Comments on: Tonight, we’ll be drinking to somebody…

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By: Freddie Milward

Freddie Milward — Sun, 26 Jun 2011 07:51:14 +0000

While I can appreciate the points in Post-election toast…what are we drinking? | The 40cozy blog!, I am tired and sick of hearing about the “economic recovery”. The Federal government borrowed and spent $6.1 trillion during the last 4 years to generate a cumulative $700B rise in the nation’s Gross domestic product. This means we’ve borrowed and spent $8.70 for every $1 of nominal “growth” in GDP. In constant $, Gross domestic product is flat, we got no “growth” at all for our $6.1T. In constant dollars, the GDP in 2011 might return to the 2007 level, if the economy continues “growing” at the same rate reached in the first ninety days of 2011. If not, then the GDP will actually be lower than pre-recession levels. There is no economic recovery, the numbers prove this.