The Government IS The Economy

Today, the U.S. Federal Government is literally borrowing every dime, at interest, of supposed growth to U.S. gross domestic product (GDP).

Take a look at this chart:

Market-Ticker

The green line represents U.S. GDP after accounting for government borrowing to 'stimulate' the economy. Remove government borrowing today (blue line), and we immediately fall into a depression as represented by the red line.

What they've been hoping is that private growth would take over and replace government spending. That hasn't happened because the people that got us into this mess have all been bailed out and are still doing the same things that put us here. Until you see people going to jail; the bailouts stopped; and a gigantic contraction in the housing sector, nothing is going to improve.

Wonder how long this can continue? Longer than most people's attention spans, but not years.