The Greatest Crackup the World’s Ever Known
By now, anyone with half an inkling of curiosity about why prices and values don’t add up has traced the divide back to the money itself. It’s not hard to see.
Asset prices, like houses and the major stock market indexes, have lost all visible connection with the underlying economy. However, wage growth has stagnated; over the last 40 years low level wages have only increased by $0.32 per hour in real inflation adjusted terms. Stocks and residential real estate, at the same time, have gone to the moon.
Even with the NASDAQ’s 11.2 percent decline from its all-time closing high set on November 19, the index is still up over 110 percent from its March 2020 low. What will it take for the NASDAQ to crash back to earth?
Something else that has gone to the moon is government debt. In 1980, the national debt was $908 billion. Today it’s over $29.8 trillion. That’s an increase of over 3,181 percent. Over this time, however, gross domestic product (GDP) has only increased 632 percent – from $2.86 trillion to $20.94 trillion.
Of course, these are merely the facts and figures. The effects to countless Americans are hard to measure. But, by and large, the last 40 years have been a great disappointment for the American worker – and an absolute boon for the political elites.
In addition to asset prices and government debt, social discontent has also gone to the moon. Here in the LA Basin, for example, some of America’s most resourceful fellows have taken to emulating the corruption found in Washington and on Wall Street. They’re looting stores and plundering freight trains as a matter of business. Daring professions like these flourish when hard work and playing by the rules no longer pays.
What’s really going on…
Spineless Money
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