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.

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