Is our economy simply a Ponzi Scheme?....Without MASSIVE Lending....our economy evaporates.
The fundemental question facing America, and the world, is whether the current economic SYSTEM is essentially a fraud and current data is illusory based on a temporary stimulous of borrowed money?
Our problem is a structural one....we, and the world, NEEDED trillions of dollars of private sector lending EACH YEAR to drive our $14 trillion GDP. With private sector lending being cut off, spending is evaporating as evidenced by our imploding private economy DESPITE government running a $2 Trillion dollar deficit.
Soon many will realize that America's economy, and much of the world, was simply a product of lending and spending......and now that the savings is running out, our economies, as we knew it, are imploding despite the fact we are told the recession is over.
The BIG issue facing America is how do we pay off $55 trillion of debt against a shrinking private economy......without shutting the nation down.
Just like lowering the unemployment rate by removing workers out of the workforce, we are lowering the vacancy rate by tearing down buildings.
Think of where this could go if we extended this logic to medicare and social security?
The real question is what is the true nature and size of our economy without massive lending and spending?
And what will the additional impact be from the decreased need for employees due to adoption of efficiency driving technologies?