The Fairy Tale Service Economy



All hail the king, the king is bankrupt...

Can The Economy Recover? by Paul Craig Roberts
There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

Financial bailout aid total: $23.7 trillion -- if all goes wrong LA Times
"Although large in its own right, TARP is only a part of the combined efforts of the federal government to address the financial crisis," Barofsky writes in his latest quarterly report to Congress. "Approximately 50 initiatives or programs have been created by various federal agencies since 2007 to provide potential support totaling more than $23.7 trillion."

The idea that the economy isn't already "all going wrong" after spending over $3 trillion dollars on war and TARP seems to elude many a media mind....got gold?