posted on Jan, 23 2015 @ 12:25 PM
a reply to: conspiracy nut
Deficit 2/3 paid off: So this is a bit of a misrepresentation. We had the largest deficit ever, ever, massive deficit following the crash of 2008.
So our current deficit (the amount we have to borrow each year, not the total borrowed) is 2/3 of what it was at the highest peak ever recorded. The
deficit is still higher than it was pre-2008 .. so you can say "the deficit is much lower) but it's much lower only compared to a historical anomaly
.. it's really quite high.
Dow Jones at record high: Yup! Soaring and soaring .. there's a crap ton of liquid cash out there being flung around by the financial institutions.
This is why the market has recovered so extraordinarily. Corporate profits are also doing extremely well. Now if you get into "why" it's a
little murky. Why is the USA doing better than Europe when technically we are in the same boat? Federal Reserve is the answer. Unlike Europe we
have "Quantitive Easing" which pushes a TON of cash into the markets, as well as the remnants of the Bail Outs. It didn't take long after the fall
for the cash to start stiring profits and liquidity in the markets sending equity markets sky rocketing.
Basically, if you don't see it in plain English: The stock market has nothing to do with the economy, it has everything to do with monetary
Jobs: Lots of jobs being made, but we STILL have not made up for the total lost. If we have not made up for the total lost The Great Recession then
we have a backlog .. we need to make up the jobs lost as well as all the jobs we should have positively gained. The jobs being created would need to
tripple for at least 4 years to get back to where we need to be for positive employment and wage/income growth.
Oil: Is set by monetary policy .. the USD has been rising rapidly against other currencies, especially the Euro .. as well, the USA has dramatically
increased production (surpassing Saudi Arabia). Of course there's also the conspiracy .. the main oil speculators seem to have backed off or
vanished, no longer driving costs higher .. and all of this by magic happens to crash the Russian economy .. hrmmmm .. yeah, draw your own
Is it recovering: Yes, super slow like. Given the cycle of Boom/Bust in a Keynesian Economy we won't fully recover before the next crash, which
should occur sometime in the next 5 years.