{"id":7922,"date":"2015-05-08T05:44:23","date_gmt":"2015-05-08T10:44:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7922"},"modified":"2015-05-08T05:44:23","modified_gmt":"2015-05-08T10:44:23","slug":"the-next-94-days-could-be-bad-for-your-wallet","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7922","title":{"rendered":"The Next 94 Days Could Be Bad for Your Wallet"},"content":{"rendered":"

The Next 94 Days Could Be Bad for Your Wallet<\/a><\/h3>\n

The Longest, Deepest Depression in US History<\/strong><\/p>\n

Yesterday\u2019s good news was that there will be\u00a0no 25-year recession<\/a>. \u201cWe should be so lucky,\u201d is the way a New Yorker might react. Because the bad news is much worse. The logic of the \u201clong depression\u201d is simple. Aging populations, debt, zombification \u2013 all of which slow growth.<\/p>\n

How many old people and zombies do you need before an economy comes to a halt? Nobody knows. But the drag from debt is observable and calculable. Over the last three decades, approximately $33 trillion in excess debt has been contracted \u2013 above and beyond the traditional ratio to income \u2013 in America alone. And growth rates have fallen in half.<\/p>\n

That\u2019s because dollars that would otherwise support current spending are instead used to pay for past spending. Our old debts have to be retired with current income. The money doesn\u2019t disappear, of course. Some goes to creditors who spend it. Some comes back as capital investment, which is a form of spending. But as credit shrinks, generally, so does the economy.<\/p>\n

 <\/p>\n

\"Thomas_Nast_Peoples_Money_slideshow\"Howling, whining and finger-pointing are well-worn traditions. Especially when the question is where the money disappeared to and whodunnit.<\/p>\n

Cartoon by Thomas Nast<\/p>\n

 <\/p>\n

And that brings us to the impossible situation we\u2019re in now. In order to get back to a healthy ratio \u2013 say approximately $1.50 worth of debt for every $1 in income \u2013 you\u2019d need to erase all that excess that has already been contracted. In other words, you\u2019d have to take $1 trillion out of the consumer economy every year for the next 33 years.<\/p>\n

It would be the longest and deepest depression in US history.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Next 94 Days Could Be Bad for Your Wallet The Longest, Deepest Depression in US History Yesterday\u2019s good news was that there will be\u00a0no 25-year recession. \u201cWe should be so lucky,\u201d is the way a New Yorker might react. Because the bad news is much worse. The logic of the \u201clong depression\u201d is simple. […]<\/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":[175,195,2310,240,391,5232,536,1264,5252],"class_list":["post-7922","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit","tag-debt","tag-depression","tag-economic-growth","tag-growth","tag-long-depression","tag-money","tag-recession","tag-zombification"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7922","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=7922"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7922\/revisions"}],"predecessor-version":[{"id":7923,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7922\/revisions\/7923"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}