Paul Craig Roberts: Can the Economy Recover?

Paul Craig Roberts and I have pretty much the same answer to this question. He says:

There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

He then goes on to identify Goldman Sachs as “the bankster firm [that] controls the economic policy of the United States.” Read the full article here.