Chris Leithner’s latest essay addresses the question, is the economic recovery from the recession of the 2001-2002 real or phony?
Focussing on the US and Australia, Leithner argues that it is mostly bogus becuase it was based on the buildup of debt accompanied by the consumption of capital. The consumption of capital, leads to impoverishment in the longer run because the ability to create real wealth is impaird, but this has been hidden in the statistical measures by the inflation of asset values. He notes, “Alas, we live in a world where economic logic is obscured and history is derided, and therefore where lessons are seldom learnt and mistakes routinely repeated.”
This is a very rich and detailed essay, worth the time spent to read.
