{"id":479225,"date":"2017-04-28T22:20:03","date_gmt":"2017-04-28T22:20:03","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=479225"},"modified":"2017-04-28T22:20:03","modified_gmt":"2017-04-28T22:20:03","slug":"the-long-withdrawing-roar-of-american-capitalism-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=479225","title":{"rendered":"The Long, Withdrawing Roar of American Capitalism"},"content":{"rendered":"
<\/a><\/div>\n

By Brian Maher<\/a><\/span> <\/p>\n

<\/div>\n

This post The Long, Withdrawing Roar of American Capitalism appeared first on Daily Reckoning.<\/p>\n

\u201cThe Fed’s remedies are likely to lead straight to the kind of depression the Fed set out to avoid in the first place.\u201d<\/p>\n

So warned Jim Rickards in his 2011 runaway best-seller, Currency Wars.<\/p>\n

In fact, Jim argued the \u201cnew Depression\u201d had already begun.<\/p>\n

The official commentariat ridiculed Jim at the time.<\/p>\n

After all, the economy had just recovered from a technical recession in 2009.<\/p>\n

And it was in technical expansion by 2011, courtesy of the Fed’s heroic fling at the printing press.<\/p>\n

But Jim maintained mainstream analysts failed to understand the meaning of \u201cdepression.\u201d<\/p>\n

They changed the goalposts in the 1960s.<\/p>\n

Under the new rules, depressions were bugaboos of the past. Monetary \u201cfine-tuning\u201d and other modern refinements carried the day<\/p>\n

But was Jim right all along?<\/p>\n

Is the American economy locked in a depression\u2026 with no end in sight?<\/p>\n

And is the U.S. now like Japan \u2014 down with a chronic wasting disease?<\/p>\n

These are the questions we ponder this delightful spring afternoon\u2026<\/p>\n

John Maynard Keynes defined depression as a \u201cchronic condition of subnormal activity for a considerable period without any marked tendency either toward recovery or toward complete collapse.\u201d<\/p>\n

Not year upon year of negative GDP. Or mass unemployment. Or soup lines or dust bowls\u2026<\/p>\n

But a \u201cchronic condition of subnormal activity for a considerable period without any marked tendency either toward recovery or toward complete collapse.\u201d<\/p>\n

The historic long-term growth trend for U.S. GDP \u2014 1947\u20132017 \u2014 is just over 3%.<\/p>\n

Last year U.S. GDP grew less than 3%\u2026 for the 11th straight year.<\/p>\n

\u201cThat is the meaning of depression exactly as Keynes defined it,\u201d says Jim.<\/p>\n

\u201cIt is not negative growth,\u201d Jim clarifies. \u201cBut it is below-trend growth.\u201d<\/p>\n

It’s also a record case of the blues\u2026<\/p>\n

Each year since 1930, the Bureau of Economic Analysis has calculated the change in inflation-adjusted (real) GDP.<\/p>\n

For 86 years going, these United States have only one 11-year stretch \u2014 2006\u20132016 \u2014 when annual GDP failed to grow 3%.<\/p>\n

The second-longest stretch?<\/p>\n

Four years\u2026 1930\u20131933\u2026<\/p>\n

The locust years of the Great Depression.<\/p>\n<\/p>\n

With the displeasure of repeating ourself\u2026<\/p>\n

The U.S. economy is currently on year 11 of sub-3% growth.<\/p>\n

And gunning hard for number 12\u2026<\/p>\n

First quarter GDP came out today.<\/p>\n

Numbers show the U.S. economy grew just 0.07% in the first quarter \u2014 the slowest rate in three years.<\/p>\n

The remaining three quarters will have to come in Bunyanesque for GDP to crack 3% on the year.<\/p>\n

And so the record 11th year under 3%\u2026 will likely become the 12th record year under 3%.<\/p>\n

How did we come to this pass?<\/p>\n

The Federal Reserve has taken its balance sheet from about $800 billion to $4.5 trillion since 2008.<\/p>\n

The stock market trades at record highs.<\/p>\n

So\u2026 why has the U.S. economy been so down in the mouth these 11 years?<\/p>\n

\u201cGrowth is the key,\u201d argues Jim Rickards.<\/p>\n

And the money quote:<\/p>\n

\u201cThe problem is we can’t do it by printing money.\u201d<\/p>\n

\u201cThe current economic slump is not cyclical,\u201d Jim continues. \u201cIt’s structural. This is a new depression that will last indefinitely until structural changes are made to the economy.\u201d<\/p>\n

Structural changes?<\/p>\n

Overhauling the \u2026read more<\/a> <\/p>\n

Source:: Daily Reckoning feed<\/a><\/p>\n

The post <\/a>The Long, Withdrawing Roar of American Capitalism<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Brian Maher This post The Long, Withdrawing Roar of American Capitalism appeared first on Daily Reckoning. \u201cThe Fed’s remedies are likely to lead straight to the kind of depression the Fed set out to avoid in the first place.\u201d So warned Jim Rickards in his 2011 runaway best-seller, Currency Wars. In fact, Jim argued […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/479225"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=479225"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/479225\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=479225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=479225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=479225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}