Picture Of A Depression

(Click chart to enlarge)

“That blue line is the REAL GDP in the economy going back to the early 1990s. It is final private demand on a y/o/y basis. You will note that it is in fact down more than 20% from the peak (these are compound annual change rates.)

The reason we have not seen an all-on collapse - yet - is that the government has stepped in and has borrowed and spent a literal $3 trillion over the last two years for the purpose of hiding the insolvency of virtually every bank and a good number of citizens in this nation [political entrepreneurs and crony capitalists]along with virtually every pension plan, annuity and other "defined benefit" plan and institution.

They also changed the rules of the game regarding asset valuations - that is, they cheated. This gambit has produced a veneer of recovery.

So now you have "economic recovery", you say? Like hell. You have an economy that is literally bleeding from the femoral artery as the nation's left leg has been severed above the knee by a bunch of homicidal maniacs on both Wall and K Streets. The patient is alive only because they are pumping in blood at a rate that exceeds that which is spraying all over the floor while you're calling the patient "healing"?”