The big puzzle in economics today: why is the economy growing so slowly? … The growth of the US economy keeps falling short of expectations. On Friday, we learned that the US economy grew at an inflation-adjusted rate of 1 percent in the first half of 2016. That’s the slowest six-month growth rate since 2012, and it continues the slow growth that has characterized the recovery since 2009. So what’s going on?-Vox
Vox has published a longish analysis of reasons why the US economy is growing so slowly.
Of course, we don’t think the economy is growing at all. The US is in a depression.
The article doesn’t characterize the economy that way. Instead, it cites detailed reasons for slow growth. But it never addresses the real reason the US economy is dysfunctional.
The mainstream media continually forfeits trust when it posts articles like this one. Of course, no doubt we shouldn’t expect much from Vox whose founders reportedly include Markos Moulitsas, creator of the CIA-affiliated Daily Kos – see HERE and HERE.
According to Wikipedia, “Vox Media, Inc. is headquartered in Washington, DC and New York, New York with offices in Los Angeles, Chicago, Austin, and San Francisco. The network now features over 300 sites with over 400 paid writers.
Vox would seem to be yet another example of how the CIA extends its reach in the media and influences news coverage as well.
If this article had been written in the 20th century, it might have seemed like a serious financial speculation. But in the 21st century when millions understand the real reasons for US economic failure, the article seems, well … crazy.
The weakness of the recovery has been surprising because conventional economic theory says that the bigger an economic downturn is, the bigger the subsequent boom will be.
And the 2009 recession was the worst in decades, so post-2009 growth should have been massive. Instead, the US economy has turned in its weakest performance in decades. Here are eight of the leading theories.
Here are theories that Vox provides, in order.
-We’re running out of innovations
-There’s too little spending
-Bad corporate governance
-The economy is weighed down with debt
-Excessive regulation is holding back growth
-There’s too much housing regulation in big cities –
-The economy is becoming dominated by big, incumbent companies
-A slow-growing, aging population is hurting growth
The only of these theories that travels near the truth is “There’s too little spending.”
This “theory” mentions the Federal Reserve and its supposed reluctance to print enough money for the economy to operate properly. It also deals with the idea of “economic stagnation” – again, a result of a lack of money, supposedly.
There is no mention however that creating a money monopoly is inevitably ruinous. Only marketplace competition can correctly value money. Any other form of money production inevitably leads to catastrophe.
Of course, there are other reasons why the US is suffering from slow growth besides monetary ones. And why some 100 million Americans are not working in a formally recognized manner. And why 40 million Americans are on food stamps.
The nation is over-regulated and over-licensed. And, yes, the US judicial system has created a legal environment that encourages the creation of big business. We’ve often mentioned that, see HERE.
But the real reason is very obviously monetary.
How can you write an article about economic stagnation without mentioning the horrendous effects of monopoly central banking?
It is a simple article to write. We can do it right now.
You begin by mentioning that creating a monopoly on monetary production is inevitably going to lead to monetary debasement.
Monetary debasement, over time, leads to tremendous surges in all kinds of economic activity. This is referred to as economic growth, though it is no such thing.
Overly low interest rates lead to economic distortions including over-production throughout the economy. The economy then crashes leaving numerous companies bankrupt.
The central bank then prints money to ensure larger companies and banks don’t go out of business. This leads to investor mistrust because no one knows what companies and banks are solvent.
The economy is now effectively frozen.
There will be no recovery for a long, long time. Or until the central bank decides to let banks and businesses collapse.
But the people running these banks and businesses are all cooperating to “prop up the system.”
It is a system of control and corruption. If the system dies, then the current elites lose power. And so the word goes out: We need to save the system so it doesn’t collapse.
But it should collapse.
At the very top, many are empowered by monopoly central banking, yet the central bank monetary monopoly is the root cause of the problem.
The real solution to the US’s current dysfunction and economic stagnation is to stop printing money and let ruined businesses and banks undergo well-deserved implosions.
Put central banks out of business. Let marketplace competition determine the value and volume of money. Let the economy grow without the hype and over-stimulation of too much money printing.
An economy stripped of monopoly money stimulation would grow more slowly and the frippery of “consumer products” would be reduced.
If intellectual property (patents and copyright) were stripped of judicial enforcement, growth would be further stabilized because large companies would lose monopoly advantages.
Couple this with removing “corporate personhood” and the dominant form of business organization would probably turn out to be limited partnerships.
These smaller entities would link up as necessary to create large industrial products. Economic structuring would be a lot more flexible and innovative. Control would be lessened. Real entrepreneurship would be increased.
Conclusion: Avoiding this reality of central bank destructiveness doesn’t make it go away. The demise of central banking can be put off … but not forever. In the meantime, Vox and other mainstream and quasi-mainstream publications forfeit credibility and readers with articles like this one. Perhaps such publications will die along with the destructive banking practices they support.