“A Growing Economy… What do the numbers say?”
Ty J. Young Editorial
The Federal Reserve Economic Data (FRED) charts paint a grim picture of our economy during the last seven years. This runs contrary to much of what you hear on the news, i.e. “…Bailouts saved us… the Fed printing money helped grow the economy… 2-3% growth is the new normal.”
In reality, consider some of the more ominous economic data that is publicly available, but rarely reported:
1) Student Loan debt up by $600 billion ($100 billion to $700 billion from 2009 through 2013)
2) Food stamp costs up 158% ($29 billion to $75 billion from 2009-2013)
3) Federal Debt has almost doubled ($10 trillion to $19 trillion from 2009-2015)
The data doesn’t stop there. It is important to remember what we have been saying for years: the stock market appreciation, while beneficial to the balance sheet of many 401k’s, has been artificial in nature and has not been sustained through traditional economic growth.
The worrying trend lines continue:
1) Money printing up 368% ($800 billion in 2009 to $3.75 trillion in 2014; More of something lowers its value – and this has resulted in the largest increase in money supply in American history!)
2) Labor Participation Rate down 9 million jobs. (from 65.9% of the population in 2007 to 62.75% in 2014 – that is the lowest percentage of Americans working on record.)
3) Median Family income down 8.4%. (Since the start of the recession in 2007 it has declined from $55,700 to $53,900 in 2009. However, AFTER the recession [allegedly] ended in 2009 incomes continued to decline down to $51,000 by 2013.)
Does any of this data look like a healthy economy? Does it give you confidence for the future?
The Obama era has basically been 6 years of no real fundamental economic growth. Companies have had strong earnings (a quarter here, a sector there) but the totality of the economy since 2009 can be summed up in one word: anemic.
Is it time to find safety for your portfolio? Call us now. 877-912-1919.