“The Carrot’s In Reach:” The Myth Of A Self-Sustaining Recovery. By Charles Hugh Smith

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This article, “The Carrot’s In Reach:” The Myth of a Self-Sustaining Recovery, by Charles Hugh Smith at oftwominds.com, is a must read. He explains how Government spending is not investment but is consumption not backed up by production. How the Fed’s “legal”  counterfeiting of trillions of dollars is nothing more than a transfer of your production to the Government and the banks, in other words, it is theft by the two entities who receive the money first, which is the same result as “illegal” counterfeiting.

Here are a few quotes from the article.

“The reality is the mythical self-sustaining recovery is the carrot dangled
in front of a credulous public:
though we’re constantly reassured “we’re almost there”
(the promised land of self-sustaining recovery), the mythical recovery remains
out of reach, no matter how much money is printed or borrowed and blown in fiscal
stimulus.”

This neofeudal distribution of $7 trillion in new Federal debt to taxpayers and the
Fed’s trillions in “free money” to the
parasitic financial sector has carved out a vicious cycle
of lower real household incomes,
higher interest payments and new asset bubbles in stocks, bonds and housing.
These trillions of dollars in freshly issued money
have flowed to financiers who have used it to chase yield in one asset class or another.”

The carrot of self-sustaining recovery will remain out of reach, for the policies
presented as the path to recovery preclude the “virtuous cycle” everyone desires.”

Related article, “The Proper Use Of Credit”, by Charles Hugh Smith at oftwominds.com.

Related article, “Debt = Serfdom”, by Charles Hugh Smith at oftwominds.com.

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