Mankind’s persistent desire to challenge the inherent laws of nature often leads to futile endeavors. Yet, humanity presses on, perpetually chasing that elusive breakthrough. The temptation of achieving riches without effort is simply too alluring to resist.
Societies have constructed intricate systems filled with unrealistic promises such as attaining wealth without hard work, reaping benefits without taxation, and believing that inexpensive credit can lead to universal prosperity.
At the heart of these assertions lies central governments and planning authorities. They take your hard-earned money, nurturing a climate of dependency in return. They pledge secure retirements and free medications, all while orchestrating a scheme far more convoluted than even Charles Ponzi imagined.
Official statistics from the government suggest that the economy is thriving. According to these figures, we exist in a so-called paradise with full employment, a mere 2.3 percent inflation rate, and the second-longest growth period since World War II. Optimistic reports like these are released monthly, seemingly without challenge.
Yet, we are left questioning the narrative. How is it possible that in this utopia of full employment, 62 percent of United States jobs fail to provide a livable wage for a middle-class lifestyle? In a truly functioning economy, one would expect a favorable labor market where employees can negotiate their worth.
Surely, if it were within their power, workers would choose a middle-class existence. Yet, this is not the case, proving that the notion of full employment is merely an illusion.
An $8 Trillion Purge
This week has unveiled new signs indicating that we inhabit a chaotic realm, rife with illusions that blur the line between reality and deception. What is unmistakably evident is that the potential scope of the eventual reckoning is so vast that it feels incomprehensible.
In the meantime, irrationality and chaos reign with fervor. The stock market, a crude depiction of fear and greed, currently reflects significant uncertainty. Sentiments swing dramatically from one extreme to another.
Last month, the S&P 500 experienced a decline of 215 points, approximately 7.3 percent. This represented its most challenging month since February 2009. Yet, this was just a prelude to greater upheaval…
Goldman’s VIP Basket plummeted by 11.5 percent in October, and the once-mighty FANG stocks — the stars of the digital economy — fell by 21 percent. Collectively, global equity markets shed a staggering $8 trillion in shareholder value.
From a governmental perspective, the U.S. economy appears vigorous and on the rise. The latest report from the Commerce Department indicated a 3.5 percent annualized increase in gross domestic product for the third quarter. At a glance, everything seems splendid. However, digging a little deeper reveals a starkly different reality.
The fiscal year 2018 saw a deficit of $779 billion, a 17 percent increase from the previous year, with projections for fiscal year 2019 aiming to surpass $1 trillion. When deficit spending reaches such heights, GDP growth becomes a reflection of governmental financial distress rather than genuine economic improvement.
In essence, much like the stock market, the days of real economic growth may be numbered…
Pushing Past the Breaking Point
The upcoming challenges facing the economy will undoubtedly be discernible in aggregate data. While metrics such as GDP contraction and rising unemployment may be quantifiable, we shouldn’t place undue faith in them.
However, the real tests confronting the economy are far less tangible. They defy measurement and cannot be portrayed as percentages or documented over time. Yet, they remain as observable as any statistical representation.
To clarify, these challenges are not solely about market fluctuations but are significantly linked to central governmental actions. Over the past three decades, the Federal Reserve and the Treasury have collaborated to manipulate the financial landscape, resulting in a more concentrated wealth distribution among a select few. The extent of this disparity has become glaringly evident.
This trend will only be amplified in the impending economic downturn. Moreover, public resentment towards the wealthy elite is currently more intense than it was during earlier cycles. There’s no doubt that this discontent will escalate dramatically once the economic climate shifts.
Widespread dissatisfaction among the populace, when met with a financial crash and economic collapse, can spiral into a total societal upheaval. Subsequently, the central government will face the repercussions of its own design.
Regrettably, this turmoil will present an ideal opportunity for a more extensive central authority to intervene. They will promise solutions to prevailing issues while perpetuating a heightened level of wealth inequality.
They will not relent. They will push us to the breaking point…and then beyond.
Sincerely,
MN Gordon
for Economic Prism
Return from Pushing Past the Breaking Point to Economic Prism
