Summary: The US economy has taxied down the runway since the end of the recession in 2009, with a failed attempt to take off each year. Now we try again. The throttles are firewalled, the crew and passengers excited at the prospect of takeoff . But some begin to worry as the end of the … Continue reading Warnings about the economy from people you should listen to
Summary: Yesterday's post The end of the post-WWII world is not the end of the world discussed the large-scale processes at work now. Today we discuss the most astonishing -- and seldom seen -- aspect of these things. The problems of the many individual nations in crisis have received ample attention from experts. The two global … Continue reading The unseen but perhaps decisive grand alignment of the nations!
One of the great similarities of our economic downcycle and Japan's two decade long journey to oblivion: both are periods of economic stress caused by private sector deleveraging -- in which the government mitigates the resulting pain by borrowing and spending. Japan's government has run up terminally large debts, on a gross basis equivalent aprox to 2x its GDP. We're on the … Continue reading A look at our government’s debt – rising because we like to spend
Every link of America's observation-orientation-decision-action loop is broken. One example of a broken observation is our blindness about America's fading economy. As seen in the worries about a lost decade ahead, similar to that Japan experienced following the 1989 bust (see Wikipedia for details). That would be unpleasant, but the reality is worse: we just experienced … Continue reading Some Americans worry about we’ll have a lost decade. Bad news – we just had it.
Summary: The madness of early 21st century America will baffle future generations. Esp our determination to spend ourselves to destruction, borrowing to maintain a lifestyle beyond our income. Our cure requires looking at ourselves, seeing past our optimism and hubris to the causes of our problems: as Michael Jackson says, the man in the mirror. … Continue reading Future generations will never understand our shopping madness