Wednesday, October 12, 2016

Ungovernable Nation, Unmanageable Economy

Not only will Fed policy not fix what's broken, it will actively make the structural problems worse.

Yesterday I described the conditions that render the U.S. ungovernable. Here is a chart of why the U.S. economy will also be ungovernable. Longtime readers are acquainted with the S-curve model of expansion, maturity, stagnation and decline.

This is why the economy will be ungovernable: all the financial gambits that have been played to create the illusion of "prosperity" have reached stagnation/decline.
The key take-away is that the financial gambits--QE, zero interest rates, etc.--did not actually address the economy's structural problems. All the Federal Reserve and fiscal stimulus policies accomplished was to prop up the corrupt, stagnant engine of debt-serfdom, rising inequality and financial fragility.

1 comment:

lmclain said...

Who thinks this is going to turn out well??

Tinkerbell, Snow White, and the Lion king.
They are running out of tricks to prop up the economy.

It will happen very fast. Better be ready.