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tocoadog
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Re: The great deleveraging lie

Not pointing fingers in any direction...but the majority of the people in the US fail to even reason that this could be a conspiracy.  I don't understand it.

The Nazis had the Ministry of Propaganda, the US government has FoxNews, CNN, MSNBC, ect, ect. 

Buy a farm, a gun and a fence and wait for the Feds to show up.  

dshields's picture
dshields
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Joined: Oct 24 2009
Posts: 599
Re: The great deleveraging lie

LOL - i never said that heritage was a beautiful, only that it is a good place to go to see economic and political data.  their "chartbook" link posted by investorzzo has some pretty shocking stuff in it.  it appears to be true.  the data is all out there for people to see but heritage pulled it together and displayed it in tabular and graphical formats that make it a lot easier to see the trends.  we are broke and getting broker.  bush over spending was peanuts compared to the over spending the dems are doing and plan to continue to do if they retain control of both houses of congress in november.  the chartbook....

http://blog.heritage.org/?p=30783

an interesting article...

http://www.heritage.org/research/reports/2010/08/obama-tax-hikes-defende...

 

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