From CHARLES HUGH SMITH
For the past 67 years, Americans have been conditioned to expect expansion and more of everything: more income, more stuff, more opportunity, more benefits, more medical care, more government entitlements, and so on.
U.S. politicians have learned that Soaring Rhetoric (TM) about “morning in America,” “the New Frontier,” “hope” and other ritualistic appeals to permanent expansion win elections, while accurate descriptions of reality lose elections.
The voting public’s demand for “permanent good news” promising permanent expansion has spawned a feedback loop of officially sanctioned manipulated statistics and media spin (a.k.a. propaganda) that expands with every administration, even as the real economy visibly weakens. Though the Obama Administration has perfected the techniques of presenting “permanent good news,” the divergence of the real economy and the official “story” that “we’ve returned to permanent expansion” is widening.
The real story is the “expansion” has cost the taxpayers trillions of dollars in new debt and trillions of dollars of backstops, shadow purchases and money-printing by the Federal Reserve. Roughly speaking, $6 trillion in additional Federal borrowing has been blown to simply keep the Status Quo from imploding, and around $13 trillion in guarantees, backstops, asset purchases, and losses made good have been issued to keep the Status Quo’s financial sector afloat and in charge.
By any credible, unmanipulated measure, for example, the number of people with fulltime employment