The Ratio Expansion is unprecedented in US HIstory.
A clear pattern emerges after the initial Apex - the
gentle stair-step higher into higher and higher Highs.
Debt itself remains the Life-Support of the US Economy.
The Debt to GDP ratio is the Probability of a Nations
ability to Pay Its Debts.
In contrast to the Wilshire 5000, the numerator in the chart above includes the total value of public and private equities. However, it only gets published quarterly and therefore is always lagging a bit behind. On the upside, it has data going back to the 1940s, thereby providing a more historical perspective.
If Hitler started an NGO to give money to poor Palestinians he'd have exterminated the jews with western donations.
If you take a 10 year old kid the cost for the west to produce a wageslave will be higher, maybe 40k, but it's still money saved, and they can start the brainwashing younger.
The west is losing their grip on Africa, things will change.
I am hearing and reading a lot of fluff about GDP numbers. Locking down an economy
and then comparing it a year later to the lockdown will produce these kinds of numbers.
but the numbers are misleading and silly to praise them if you understand what they mean.
I can certainly understand a layman to cheer the numbers but I am seeing self-proclaimed
If you compare GDP to the amount of currency in existence, it has been falling for 2 decades!
Remember, M2 is a fraction of the total money supply, therefore GDP has fallen by even more!
Ironically, people fail to realize that Money Velocity, what they point to as causing "deflation", is a much better indicator of stagflation!
It is likely that the exploding...
Hey y'all, Somebody care to explain the anomaly of 2020 here?
This has never happened in the 40 years of data here, maybe it happened sometime before. What has the FED f up now? And what does it mean? As I see it either the dollar gives up and goes full kenukistan, or GDP Goes down again. They can also try to print this s away, however it seems that by printing...
All series are on their own scale. This chart serves 1 purpose, to see change in the values relative to their own range, over time and thereby giving a visual way to see how they moved versus one another over time.
The chart is broken down by presidential terms. This chart does not imply that any one president caused or did something, it's simply a good way to...
Clearly we are getting less and less and less GDP growth for every new $ printed. Yet they call it "Stimulus".
While I am not against deficits, I am against excessive deficits that only manage to fuel asset price inflation .
Zombie companies are not supposed to exist in any economic book. Yet they do and are supported by the FED.
Bankrupt companies with cash flow...
Well done. Central banks did a great job. "QE worked and got us out of a recession". "The old models do not apply anymore" and bla bla bla this time it's different.
Dumb money made a dramatic entry in the markets this year, individual investing in volume terms went from something like 10% in 2019 to 30% in 2020.
And this includes market makers so retail you could...
This is a simple study where I use the SPX to GDP ratio on the log scale in an attempt to determine how far (on the long-term) the current post-COVID sell-off rally can go.
As you see the ratio is within a Channel Up since 1971 with clear Higher Highs and Higher Lows. I used the Fibonacci Channel to identify the pressure points and as you see the 0.382 - 0.618...
Milton Friedman's Money-Supply Rule:
Growth of the Money Supply << Rate of Growth of Real GDP = Recession
--There is not enough money to buy what has been produced.
Growth of the Money Supply >> Rate of Growth of Real GDP = Inflation
--There is an abundance of money and not enough goods - prices will rise
Growth of the Money Supply == Rate of Growth of...
Some that claim that markets are forward looking and see better things ahead. These markets saw nothing coming and ran right into disaster and now they’re simply jumping on the Fed liquidity train again, the very train that got them trapped in the first place. No lesson has been learned. How do we know that? Because the very same mistakes are again repeated and...