{"id":53619,"date":"2020-06-11T16:09:20","date_gmt":"2020-06-11T21:09:20","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53619"},"modified":"2020-06-18T07:50:21","modified_gmt":"2020-06-18T12:50:21","slug":"unstoppable-the-greatest-depression-and-the-reverse-wealth-effect","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53619","title":{"rendered":"Unstoppable: The Greatest Depression and the Reverse Wealth Effect"},"content":{"rendered":"\n

Unstoppable: The Greatest Depression and the Reverse Wealth Effect<\/a><\/h3>\n\n\n\n

We are entering The Greatest Depression because there is no exit.<\/em><\/p>\n\n\n\n

I’ve endeavored to explain why The Greatest Depression is unstoppable in recent posts:<\/strong><\/p>\n\n\n\n

The Covid-19 Dominoes Fall: The World Is Insolvent<\/a> March 16, 2020<\/p>\n\n\n\n

Pandemic Pandemonium: The Tides of Globalization and Financialization Reverse<\/a> March 31, 2020<\/p>\n\n\n\n

Here’s Why the Economy Won’t Recover–and No, It’s Not Covid-19 or the Lockdown<\/a> April 23, 2020<\/p>\n\n\n\n

What’s Collapsing Can’t Be Saved: Our Fraudulent Economy<\/a> April 22, 2020<\/p>\n\n\n\n

Why Assets Will Crash<\/a> May 4, 2020<\/p>\n\n\n\n

Our Inevitable Collapse: We Can’t Save a Fragile Economy With Bailouts That Increase Fragility<\/a> May 1, 2020<\/p>\n\n\n\n

Globalization and Financialization Are Dead, and so Is Everything That Depended on Them<\/a> May 15, 2020<\/p>\n\n\n\n

Our Fate Is Sealed, Vaccines Won’t Matter: Four Long Cycles Align<\/a> May 19, 2020<\/p>\n\n\n\n

Consumer Spending Will Not Rebound–Here’s Why<\/a> May 18, 2020<\/p>\n\n\n\n

This Is How Systems Collapse<\/a> May 30, 2020<\/p>\n\n\n\n

I’ll try to summarize all this as simply as possible:<\/strong><\/p>\n\n\n\n

1. The global economy’s cost structure<\/em> has been fatally distorted by central bank policies of inflating asset bubbles and reducing interest rates to near-zero.<\/p>\n\n\n\n

2. Earnings from labor have stagnated or eroded since the era of globalization \/ financialization took off around 2000.<\/p>\n\n\n\n

3. Everything costs too much, i.e. is no longer affordable from earnings alone, so the only way to maintain the current costly lifestyle is to borrow money and use it to pay current expenses. This is true for every sector: household, corporate and government.<\/p>\n\n\n\n

4. As a result, everyone now needs every dollar of income just to pay their expenses, including interest and principal on their rising debts. There is no slack (buffers) in the system at all.<\/p>\n\n\n\n

5. This can be visualized as a row of dominoes. Once the first domino falls, every domino will be toppled.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Unstoppable: The Greatest Depression and the Reverse Wealth Effect We are entering The Greatest Depression because there is no exit. I’ve endeavored to explain why The Greatest Depression is unstoppable in recent posts: The Covid-19 Dominoes Fall: The World Is Insolvent March 16, 2020 Pandemic Pandemonium: The Tides of Globalization and Financialization Reverse March 31, 2020 Here’s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[39,24078,383,29245,587,13234],"class_list":["post-53619","post","type-post","status-publish","format-standard","hentry","category-economics","tag-assets","tag-charles-hugh-smith-2","tag-great-depression","tag-greatest-depression","tag-of-two-minds","tag-wealth-effect"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53619"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53619\/revisions"}],"predecessor-version":[{"id":53620,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53619\/revisions\/53620"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}