History teaches us that when governments overspend and central banks over print, eventually reality sets in.
Ever since 1971, when the US Dollar became a fiat currency, and new currency has been created by loaning it into existence.
For many years I have written about how economic data is often ‘massaged” (or manipulated?) to make the reported numbers look more favorable.
Ever since the time of the Great Financial Crisis, I have written about the topic of bubbles.
Debt has consequences. As does currency creation to temporarily mask the economic effects of excessive debt.
Over the past couple of years or so, every American has felt the effects of this dollar devaluation first-hand as consumer price inflation has driven the price of nearly every necessity higher.
Depression parallels? Not a comfortable topic to discuss, to be sure. But as my now oft-quoted history professor used to say, “those who don’t study history are doomed to repeat it”.
Happy New Year! And, with the new year comes higher taxes, thanks to the Washington politicians.