Nice to look at history once in a while. As we can see 30% of corrections were frequent,
unlike today where we suffer from asset price inflation with low economic growth relative.
2008 we had a REAL GDP of $15 trillion with $10T of public debt.
2021 18T of REAL GPD &
28T of public debt.
Clearly, deficits do not contribute to economic growth. We only get $0.16 cents of economic
growth for every new $1.00 created by Gov't from thin air. Another way to think about it is
that we are adding $0.84 of liabilities for $0.16 cents of economic prosperity.
On the other hand, deficits have done a wonderful job smoothing out bear markets to the
point nothing anymore really matters anymore. Except for nothing in life remains the same
the law of diminishing returns will eventually have the final say in the matter.
The more we print the more we will have to print or else!
unlike today where we suffer from asset price inflation with low economic growth relative.
2008 we had a REAL GDP of $15 trillion with $10T of public debt.
2021 18T of REAL GPD &
28T of public debt.Clearly, deficits do not contribute to economic growth. We only get $0.16 cents of economic
growth for every new $1.00 created by Gov't from thin air. Another way to think about it is
that we are adding $0.84 of liabilities for $0.16 cents of economic prosperity.
On the other hand, deficits have done a wonderful job smoothing out bear markets to the
point nothing anymore really matters anymore. Except for nothing in life remains the same
the law of diminishing returns will eventually have the final say in the matter.
The more we print the more we will have to print or else!
Trade active
COVID-19 once again proved that deficits do not contribute to economic growth.The $20 trillion additional Gov debt only managed to pump up asset price inflation
and real economic inflation.
While deficits have done a nice job smoothing out recessions in the past, this time with tariffs, they won't!
No one is coming to save us, with borrowed money to sprinkle us all with green dollars.
As I said in 2021, the more we print, the more we will have to print with less and less economic benefit until it all goes to hell!
Real Macro Economic Investing
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.