The private sector exists only because of the money supply

   All these claims about recovery do not seem to fit with reality. Local and state governments continue to cut spending. Police officers, teachers, and government employees of all types continued to be laid off. Excessive budget deficits are preventing the state from being able to keep their operations going. If a recovery was real, there would be enough taxable income derived from the private sector to pay for these activities. Higher employment levels, higher consumer spending, higher real estate prices would have created the taxable revenue needed to continue funding state and local enterprises. Some might argue that these enterprises should have never existed in the first place. Perhaps they are right. But the point is, the fact that these activities are being downsized is a symptom of economic weakness. That the private sector economy lacks the financial strength that the government needs to withdraw taxes from. 

  Now the president makes the claim that there needs to be more math and science so as to improve the private sector. As if somehow new financial strength can be reborn by simply improving math and science. While new technology would certainly be nice, that is not what lends to financial strength. New technology is constantly be created. The aisles are filled with it. Whats down is not technology, what is down is consumer spending.

  The federal reserve created nearly 2 trillion in quantitative easing to help the economy recover. And instead of seeing a rise in employment levels, consumer spending, and economic growth, the dow was pushed up from 6700 to 12,000. Oil prices have doubled from being below 40 dollars to now over 80 dollars. Its clear where this liquidity went to. I personally invest myself. Am I grateful for the gains. But at the same time, you have to ask, is this the only sector that the fed intends to prop up?

  The fed is determined to break 14,000 and beyond, and it clearly has the liquidity to do it. But is equities and commodities going to be the only game in town from now on? This is not a consumer led economy where higher wages leads to higher consumer spending leading to higher prices. Higher prices appear to come out of no where even when wages, employment, and spending remain down. This is trickle down economics. Businesses and financial institutions do not even need consumers any more to help prop up inflating prices. They can just ask for more liquidity from the fed.