Too much debt causes growth stagnation and we have had subpar growth since the financial crisis, even with unprecedented stimulus. Do you dispute that? Inflation on all the things that matter is a fact of life for the 99% who don't live in the hallowed halls of the intellectual elite who pontificate from behind the high walls of the Fed. Stock and bonds are both at lofty levels, not because of a miracle economic growth story, but because of a much simpler explanation related to flooding the world with US Dollars from ongoing QE (from maintaining the Fed balance sheet with more debt as old debt expires), zero interest rates, and continued deficit spending. It's Occam's Razor. The simplest explanation is usually the correct one.
US wages for the 99% continue to stagnate and the jobs picture is only improving because the jobs they do get are part time to replace the good jobs they used to have and so many people (93M now) are no longer in the labor force, that it makes the unemployment figures look good, because they are no longer counted in the figures.
The last vestige of a dying and desperate set of economic leaders is when they lie to themselves to tell themselves they are right. You are well and truly fooled. I'm not happy that I have more knowledge than most people like you. I wish I was just as ignorant and that I didn't know what is coming. No one can guess the timing. And if I've been wrong about anything, it has been mostly by having the temerity to guess the timing of things. You think there are no laws of the universe. Actually, there are. It's called mathematics. Too much debt, too much spending, too much stimulus, has a mathematical consequence.
You think it is all magical voodoo, but to people who are good at math, like I am, we know that when things get so out of balance, the statistics tell you it becomes a virtual certainty that a counter balancing short term event or series of micro events over a long period will bring things back to some kind of equilibrium. Either way, it will be painful. All the Fed can hope for now, due to their misguided policies, is to shoot for a boiling of the frog scenario, rather than a short catastrophic decline. Either way, pain cannot be avoided. If you think it can, then you have gone from the town of Hope to Fantasyland. |
