For the fourth consecutive week, all important monetary aggregates reached yet another new all time high. Not to mention The Federal Reserve's update to the enormous growth in their balance sheet, which now stands at 2.2 Trillion.
This was all augmented by the current press release regarding consumer spending, which saw a dramatic spike (remember we already have an unsustainable savings rate in the low single digits). This will ultimately be to the detriment of the economy as real economic growth (capital formation is a function of savings and investment) will prove impossible without the necessary investment into the various parts of the structure of production.
Without this, it will prove inevitable for continued rising unemployment to be present as well as the conveniently overlooked percentage of discouraged workers. It is amazing how people can overlook the fact that this is the worst recession/depression since 1929 even with doctored government statistics such as the unemployment rate.
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