CHROME IS RECOMMENDED BROWSER FOR IWB

Record stock market does not reflect real economic growth. It’s an empty result of monetary bubble created by the Fed.

Greenspan Throws a Wet Blanket on Hopes for Growth Breakout

Just when you thought the U.S. economy was roaring back to health, Former Federal Reserve Chairman Alan Greenspan is here to tell you otherwise.

“The United States is doing better than anybody else, but we’re still not doing all that well,” Greenspan, 88, said today in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “We still have a very sluggish economy.”

Greenspan said the economy won’t fully recover until American companies invest more in productive assets and the housing market bounces back.

“Almost all of the weakness in the last four, five, six years has been in long-lived investments” in capital goods and real estate, Greenspan said. “Until these pick up, we’re not going to get the kind of vibrant growth that everyone is hoping for.”

Greenspan, who retired from the Fed’s helm in January 2006, said he expects growth to dip below a 3 percent annual rate in the fourth quarter of this year. His forecast is in line with the estimate of 2.5 percent in a Bloomberg survey of economists.

He spoke a week after revised figures showed gross domestic product expanded at a 5 percent rate in the third quarter, the fastest pace since 2003. The data helped drive the Dow Jones Industrial Average above 18,000 for the first time.

http://www.bloomberg.com/news/2014-12-30/greenspan-throws-a-wet-blanket-on-hopes-for-u-s-growth-breakout.html

Throughout the rich world, wages are stuck

http://www.economist.com/news/finance-and-economics/21615589-throughout-rich-world-wages-are-stuck-big-freeze

You can print all the money you want, but it will never boost wages to keep up with prices.

Central banks have been pursuing two goals for the past six years: ignite inflation and an expansion of debt that will supposedly generate “growth.” Despite squandering trillions of dollars, yen, yuan and euros, central banks have failed to ignite sustainable inflation or growth.
There’s nothing mysterious about their failure: you can’t get “good” inflation or growth if wages are stagnant or declining.
The central banks don’t bother to distinguish between “good” and “bad” inflation: any and all inflation is considered not only wonderful but essential to propping up the Ponzi scheme of debt-dependent consumption, a dynamic I described in Central Banks Create Deflation, Not Inflation.
“Good” inflation is wages rising faster than prices. When wages rise faster than consumer prices, households have more money to spend on consumption, and it’s progressively easier for them to pay down debt and support additional borrowing.
“Bad” inflation is prices rising while wages stagnate. In “bad” inflation, prices keep rising as central bank money-printing devalues the currency, but wages don’t rise along with prices. As a result, wages decline in real terms, i.e. purchasing power.
Facebook

Twitter

It only takes a few moments to share an article, but the person on the other end who reads it might have his life changed forever