The GDP stands for the ‘Gross Domestic Product,’ and basically stands for what government and citizens buy and sell, or how many dollars have changed hands. This statistic is supposed to tell us how good or bad our economy is. If we buy a lot and sell a lot, that is supposed to be good, and the reverse is also indicative. Sounds OK? If then, prices go up, thanks to inflation (printing money to pay government bills), and when you fill your gas tank, buy groceries, pay utility bills, etc, won’t that make the GDP go up? The GDP and inflation rate, seem to contradict themselves, don’t they? If inflation makes prices go up and this causes the GDP to go up, there’s no gain, is there? Or actually, since government creates the debts which inflation pays with un-backed paper dollars or computer entries, is the GDP a fraudulent statistic? Is the ‘official’ inflation rate accurate?
I heard on Fox News last week, that some moronic Congressman or woman has proposed selling the US gold (if it has any to sell), and buying bit-coin with the sale. Since Ft. Knox hasn’t been inventoried for over 75 years, it may not have any to sell, but the very idea is absurd.
Consider the people who spend money. There are literally millions of government employees at all levels, commonly called ‘bureaucrats,’ some of which, “DOLE” has proven unnecessary. Thousands have quit voluntarily, and others will soon get the pink slips. The thousands who have quit on their own, are going to get paid through September, which doesn’t show up in the statistics till after their pay is missing from the stats. The Departments of just about anything in D.C., all think they’re doing a marvelous job of writing thousands of new regulations each year, and then act as judge, jury, prosecutor, and law enforcement, without the permission or vote of the Congress. This is unconstitutional, and causes the GDP and inflation, both to go up.
Are 20% of these government employees not needed, and perhaps half of their departments either, according to the Tenth Amendment? The GDP goes up, inflation goes up, and the debts go up, because budgets have never been balanced, and the presses continue to print increasingly de-valuing dollars. Governments continue to grow, like a cancer. All government employees at all levels are paid with taxpayer dollars, and taxpayers have not given their permission for their hiring. Supposedly, Trump’s tariffs have generated $2.4 trillion, which will go into the Treasury.
Tariffs are paid by consumers with higher prices. Do tariff ‘profits’ go into the GDP? Are we better off economically now, with taxes on everything and consumer and government debts in the tens of trillions? Gold was at $20.67 per ounce for over a hundred years, and now it’s about $3400. An ounce of gold, still buys what it bought when it was $20.67, such as a good men’s suit, or ten of them buying a new car.
America began feeding people in 1972 with food stamps. I remember it and I couldn’t believe that government was now going to feed people! In 2025, everything is being provided, even to illegal’s, such as health care, education, telephones, and all that anyone could possibly need! Biden actually invited them in, and now it is difficult to get rid of them, without “due legal process.” Are illegal’s really entitled to “due legal process?” Is “due legal process,” for anyone, or just citizens? They came in without “due legal process,” so why can’t they be put out, without “due legal process?”
Public housing residents and welfare recipients spend their dollar freebies, causing the GDP to go up, and at the same time as the handouts cause the GDP to go up, they drain the Treasury and cause the presses and computer entries to increase the debt. What does this do to the GDP? The armed forces, government payrolls, welfare, and handouts of thousands of categories, all spend a couple trillion more than is received in taxes. Are taxes paid, part of the GDP? If then, more is spent by the citizenry than is received in taxes, is the GDP trillions in the hole, and the entire measurement imaginary? I think the GDP is a myth, to put it mildly. Remember silver quarters and dimes? Each one is now worth close to twenty times its face value. How does this meld in with GDP?
A bit over a hundred years ago, America, the U.K, France, Russia, Germany and most of the rest of the world, used gold and silver coins as money, and paper money was frowned upon. Now, the virtual entire world is hooked on un-backed paper money, none of which is backed by anything, and it’s ‘value’ is at the whim of its rulers, like Trump’s tariffs, as a classic example. The world’s economy is just waiting for Trump’s latest brain storm. Not a healthy situation!
All I do know is that no promises on paper, unless they’re backed by something tangible, such as a mortgage, will eventually be at the mercy of what backs it. A mortgage is as good as the borrower or the property which backs it, and this has proven a poor backing in millions of cases. Bit-coin will go down like the dollar, which has lost 98% of its purchasing power since FDR, when Cokes were a nickel and hamburgers a dime. At least something can be bought with dollars in hand, but nothing can be bought with bit-coin, as no one has any physical bit-coins! Only computer entries! Physical anything, is suitable for backing, and the most universal, physical, device for saving and buying, in all nations in history, have been gold and silver, which are self-backed, and not answerable to, or dependent on, any government. We provide them at 1% above our wholesale cost, delivered into your hot little hands for you to admire and love!