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Gross Domestic Product GDP is said to be a estimate of a nations economic growth. How a country’s GDP is calculated is using the following formula:
GDP = C + G + I + NX.
“C” is equal to all private Consumption, or Consumer spending in a nation’s economy, “G” is the sum of Government spending, “I” is the sum of all the country’s investment, including businesses capital expenditures & NX is the Nation’s total net exports, calculated as total exports minus total imports (NX = Exports – Imports).
Where this formula gets it totally wrong its just assuming consumption is equal to consumer spending, which is failing to account for sum of principal + interest payed out of a forever deficient volume of circulation only ever comprised of some remaining principal.
As a result this is likewise failing to conclude that most if not all government expenditure is not investing taxation into any nation, but instead the principal & interest formerly stolen out of circulation in all private debt, only to be laundered back into circulation as an ever greater escalation of government debt which is what funds government expenditure, apposed to taxation that is paid out of circulation, either directly or indirectly into the banks coffers to service the ever greater escalations of government debt.
Although GDP accounts for imports & exports this only accounts for just one variable of reflation & deflation under banking.
What makes GDP an insane contradictory paradox is firstly its adding the sum of deflation instead of subtracting it which somehow estimates growth based on inflation that is in truth non-existent, & secondly even if we did have inflation you can not just assume any existence of inflation can be an indicator of growth either.
Real growth can only be determined when any increase in circulation is always equal to remaining debt & always equal to represented property value, where there quite literally is no inflation or deflation.
Advocate / mentor, Co-founder, Co-director – Mathematically Perfected Economy™ (au)