THIS TIME IT'S DIFFERENT

 

AGGREGATE COMPOUND INFLATION RATE OVER THE LAST FOUR YEARS: %25

https://truflation.com/methodology

The paper currency/ debt based Financial system is reaching some sort of critical mass.

The dumbest thing you can ever say in economics is "this time it's different."

But this time it's different.

Because: We've reaching a point in the Global Debt system where all the old remedies no longer work, they just make things worse.

Case in point: Supply Side Economics.  When introduced in 1980 the US was in surplus and the top tax bracket was still 70 percent.  So cutting tax rates and regulations and using debt to create new business all made sense.

Now the top tax rate for many businesses and many of the top 1 percent of the country is ZERO.  because there are so  many loopholes and exceptions, deductions, tax havens, and complex trust structures. 

And the US Total debt is 120 percent of GDP.  And the global debt structure is 350 Trillion dollars.  About a third of that is dollar denominated if you take into account Eurodollar debt.

So what happens now when you cut taxes?  You go farther into debt.

What happens now when you cut regulations.  Goods become more expensive which drives the economy farther into debt.

What happens now when you lower rates to help the economy?  You go farther into debt.

A big problem is that the smart guys at the top of the Financial Industry have figured out how to profit off of debt.  It doesn't have to be productive any more.  The more of it, the more money can be made off it a the very top of the lending pyramid.  

And the more of it the less the currency is worth in terms of buying real things.

We are there.

So what's the solution?

There isn't one.

Sorry.  

That's the reality.

Not until there's a new currency system. Which won't be any time soon.

The real solution is protect yourself.  Because nobody will  do it for you.

Understand this debt based Financial System.  Invest accordingly.