The Economic Future Is Bleak

Monty Pelerin / Economic Noise

Readers of this website know my pessimism regarding the economic future of this country (and most of the developed economies of the world). The economic future is bleak!

The following points describe recent conditions and near-term expectations:

• There has been no economic recovery.
• Continued economic stagnation is the best that one should expect.
• Economic stagnation cannot be maintained  permanently.
• A crash of financial asset prices is near.
• An economic depression rivaling the 1930s is unavoidable.

Expect this summer to be another “summer of recovery,” as it was termed by the Obama Administration, seven years ago. Hopefully, it will fail like its six predecessors. The alternative is much worse!

The Decline In The Economy

The economic decline is not attributable to Obama. It began long before anyone knew his name. His Administration has accelerated the process with their own asinine economic policies, policies which are worse than any of his predecessors, however.

The United States has been in decline for many decades. It results from government over-reach in terms of spending, taxation and generally poor economic policy. Over time this involvement has produced economic dis-incentives and inadequate capital creation. (Please note that I mean capital goods generation and not money creation.) In any given year the damage is unquantifiable. Over time it cumulates.

The following chart shows the increasing weakness of the US economy over a four decades plus period. This chart shows the decreasing ability of the economy to recover from economic slowdowns:

The chart and accompanying commentary can be fround at  Zerohedge:

For a long time, nearly four decades, growth has been getting progressively weaker during each recovery from recession.

Read more at Economic Noise:

http://www.economicnoise.com/2015/03/26/the-economic-future-is-bleak/