Toddsterpatriot
Diamond Member
So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.
https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/
Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.
Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.
Fed Considers New Tool for a Downturn
Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008. Credit card debt of $1 trillion also exceeds the 2008 peak.
Real GDP is 20% higher than it was before the start of the recession.
"Real" GDP is not. GDP counts the money the government creates out of nothing and is not "real". We are still overloaded with that.
GDP counts the money the government creates out of nothing and is not "real".
You'll have to explain where this fits into the GDP calculation.