Welcome to later.
Friday, October 21, 2022
Tuesday, October 11, 2022
Payback is a bitch, or why everything sucks
Debt stopped buying economic growth, if it ever did in the first place, way back in 1982, but no one has seemed to notice.
Prosperity based on debt is not prosperity.
Debt draws forward prosperity, and then when you get forward, there's no prosperity there because you already made off with it.
It's like the polar explorer who starved and froze to death because he ate the food caches on the way to the pole instead of saving them for on the way back.
Sunday, September 4, 2022
Money printing getting way ahead of output is the cause of the current inflation
US GDP last clocked in at $24.883 trillion in 2Q. The total public debt at the end of 2Q is $30.569 trillion.
That's now a mismatch of 123%, up from 105% in 2013, ten years ago, when the total public debt was $16.8 trillion and the GDP $16 trillion.
In other words, the debt has grown by 82% over the period while the GDP has grown by only 56%.
The debt represents spending money we do not have, and the increase in the debt represents the spending of more money we do not have. We simply create it out of thin air to facilitate the process. It doesn't matter what form it takes, whether in the form of Treasury securities or physical money.
Spending go whirr, Fed money machine go whirr, debt go whirr, and eventually inflation go whirr. Inflation is the payback for going into the debt for which we refused to pay at the time.
Debt draws forward prosperity . . .
But it should come as no surprise that the future we robbed has no prosperity in it, now that we have arrived there.
And people wonder where the inflation came from.
Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.
Friday, July 29, 2022
America and its people have added over $12 trillion to their total credit market debt outstanding just since 2019, but that has done little but stall the decline of debt growth
The $90 trillion millstone: We did it to ourselves.
We are now in the future we tapped in the past for the prosperity of "debt draws forward prosperity", and there's little here to be found.
From 1946 to 2008 when we hit the debt growth iceberg, real GDP grew at a compound annual rate of 3.324%. Since then it has fallen 49%, to 1.68%.
We should have stayed with capitalism in the post-war, where one risks actual savings instead of future notional tax, income, and fiat money "revenues". But capitalism went out the window a long time ago, bringing with it the end of the gold standard, the creation of the Fed, and the introduction of the income tax, among other horribles.
Payback is a bitch, and what can't be paid back won't. The rest comes out of your hide.