Quaker

The Recovery Was Too Expensive

GDP is really a money flow number. It really bears little resemblence to the economic activity going on in the country or to earnings power. This is why GDP went down so little yet personal income tax reciepts to the government went down 35%, the biggest drop in history.

Corporate taxes right now are about 8% of total spending. Personal income taxes are about 35% of spending. The rest is mostly borrowed.

Given baseline budgeting for entitlements, there's little question that Bernanke didn't really do anything other than kick the can down the road. The fact that he considers this a victory shows how shallow and bureaucratic his thinking really is.

The fact is, all we really did was hasten the collapse of the federal government. The key flaw in peoples thinking is the perception that things that change gradually will always change gradually. When this thing stops, it's going to stop like a june bug stops when it hits your windshield.

The Prospect of Deflation and What to Do About It

Food demand is collapsing.