So, it seems that despite all of the ZIRP and all of the QE debasement around the world (which was supposedly to "stimulate" economies), none of it has worked. What a surprise! The proof of the pudding is always in the eating. That is the ultimate of pragmatics. Any fool can see from economic history that permanent debasement by whatever tricks are used never works to "stimulate" any economy but just makes things all much worse. However, the fools in control at present cannot even see that, and many of them are supposed to have degrees in History from good universities...Oh those polices stimulated the economy, there is absolutely no doubt about that. But its just been a temporary boost, requiring another "hit" as soon as the last one wears off. The underlying problem is the macro-economic imbalances between young and old, poor and rich, trade surplus nations vs trade deficit nations. These have led to a surplus of global savings on one side, and a deficit of global consumption on the other. The stimulus polices (such as our housing bubble) have simply papered over these imbalances temporarily, but the global plutocratic elite don't want to take the necessary rebalancing steps since they will be big losers from this, and the older wealthier voters/supporters who form their power bases will be losers too... GDP is simply a measure of spending (or in some cases such as imputed rent - imaginary spending). If a government borrows or prints lots of money and makes it cheaper (by lowering interest rates) for others to also borrow and spend, then inevitably spending goes up. GDP does not differentiate between the spending of earned, and borrowed money. If I lost 50% of my income but borrowed the missing amount and some more to 'Stimulate my economic activity' naturally my spending would go up. Is that sustainable though? No. I still only have half the underlying income I used to have, but now I have a pile of new debt too. So the short answer to your question is that borrowing and spending (temporarily) raised GDP because GDP measures borrowing and spending among other things.
Access Investments-Building Awareness - European Union-ROMANIA
Friday, November 20, 2015
So, it seems that despite all of the ZIRP and all of the QE debasement around the world (which was supposedly to "stimulate" economies), none of it has worked. What a surprise! The proof of the pudding is always in the eating. That is the ultimate of pragmatics. Any fool can see from economic history that permanent debasement by whatever tricks are used never works to "stimulate" any economy but just makes things all much worse. However, the fools in control at present cannot even see that, and many of them are supposed to have degrees in History from good universities...Oh those polices stimulated the economy, there is absolutely no doubt about that. But its just been a temporary boost, requiring another "hit" as soon as the last one wears off. The underlying problem is the macro-economic imbalances between young and old, poor and rich, trade surplus nations vs trade deficit nations. These have led to a surplus of global savings on one side, and a deficit of global consumption on the other. The stimulus polices (such as our housing bubble) have simply papered over these imbalances temporarily, but the global plutocratic elite don't want to take the necessary rebalancing steps since they will be big losers from this, and the older wealthier voters/supporters who form their power bases will be losers too... GDP is simply a measure of spending (or in some cases such as imputed rent - imaginary spending). If a government borrows or prints lots of money and makes it cheaper (by lowering interest rates) for others to also borrow and spend, then inevitably spending goes up. GDP does not differentiate between the spending of earned, and borrowed money. If I lost 50% of my income but borrowed the missing amount and some more to 'Stimulate my economic activity' naturally my spending would go up. Is that sustainable though? No. I still only have half the underlying income I used to have, but now I have a pile of new debt too. So the short answer to your question is that borrowing and spending (temporarily) raised GDP because GDP measures borrowing and spending among other things.
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