This chart is the ugly truth about the true standard of living in the US right now (the black line is US personal income; the orange line is US personal income less government transfers). The gap is filled by
what can only be a short-term fix at the expense of the future standard of living of Americans.
I have been wondering lately when the Fed will stop being responsible for propping up the stock market by printing money. The answer? It won't be a choice but will be forced upon us by some outside force or event (a failed US Govt. bond auction?). Japan has 10 years lead on us down this slippery slope. And, they don't have the benefit of a reserve currency. I suspect their fall will come first. But, ours will be harder/farther.
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