– The Monetized New Millennium (StealthFlation, Oct 4, 2014):
New Monetized Millennium Facts Jack:
- US real median family income has declined to the level of twenty years ago.
- Labor participation rate has dropped to a 36 year low.
- Total U.S. household debt, currently over $10 trillion, nearly tripled during the new millennium.
- U.S. debt to GDP ratio up over 100% since we entered the new monetized millennium.
- Anemic to flat-line average Real GDP growth throughout the new monetized millennium.
- As for the new millennium inflation results, take a peak at the chart below, it will blow your mind.
Reflated nominal equity prices have certainly been a windfall for the minority of Americans that actually own a stock portfolio, but in the end, they do little for the country as a whole, and the shortsighted Fed policy effort may well have greatly harmed our Nation. In terms of genuine and sustainable economic growth that lifts U.S. boats of all shapes and sizes, the Fed’s fantasy free funds will end up flooding the super ship of state.
The financial sector now accounts for over 30% of all corporate profits. In my view, as mass counterfeiters, we are simply ignobly living off the vestiges of a world reserve currency which was so honorably achieved by a once monumentally productive America. Today, the West prints and parties while the rest of the world works and weeps, that is not a sign of exceptionalism, it’s a sign of weakness and an empire in decadent decline.
So when the next eternally eager equity beaver tells you that gold is nothing but a barbarous relic from monetary ages gone by, you can tell them this; “As the best performing asset class bar none, Gold officially welcomes you to the Monetized New Millennium”.
The bottom line is that we require genuine productive growth to maintain a stable dollar and pay back our monumental national debt. The Federal Reserve’s monetization abomination modus operandi evidently has diminishing returns and eventually will blow up a debased fiat currency………………same as it ever was.
You show me sustainable growth through monetization and I’ll take my bat & ball and go home. Until then, you’re blowing hot air up my backside.