The Fed’s have thrown the Keynesian sink at the economic problem. The largest fiscal and monetary stimulus known to the world has not produced a recovery, despite what the media and Administration want you to believe.
Here is just another example of unsustainable government spending that produces nothing, yet is counted as improving GDP.
Global Economic Intersection estimates in “Personal Transfer Payments and GDP,” the accumulated value of “extra” transfer payments Americans received from 2008 to 2010 — that is, the amount over and above the long-term trend – worked out to about $569 billion.
By blogger John Lounsbury’s reckoning, that suggests the “recovery” the bulls keep harping on about — which, aside from the nasty little unemployment problem, isn’t that great to begin with — is less than it seems.