Walking the Path of Self Destruction, by MN Gordon

If you’re aware that you can’t get something for nothing, you’re miles ahead of many economics PhDs, and virtually every politician. From MN Gordon at economicprism.com:

Central planners have destroyed the future.  Today we walk the path of their self-destruction…

If you recall, fiscal and monetary policies employed to counter the effects of government mandated lockdowns were supposed to stimulate a self-sustaining economic boom.  Instead, these policies of extreme intervention have stimulated chaos and destruction.

The official inflation rate, as measured by the government’s consumer price index (CPI), is rising at an annualized clip of 5.4 percent.  But that’s nothing.  Alternative inflation rates, which better reflect what consumers are actually experiencing, are double and triple the official CPI.

At the same time, the economy appears to be slowing down…

According to the Atlanta Fed’s GDPNow forecasting model, as of October 19, real gross domestic product (GDP) growth in the third quarter of 2021 is estimated to be just 0.5 percent.  This is down from 1.2 percent on October 15, 6 percent in late August, and 14 percent in May.

At this rate, by the next GDPNow update, which is scheduled for October 27, growth estimates could be negative.  And if you factor in the inflation adjusted growth rate, the economy’s already shrinking at a rate of 4.9 percent per year.  In other words, the U.S. economy’s in an inflationary recession.

How could that be?

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