There is a notion within the mainstream media that certain economic indicators are unassailable; they never stop being reliable. The way they look at and report on the system is rather outdated and extremely limited in scope; showcasing and cherry picking only net-positive statistics, even if those stats don’t represent reality. The result is a kind of holographic view of the financial structure; a mirage of a healthy and vibrant foundation that simply does not exist.
This fraudulent view appeals to the masses for a time because it provides fuel for false hopes. In economics, an analyst must always account for two major factors: the hard math and human psychology. These factors tend to conflict during times when a financial bubble is present, and they tend to converge when such bubbles implode. One must never underestimate the power of public psychology, though. Even when the math is screaming that danger is present in the system, a naive and misinformed populace (coupled with central bank manipulation) can keep a dead economy in a state of profane reanimation for much longer than seems logically possible.
This magic show only lasts for so long, however, and eventually the truth strikes those with blind faith in the machine brutally and without mercy.
On the financial side of the great farce, most of the “positive” signs we see are purely debt driven. Cheap debt and credit liquidity has kept zombie banks alive for years beyond their expiration date, but it has also trickled down into main street, where we see extensive commercial retail development and a spike in employment opportunities. Of course, the box stores and construction are being undertaken by developers deep in the red, and most of the debt will not be paid off for years, if at all.
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