Thursday, July 16, 2015

Where is the multiplier?

How do Kanosians get a growth multiplier from this graph.  The blue line is the exact ratio of interest payments over public debt, the yearly cost of keeping all that principal into the economy.  The red line is inflation, pricing error.

Real growth rates have dropped from 4% to 2% over the period since 1981, and have always been lower than the current cost of money.


The entire sequence looks like a transfer of income from the middle class to the debt cartel via the interest cost mechanism.  Debt is not being inflated away, consumer income is being deflated away to cover debt fees.


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