Reply #16: You Don't Have Recovery

[Possumpoint]

For the very same reason that we didn't have a depression. Those in charge of the financial well being of the United States and to a certain extent, parts of Europe, borrowed printed and increased the money supply to patch the holes in the balloon. Heaven forbid that a major investment bank lose money with its investments. Debt, the hidden thief, has been grown to cover the sins of previous debt.

As painful as corrections are, there is a purpose. They clean out the corruption, rot, and bad investments so that growth can be generated on a solid footing. That process was stopped. The very people who caused the problems still have their jobs and are getting more obscene bonuses based on their selling their lies. The rich continue to get richer and more tax adverse.

Now there is so much debt that whole nations are tottering on the brink of insolvency. Other nations and national banks hold the debt of these debtor nations and realize if they fail, everyone goes down. To save the nations more debt is imposed without the regards of the ability to pay but that is on the international front.

We don't have a sustainable recovery because we've developed and economy based on consuming materials built outside of our own country. We produce very few in comparison commodities for internal consumption. Why? Our wage levels and living standards grew to the point where corporations found that they could make more profits by moving the manufacturing process overseas. We are now seeing a decline in wages except in government and financial institutions. Without high wages and still carrying the debts incurred when we did have them, we cannot afford to buy the goods we use to. Real Estate is starting to fall out side the range of affordability. There goes one of the last hopes of the middle class in being able to improve their financial footing.