This is why I wrote te book “Biflationary Depression”, every chart show the economic freight train going off the rails, through an oil depot, into a crowded stadium and exploding. The only question is when.
We used to think cutting taxes would “starve the beast”, but what has happened is the Federal reserve is now printing up Monopoly money to fill the gap between government revenues and outlays. The Fed now enables deficit spending through debasemant of the dollar.
But here is the real kick in te nuts. We all naively thought that increased money supply would result in immediate hyperinflation which would limit the Fed. But what the printed money has done is to both cause inflation AND deflation, which to an extent nets out. Thus gas and food go up, but wages and home prices go down.
Biflation is possible because GDP=M*V, which has two independent variables. As M goes up you can get inflation (stock market rising) but velocity V gets crushed as everyone loses trust and hordes money. The double whammy of biflation, thus leading to a Biflationary Depression even as Obama touts green shoots.
I’ve really written some pretty cutting edge stuff. http://www.futurnamics.com/biflation.php
Velocity of money went from 20 to 10 in just a few months when the Democrats took over congress January 07. I have brought this up several times in varies places and apparently those with an understanding of the principle of money moving are exceedingly rare or even nonexistent.
NASA is I think, the only government entity with a return on investment. Trying to explain why is a lost cause.