{"id":59211,"date":"2021-09-04T17:43:46","date_gmt":"2021-09-04T22:43:46","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59211"},"modified":"2021-09-04T17:43:46","modified_gmt":"2021-09-04T22:43:46","slug":"the-illusion-of-stability-the-inevitability-of-collapse","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59211","title":{"rendered":"The Illusion of Stability, the Inevitability of Collapse"},"content":{"rendered":"<h3 class=\"post-title\"><a href=\"https:\/\/charleshughsmith.blogspot.com\/2021\/09\/the-illusion-of-stability-inevitability.html\">The Illusion of Stability, the Inevitability of Collapse<\/a><\/h3>\n<div id=\"post-786802558964737098\" class=\"post-body\">\n<p><i>Beneath the illusory stability of rising GDP, the extremes of debt, leverage, stimulus and speculative frenzy required to keep the &#8216;phantom wealth bubble&#8217; from imploding are all rising parabolically.<\/i><\/p>\n<p><b>Imagine being at a party celebrating the vast wealth generated in the last ten months in stocks, cryptocurrencies, real estate and just about every other asset class.<\/b>\u00a0The lights flicker briefly but the host assures the crowd the generator powering the party is working perfectly.<\/p>\n<p><b>Being a skeptic, you slip out on the excuse of bringing in more champagne and pay a visit to the generator room.<\/b>\u00a0To your horror, you find the entire arrangement held together with duct tape and rotted 2X4s, the electrical panel is an acrid-smelling mess of haphazard frayed wire and the generator is over-heated and vibrating off its foundation bolts. Whatever governor the engine once had is gone, it clearly won&#8217;t last the night.<\/p>\n<p><b>The party is the U.S. economy, and the generator room is the Federal Reserve, its proxies and the U.S. Treasury, all\u00a0<i>running to failure<\/i>.<\/b>\u00a0What we&#8217;re experiencing in real time is\u00a0<b>the illusion of stability and the inevitability of collapse.<\/b>\u00a0I&#8217;ve prepared a few charts to illuminate this reality graphically.<\/p>\n<p><b>Here&#8217;s the illusion of stability in a nutshell:<\/b> while the broadest measure of the economy, gross domestic product (GDP) has continued marching higher (in both nominal and real\/inflation-adjusted terms), the amount of Federal Reserve stimulus and Federal debt required to keep pushing GDP up at the same rate has exploded higher and is tracking a parabolic blow-off.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Illusion of Stability, the Inevitability of Collapse Beneath the illusory stability of rising GDP, the extremes of debt, leverage, stimulus and speculative frenzy required to keep the &#8216;phantom wealth bubble&#8217; from imploding are all rising parabolically. Imagine being at a party celebrating the vast wealth generated in the last ten months in stocks, cryptocurrencies, [&hellip;]<\/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":[24078,150,353,587,5545],"class_list":["post-59211","post","type-post","status-publish","format-standard","hentry","category-economics","tag-charles-hugh-smith-2","tag-collapse","tag-gdp","tag-of-two-minds","tag-stability"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59211","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=59211"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59211\/revisions"}],"predecessor-version":[{"id":59212,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59211\/revisions\/59212"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}