Before Thanksgiving, I traveled to New York, Vermont and California, visiting four of our six children. Edward is apparently doing well at the University of Vermont. Maria is struggling to build a career as an actress.
Everyone knows that central banks can’t continue to add money and credit forever. At some point we will drown in liquidity. Central banks added about $5 trillion to the worlds’ money base since 2007; if they are going to avoid an inflationary crisis, they will have to contract their balance sheets by selling bonds again.
Last week’s employment, consumer spending and consumer confidence figures seemed to give President Obama a lift. They suggested things were getting better in the US. The recovery is thought to be fragile. It is definitely slow. But is it real? Or an investor fake-out?
Last week, I explored the causes of the GDP slowdown Ben Bernanke et al are trying so hard to reverse. In the recent quarter, America’s GDP growth is clocked at an annualized rate of 2%. Not much above stall speed. And even that is mostly fraudulent.
This morning, I appeared on CNBC. It was a rare appearance, first because I don’t usually do this sort of thing…and second, because it is the first time they asked me. They had seen me speak in London, they said, and wanted to get me on the show.
Yes, I confess. I’m one. A member of the 1% – the few, the lucky, the rich. But I wasn’t always. Far from it. I was…and am…one of those people whom America celebrates – a rags-to-riches story…a self-made man. I have no one to blame for my present condition except myself.