Why The Public Is Suffering While Wall Street Booms

Mar. 12, 2013 6:18 PM ET28 Comments
Eric Zuesse profile picture
Eric Zuesse

Part One: The Crime that Has Been Hidden

The crime hasn't been entirely hidden, because clear signs of it show up in America's monetary statistics:

Bud Conrad, who outperformed all but 27 other economists in the world and accurately predicted as early as 2006 the coming housing-bubble collapse, by announcing "The housing boom is over, but the story of the housing boom isn't," now is out with a terrific article published March 10th at Seeking Alpha, concerning "The Coming Crash in the Bond Market," in which Conrad documents a number of (as will be made clear here) important economic facts (and you can see there the charts displaying them):

Total debt in the U.S. reached around 380% of U.S. GDP in 2008, which was the highest such ratio in U.S. history, exceeding the previous top, which was 300%, reached at the very bottom of the Great Depression in 1933. (It's now back down to 350% - still above the 1933 peak.)

The federal government's debt continues to rise, but the debts of all other economic sectors have stopped rising, and have stayed virtually flat since 2008. (Incidentally, the reason why the federal government's debt is still rising is that the 2008 crash decimated the tax-revenues coming into the U.S. Treasury; the reason is not that federal spending soared - federal spending actually stopped soaring when Barack Obama came into the White House; the Republican accusation to the contrary was a blatant lie, nothing more.)

The Fed is printing money like crazy "to distort the [interest] rate to zero by extending its monthly purchases of $40 billion of mortgage-backed securities (MBSs) and $45 billion of Treasuries out to 2016," after which time (and that will be the end of Obama's second term), all hell might break loose, just as had happened at the end of GWB's Presidency - but, by then, it'll be the following President's

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Eric Zuesse profile picture
Investigative historian Eric Zuesse is the author, most recently, of the book, They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010. Republicans Harm America's Economy - It's Now a Proven Fact. www.amazon.com/Theyre-Not-Even-Close-Democratic/dp/1880026090/ref=sr_1_9?ie=UTF8&qid=1339027537&sr=8-9

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