|The Above Chart Is Not A Reflection Of Normal!|
The current economic trends are unsustainable and unworthy of our faith. The markets reflect what I consider a total disconnect from the economic reality of sustainability, the numbers going forward simply do not work. I find little reassurance in trends that filter much of society's money and wealth into paper assets and promises rather than what we see as real and solid tangible assets. This has masked inflation by taking newly printed money out of direct competition for tangible goods which would normally drive their prices higher. Instead, it has made many goods downright cheap in comparison to prices people pay for things that are not real and often of questionable value.
A matter that weighs heavy upon both the economy and society, in general, is the productivity debate. Economists trying to explain the apparent structural slowdown in productivity growth have been forced to ask where is the missing increase? No easy answers exist to the questions arising from our evolving economic situation and the encompassing concerns about how we measure structural shifts in the labor market, a dearth of investment opportunities, productivity-diluting technological innovations, technology-driven skills mismatches and growing inequality. Efforts to increase demand and pull productivity forward have failed and resulted in massive debt growth across the world.
|As Robots Take Our Jobs What Becomes Of Us?|
Over the long-term what the economy is presenting us with today cannot be called the new normal in that little of we call normal is reflected in this economy. While growing debt and expanding credit have moved demand forward we should not delude ourselves into thinking it will be repaid. Much of it will slip into default exacerbating future problems. It may be time for mankind to take a moment and ponder what the human animal really wants, and the fact is we are still really just an animal and the answer might be something totally different from what we are being told by those we have given the power to shape our future.
|Two Very Different Pictures Of The Future|
At this point, the idea of a sustainable and balanced future seems rather elusive and it does not seem that we are on a course towards perpetual bliss. As this is being written the drums of war drown out reason and the threat of war with countries such as Russia, North Korea, or even China are all too real. Over the years as society has become richer we have seen the relative value placed on different parts of our lives shift. Overall those in charge and the elites have failed to create a compelling answer to our woes. It will be most interesting as we progress to see if we can channel our time, income, and creativity towards solving our problems rather than diverting our energy into creating new ones.
Footnote; Today we find we are still trapped in the box Ben Bernanke built with no way out, compounding our problems is the fact we never received the promised economic growth promised to flow from his financial remedy. The article below explores this situation.