gdp

GDP – A Worthless Measure of America In Decline

Posted on by Helena

China has Hypersonic Missiles.  China is building the world’s most powerful hydropower system.  China has surpassed every country in the world in AI.  China unveils EUV prototype reshaping global chip landscape.  China voices support for Venezuela.   China’ stealth endurance drone completes maiden flight.  China’s humanoid robots take off – beating Musks. 

What China is NOT doing is bombing Venezuela, Iran, Syria, Yemen, Lebanon, or ANY country for that matter.  China’s military budget is roughly $240 billion or 1/5 of the US.  When measuring success as a GDP figure, there are two figures that artificially create a bubble – government spending and inflation (real inflation, not the pandy arse kind our government propagandizes).  The US Government spending has reached over $7 Trillion annually. 

US consumer spending is currently in the range of $19 to $20 Trillion annually.  While on the surface it sounds as though Americans are all wealthy a breakdown reveals reality: Spending is dominated by housing ~  33%, transportation ~ 17%, food ~ 13%, and insurance & healthcare ~ 20%.  All necessities.   Before Taxes. 

By comparison, China consumer spending is shifting:  Food and liquor remain top,  Healthcare & Medicine 2nd, then it shifts to EV’s, fashion, electronics, beauty products, dining out and travel ~ and wealth management.  While US households are struggling with the basics, Chinese consumers are realizing a shifting profile.  This swing is causing behavioral shifts – Americans are angry!   Not in a modified manner, but in a manner where spiritual warfare meets Robert De Niro in a contest of profanity speech.    

The death chants in America are becoming insurmountable.  Every day people applaud death, whether of Palestinians, or unidentified men inside outboard motor boats, or a sitting US President making lude and unbecoming comments about the horrific murder of an actor simply because said actor was loudly demeaning against Trump.  Is that Christian?  To become worse than your enemy? More abrasive?  More vilifying?

In 1901 Simon Kuznets of Russian heritage was born to a Lithuanian Jewish family.  His family emigrated to the US in 1922 whereupon Kuznets began studying at Columbia.  In those days and beyond, Columbia, Rockefeller and Carnegie operated as a cult of sorts.  In 1937, Kuznets presented the measurement concept of GDP for US Congress.  Having learned much of his trade within the National Bureau of Economic Research along with Meyer, Friedman and Anna Schwartz, all of Bolshevik heritage, our monetary system was developed.  The purpose was to inflate America’s Greatness above all others.

The American Empire needed a jolt into the sphere of narcissism usurping that of Great Britain and Royalty.  The Bolsheviks were only too delighted to assist.  Because one day, America would be their homeland.  America must thus represent their ideals, ideologies and of course, – secularism.  The basis for the World Economic Forum.  It is notable that the Bolsheviks were fleeing the ungodly mess the Bolsheviks had reaped upon the destruction of Russia and the rise of Soviet communism.  Much like how the West reaps the rewards of devastating third world countries creating mass emigration due to the absolute actions of ~ The West.

The means of measurement is twofold; Real GDP vs Nominal GDP wherein Real GDP adjusts for price changes using a base year’s prices.  2017 is currently used as the fixed base year for measuring prices which excludes inflation.  Every few years the base year changes – thereby eliminating Real Inflation and deflation of the dollar.  A mind Game.  The purpose?  Given inflation, if the base year remained 1937, the dollar is actually worth perhaps $3-4cents.   GDP is thus an illusion.  Both real and nominal.  Given 1/3 of all spending that measures the GDP comes from Government spending.

 When economics shows the GDP Per Person, and exclaims America is in the top ten with middle eastern countries leading the global pack, it is all for fan-fare.  It does not translate to household income and cost of living.  It does not translate to prosperity of The People.  Instead, it has become a model of government graft vs real inflation.  And our government seemingly is unaware of this rather benign deception because they are all in the BallRoom dressed for The Hunger Games.

Trying to convince Americans who can’t afford food and insurance that they are wealthier than any other country on the globe is simply a Con Game.  And when reality is laid bare, anger implodes.  And the end result is filthy, potty mouth rhetoric wherein we are thus exposed as ‘stupid’.  I feel much better knowing I am stupid… 

Gold and Silver prices are through the proverbial roof – Gold $4256 and silver $66.  They are indicators that all is not well with global economies.  Oddly, the White House economic experts tend to ignore the obvious and are instead told to focus on $18 Trillion in Tariffs that are not tariffs at all but pinky-swear maybe when my ship comes in – promises… finger crossed behind their back.  The EU is broke.  Japan is broke.  Israel is broke.  Their promises are meaningless. 

Middle eastern heavy weights including, Qatar, Saudi Arabia, Bahrain, and UAE will follow the money.  Money backed by hard assets and growth, AKA the BRICS.  Will they actually spend a dime on a fallen economic system?  They aren’t ‘stupid’…

US ECONOMY and DoD Spending; Fraudulent CHAOS

Posted on by Helena

Despite the US Military groaning and lamenting a dwindled inventory of weapons – a massive deal was enacted between the US and Saudi Arabia as Riyad and Iran seemed to be tracking closer as allies.   That would be the literal strategy…  as Saudi Arabia cozies with Iran – the Pentagon sells more weapons to – the Saudis, likely with attached coersion.    Stickier Indeed:    The Department of Defense Inspector General reviewed hundreds of weapon shipments to Ukraine, finding that half lacked proper documentation.  What could that mean?

In addition to the billions already wasted on Ukraine, the new Janet Yellen financial intelligentsia Advisory Committee has approved an EU/US loan to Ukraine for $50 billion.  What could be the collateral?   Yellen insisted the White House is confident that the American taxpayer would not be left responsible for repaying the loan. “We have a high degree of confidence that the money will be there and will remain locked down,” Yellen said.

Yet it is becoming more likely that Putin will have to take control over Ukraine in order to impede a repeat of the western tirade at some future date.  Given Ukraine elections never took place, Zelenskky’s favorability rating is likely in the range of Harris’ at 3%.  Ukrainians in the EU don’t want to return to their country, and some countries are now refusing Ukrainian immigrants –

Forcing them home means conscription and death.

While Lloyd Austin claims DRPK Troops are in Ukraine… he also said that DPRK troops are on the border but haven’t crossed into Ukraine – someone needs to have him pre-read the script before making commentary.  At this point we are in an FDR move.   Lie because the economy is breaking, and war is a distraction.

The WH is still touting America’s Great Tony The Tiger economy claiming an annual increase in GDP of 2.8% – per the Commerce Department.  According to their report:  The increase in real GDP primarily reflected increases in consumer spending, exports, and federal government spending (table 2). Imports, which are a subtraction in the calculation of GDP, increased.

Increases in federal government spending:  Led by the DoD, no financial reporting statements are available, however their FY 2023 audit was beyond abismal!  The FY 2024 budget was roughly $824 billion, $172 billion over the previous year – 27%.  According to their summary, they had available funds of – $1.9 trillion.

  • Contrary to Austin’s comments no quarterly financial statements are available at this time. In fact, it appears the last time a report was filed was FY 2023.
  • According to the FY 2023 audit – the committee found 2,615 corrective issues. The report is quite damning across the board with billions involved.
  • As of FY 2023, the DoD had $3.8 trillion in unverified assets on $4 trillion in liabilities.  Losing $200 billion in the nightmare of unaudited unverified funds.
  • FY 2023, the military awarded $765 billion in contracts for new inventory – Only 61% of contracts are paid for by the DoD…  HHS picks up a portion, Secretary of State picks up a portion.  39% of the DoD expenses are passed thru to other agencies.
  • This is how money disappears from The Pentagon.   More Ponzi mental aberration.

The CIA estimates the inventory of the US military at  – ‘unknown’.  

Increase in Consumer Spending:  This is a value benchmark – therefore when prices increase by 125% this is the fantasy land of increased consumer spending.  Consumer spending has actually contracted which is why retail bankruptcies and scale backs are so prevalent. 

Imports Increased:   This necessity is enforced due to the lack of internal manufacturing and the dependence on cheaper pricing.   Trade deficits continue to be incurred with China, Mexico, Germany,  Vietnam, Japan, South Korea, Ireland, Taiwan, Canada, Italy, India, Malaysia, France, Switzerland, Israel, Saudi Arabia, and the United Kingdom.  Deficits are a direct correlation to the inability to compete due to America’s high cost of production.

This is the economy and the state of America’s financial stability on which our esteemed State Department and DoD intend to go to war with Russia, Iran, the Middle East, North Korea, and anyone else who irks the BOSS.  They are running out of Lies.  

This is the Economy being transferred to a new President.   Debt Clock – $7.2 Trillion spending with $35.84 trillion in debt.  In 1980 the US federal Debt to GDP was 34.7%.  Today it is 122.43%.  

DEBT vs GROWTH – which is better?

Posted on by Helena

While America’s debt now stands at 105% of GDP, Europe is quickly catching up. The UK debt hovers over 96%, France is closing in on 95%, Greece is at 196%, Italy is 140%, and Germany is at 68.7%. But some of the largest and smallest numbers are not always talked about. For example; Japan tops out at 199.4% and Russia lingers at just 11.3%. Part of the problem is in the numbers – as in, who is reporting the numbers? The Japanese government is reporting debt at 199.4%, while Bloomberg and The Economist say it is 240%, but not to worry because public debt is really only 140%. Well that puts them over Italy and no one is saying that Italy has nothing to worry about. But then Italy’s ‘public’ debt is 114%, so while Japan is ‘really only’ – well, Italy is ‘really only’ – less.

The Scandinavian countries routinely come in low, although not the lowest with 20-50% ratios. Even Pakistan and South Africa come in under 40%. Low debt does not equate to a good standard of living, but it does equate to a theory of management. High debt certainly creates the aura of near implosion. So why does the mainstream news keep plugging the failing economy of a country that has the lowest debt to GDP ratio in the world and virtually ignore the country with the highest debt?

Because information molds views and more than anything the view that the media wants to extol is that – Russia is imploding. But it’s not.

Japan has a low inflation rate and low unemployment. But on a comparison basis, consumer prices for food and rent are 25-39% higher in Japan. In 2014, Japans growth rate went into negative territory. While the rate is back in the positive, it is a barely there number at .6%. Italy’s growth rate is currently at .3% whereas the US is lingering at .2%. The countries with the highest growth rates include Senegal at 22% and Kazakhstan at 8%. While the Ukraine’s growth rate had ranked in the positive at 3.3 before the coup, it now lingers in the toilet at -17.6%. In the wisdom of Dr. Phil – ‘How’s that coup workin’ for ya?’

So where do these statistics leave us? Correlations seem to be lacking.

Simply looking at one number obviously fails to tell anything of worth. So what can we learn from Italy and Japan?

While high debt is an indicator, in combination with stagnant to negative growth, a country is doomed. What stimulates growth? What lowers debt?

Growth is stimulated by competitiveness and private sector returns, public sector investments in education, infrastructure and technology are all drivers. So, how do you do that? Well, for one thing taxing out the public and private sectors is an obvious faux pas. What can hamper these natural stimulations? According to a Nobel Laureate Economist, quality government is the key. Governments that abuse their power, make decisions for the elite, and favor the special interest groups, will create the implosion no matter where the debt stands.

Within the government initiative there is the obvious – demand. Demand is high when wages are more indicative of a thriving economy. Low wages = low consumer spending = low consumer confidence = low overall growth rate.

How do we increase wages?

The Obama solution is – redistribution of income through taxation. It’s an economic absurdity to even consider this a solution. Taxing a corporation reduces their bottom line more which will effectively redistribute nothing to anyone but the government. Corporations are motivated by profit. They want a greater return if they are going to pay more wages. They want increased productivity to justify the wage increase. Right or wrong – that’s how their mind works. Resume writers want their clients to show how they created greater wealth for their previous employer because that’s what sells an employee’s worth.

Stagnant wages make for low morale and stagnant growth. Corporations don’t have the American morale any longer, they see cheap India labor as their driver. If the government spent more time and money ‘incentivizing’ corporations to pay better wages and keep them in the US, entitlement programs could begin to fall away thereby redirecting the entitlements to incentives. It might be a breakeven for the government, but that would be their ‘job’, and moral, confidence and earning power would be the end result for the citizens the government represents.