My family watched the animated movie Epic the other night. It was the usual “good vs bad” story. In this case, the heroes were the living creatures of the forest while the villains were the forces of decay and death.
Now, if I were in charge of the screenplay for a sequel, I’d open with a maximally-vibrant forest crammed in every nook with creatures and plants — so much so that it’s now a horrible place to inhabit because there’s just no room for new life to spread.
All births stop. No seeds germinate. Flowers no longer bloom because their reproductive purpose is no longer needed. And people don’t fall in love or get married because, again, there’s no point.
Perhaps I’d title this movie Epic Fail, in honor of our those driving our economy and society towards a similar end.
The US Federal Reserve currently believes they are doing “good” by preventing downturns and sending asset prices higher. But in reality, they’re setting the stage for a very disappointing future. Perhaps even a violent one.
Borrowing Tomorrow’s Growth Today
As of this writing on Monday November 25th, 2019, stocks are once again powering to all-time new highs. The vigor is so strong that even such cheerleading outfits as the WSJ are starting to have trouble pinning the powerful advances on yet another China trade rumor.
The simple truth is that the central banks are easing (i.e. printing money) like crazy. Their entire strategy seems to boil down to this: We’ll just keep printing until growth returns.
Their collateral for today’s borrowing binge is tomorrow’s growth.
But what if that expected growth doesn’t materialize?
by wallpaper 
