Thursday, December 18, 2008

Some other charts and graphs.

These are from the shadow government statistics webpage, as is the graph I used in the last post.

This is the real GDP vs the "official" GDP which is of course calculated in such a way as to obfuscate how far our economy has fallen since "globalization" was being fully implemented in the mid to late 80s. As living wage manufacturing jobs left these shores, a few spurts of activity in other economic areas attempted to support the overall economy, but wages never recovered (and never will) and so as people's discretionary income evaporated, so did those other sectors of economic activity.

This next chart is interesting because it gives you an indication of how much of the money available to us was in fact not real money at all but credit and debt that banks and finance companies made up out of the thin blue air.

As the credit crunch causes loans to be so much harder to get, the "money" supply is shrinking precipitously. Of course, the banks never actually had this money to lend in the first place - it's all "virtual reality." But the fact that the imaginary money is no longer being "made" and the imaginary money out there is fact being written off an "unrecoverable" means the "money" supply is much less than it was.

Of course, it's hardly moral and ethical for banks to take away your home and other assets because you can't now repay funds they never had to loan you to begin with, but that's another issue entirely.

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