America's Economic Future Is A Disaster. Next Crash, Bigger, Longer Than 2000 And 2008 combined. We are our own worst enemy. U.S. GDP on the road to zero growth by 2050.

Paul B. Farrell:

Near zero economic growth by 2050? Yes, America’s economy is collapsing. Fast. Yes, the “most depressing forecast ever,” says InvestmentNews, trusted source for 90,000 professional financial advisers across America.

Actually it’s worse than depressing if you read the details in “On Road to Zero Growth,” the latest Quarterly Letter from Jeremy Grantham, founder and chief investment strategist for the $100 billion GMO money managers.

Yes, today’s fiscal-cliff drama is just a warm-up for what’s coming. America’s economic future is a disaster. We are going over a bigger game-changing economic cliff, into a long-term chasm. And it’s unavoidable.

Why? Because our myopic Congressional leaders and Fed chairman are focused on short-term fixes, piling on more monetary-stimulus debt, while avoiding America’s systemic long-term problems. Yes, we are our own worst enemy and nothing will keep us from driving down the road to zero growth and into painful austerity, just like the 1930s.

Listen closely: here’s Grantham’s overview of America’s economy from the late 1900s through 2050: “The trend for U.S. GPD growth up until about 1980 was remarkable: 3.4% a year for a full hundred years.” That powered the great American Dream. “But after 1980 the trend began to slip.” And unfortunately the economy is “not going back to the glory days of the U.S. GDP growth.”

Get it? A century of high-growth prosperity, then our GDP growth dropped “by over 1.5% from its peak in the 1960s and nearly 1% from the average of the last 30 years.”

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Black Swan: next crash, bigger, longer than 2000 and 2008 combined

Grantham is a realist, understands human nature, personally, nationally, globally. It will probably take a global catastrophe — pandemic, famine, WWIII or a monetary system crash bigger than 2000 and 2008 combined — to awaken America: “Attitudes are sticky. We cling to the idea of the good old days with enthusiasm. When offered unpleasant IDEAS (or even unpleasant facts) we jump around looking for more palatable alternatives.”

Why? Americans are dreaming, in denial, trapped in a delusion: The return to 3%+ GDP growth. Politicians are even biggest dreamers: “The tech boom and bust and the following housing boom and housing and financial busts helped camouflage the recent unpleasant economic development lying below the surface: the steady and important drop in long-term U.S. growth,” warns Grantham.

Global GDP will drop, too, but far outperform America. The “bottom line for U.S. real growth,” says Grantham, “is 0.9% a year through 2030, decreasing to 0.4% from 2030 to 2050.”

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The Global Economy Has Done A Complete 180, Now It’s The US’ Turn To Be Weak. ISM MANUFACTURING FALLS TO 49.5 (Analysts Expected 51.4)!!! Differences Between First Half Of Year And Remaining Half Are Very Dramatic

Bill Gross Presents The Big 4 Structural Issues That Will Haunt The US Economy For Years

Bill Gross: Debt, demographics, technology and globalization are weighing on U.S. economic prospects, Pimco’s Bill Gross said Tuesday in his monthly newsletter.

Forces beyond our control.

from MarketWatch:

1.) Developed global economies such as the U.S.’s are carrying too much debt. “As we attempt to resolve the dilemma, the resultant austerity should lower real growth for years to come,” Gross says.

2.) Globalization has sparked growth, “but if it slows, then the caffeine may wear off,” Gross warns.

3.) While technology has been a boon to productivity and therefore real economic growth, it has its shady side, he adds. “In the past decade, machines and robotics have rather silently replaced humans, as the U.S. and other advanced economies have sought to counter the influence of cheap Asian labor.”

4.) Gross points out that demographics are becoming a silent growth killer. “Almost all developed economies, including the U.S., are gradually aging and witnessing a larger and larger percentage of their adult population move past the critical 55-year-old mark,” Gross says. “This means several things for economic growth: First of all from the supply side, it means productivity and employment growth rates will slow. From the demand side, it suggests a greater emphasis on savings and reduced consumption. Those approaching their seventh decade need fewer cars and new homes.”

China surpasses US as top global trader

IRWIN KELLNER: Get ready to go over the fiscal cliff. Austerity is coming, even if cliff is avoided.

from MarketWatch:

Agreement or not, 2013 will bring higher taxes and lower spending, so be prepared.

Read more at http://investmentwatchblog.com/black-swan-americas-economic-future-is-a-disaster-next-crash-bigger-longer-than-2000-and-2008-combined-we-are-our-own-worst-enemy-u-s-gdp-on-the-road-to-zero-growth-by-2050/#tifiIAfjtpt86zFl.99