So Following Along The Reagan Trajectories

mascale

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Feb 22, 2009
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Anyone can later on follow along any various data sources.

In 1980 QII, BEA Personal Income was about $2.2 tril., the federal reserve Total Credit Market Outstanding, Line L1 Flow of Funds, about $4.7 tril. Total Credit was about 2.1 times personal income, and a ratio set to expand. By 1990, Personal Income was about $4.8 tril. Total Credit was about $13.7 tril. Total Credit was about 2.85 times personal income, and soon there would be a President Clinton. For Bush I, Term I: The Reagan Trajectory already had stopped working.

All that money had gone to the federal defense contractors, and sub-contractors. Statutory federal debt had gone from $0.907 tril. to $3.233 tril. That was Reagan Trajectory One.

Clinton Gore would slow the growth of Federal Deficit. By 2000 it was $5.7 tril, less than double the 1990 amount. The Reagan Trajectory had more than tripled that when in place. By 2000,Personal Income was about $8.6 tril. The Total Credit Market had become $37.2 tril. Al Gore had famously invented the internet(?). The Debt to Income Ratio herein, was 3.2
times, and crashing. The $2.5 tril increase was still a lot of money, even then(?). And so buying into the federal deficit had become a Silicon, tinsel idea. idea. Mostly, The low income sector had also prospered with tax credits and other relief.

Bush Cheney would nearly double the federal deficit by QIII 2008, $10.0 tril. The credit market had not tripled, but would be $53.2 tril. Personal Income would be $12.5 tril. And so back to a crashing event the whole thing went. The Macro personal income to debt ratio was 4.3. Famously, mortgages got bundled, and mostly many did not get paid. Under Clinton-Gore, mainly investors had gone unpaid.

So do we see the Reagan Trajectory, put on hold by Clinton-Gore, re-accellerated under Bush Cheney? Personal Income is now about $14.0 tril, with the Total Credit Market still fairly moribund--$57.5 tril. 4.0 times Personal Income. The ratio direction, however, is suddenly the opposite of usual.

So what holds any of this all up? Statutory federal defict was $0.907 tril. in 1980, $3.23 tril. in 1990. $5.67 tril. in 2000, $13.561 tril. in 2010, and $16.7 tril. now. Some of that has been redistributive, so personal income has increased nearly $2.0 tril. since 2009. The total credit market has only increased $4.0 tril. since 2009. That ratio of income increase to debt increase is only two times. The Increase of The Statutory Federal deficit has been $4.8 tril. What Bernanke has been doing with QE types of methods, the economy has been doing on its own, with the federal government now the debtor of last resort!

In the United States, we do see state funded bureaucrats and teachers as recipients of lots of the stimulus money, essentially by-passing the private sector of personal income and market increase. These are state-supported rich people. That can in fact be said to be, Reagan Trajectory II.

If Personal Income has been creeping up to repay the Credit Market, then at least that portion likely represents the inclusion of the low-income market in the Obama-Biden fragile recovery, tax-base free(?). The Ivy League thinkers have been by-passed at least a little bit. People who buy things help businesses and borrowers, pay back debt.

So it is not entirely the Reagan Trajectory, promised. Is just looks a whole lot like it! Upper income sectors have done OK. Gradually everyone else is learning, "In the Toilets you must go, You must go, You Must Go! Like Our Bums on Venice Beach--See our Third World nation--Emerging(?)!" Such equality has never been seen before in history--except for maybe, at least a few hundred, millions of times.

"Crow, James Crow: Shaken, Not Stirred"
(Great Stallion water at trough of well-spring, on the plain! Great Stallion shows no need of Toilets, as an outcome! Many young warriors do not play in Great Waters of Wondrous Stallion!)
 
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