Is the Student Loan Bubble Getting Ready to Pop?

DYI:  Too late - it has already Popped!

Stripped of Accounting Gimmicks, the US Has Been on the Verge of Recession since 2011

Consider this simple example. Let’s say that the US GDP grew by 10% last year. Now let’s say that inflation also grew by 10%. In this scenario, real inflation adjusted GDP growth was ZERO.

However, announcing ZERO GDP growth is a major problem politically. So what do the Feds do? They claim that inflation was just 8%, and BOOM you’ve got 2% GDP growth announced for a year in which real GDP growth was actually zero.

This is one of the biggest games being played by the Fed post-2008. By using a deflator metric that is way below even the bogus CPI measure, the Fed is dramatically understating inflation and overstating GDP growth.

Now… what happens when even this feeble recovery actually rolls into a REAL-recession? What happens when the cycle turns… as it always does… and the Fed has already spent over $3.5 TRILLION pushing the markets into believing that economically the US is sound?

DYI