No Index

As an indicator of real wealth, happiness, or progress, GDP is worthless. All you have to do to raise GDP is to invite in more immigrants. As each one buses and schleps, total output goes up.

The murders got the world’s attention. Hardly noticed was the economy…because, after the communist takeover, it disappeared. You could not say ‘the economy declined.’ There was no economy.

One major consequence of diddling rates to the downside is that debt builds up…which will eventually cause a debt crisis and make it impossible to pay for the free stuff politicians promised.

Both parties now accept deficits. Both approve of more debt…and of diddling interest rates to make it easier to borrow. Both now offer the voters ‘something for nothing.’

Every ‘something for nothing’ government program is actually a transfer program. The feds produce no wealth. They merely take it from some people and give it to another.

Measured in gold, the story takes an even darker turn. Instead of being worth 38 billion ounces of gold, today’s economy is worth only 7.5 billion ounces — less than a quarter as much.