Charles Hugh Smith of OfTwoMinds is a brilliant guy, one who often writes for Chris Martenson’s Peak Prosperity. In one of his more recent posts, he brings some data to the table that makes it crystal clear how artificial and unsustainable our economy is. A few charts from his post:
The growth in debt across the US (all sectors, public and private) over time:
How much money central banks are pumping into the economy to keep it afloat (you can call this “liquidity” or you can call it “buying financial assets”):
Meantime, our actual earning power is declining:
So think about the juxtaposition of those three charts. We’re taking on tremendous debt – that’s both people and government. We have unaccountable central banks pumping in trillions of dollars to keep the system alive. And our earning power – the thing that’s supposed to pay for all this – is declining.
Can anyone possibly argue that this is sustainable?