The deadly 9-11 attacks immediately sliced a massive $640 billion from the US stock markets. But the costs didn’t end there. Bin Laden may be dead, but his ghost lives on, haunting America into bankruptcy. Here’s the rest of the shocking story:
The Dow is still within 300 points of its all-time high. Gold is sticking to the $1,200-an-ounce level like a burr on a wool sweater. It’s been there for about two years and shows no sign of getting restless.
All the “stimulus” since 2000 was a scam. It stimulated nothing but more debt – which slows the rate of real growth.
Today’s young graduates are not only the most heavily indebted in history, but also the least likely to be able to pay their debts. Median wages have been going down since these graduates were about five years old… So have economic growth rates.
Just when debt-addicted American companies were starting to worry that Federal Reserve Chair Janet Yellen was going to take their proverbial punch bowl away, along came Mario Draghi.
The European Central Bank president has made borrowing so cheap in the region that foreign corporations are selling record amounts of debt.
Since the 21st century began, the average US household has lost income. Why has this happened? One answer we proposed to readers of our new monthly publication, The Bill Bonner Letter, was that three of the leading economic zones – the US, Europe and Japan – have come to be dominated by old people.
First, because debt is higher today than it was then. Six years ago, the official public debt in the US was under $10 trillion. Now, it’s about $18 trillion. Total debt is higher too – about $50 trillion in 2007; it’s now closer to $60 trillion.
In the U.S., older voters control both political parties. They control most major corporations. They dominate all major industries. They have their pensions… their health care programs… their stocks… their bonds… their place in the sun.
All over the developed world, the policies that failed are not being thrown out; they’re being stepped up. Stupid. We recognize that our views sometimes seem contradictory. For example, we see central banks pushing up stocks. But we still advise readers to get out.
When we left you yesterday, we were trying to connect the bloated, cankerous ankles of the US economy to the sugar rush of its post-1971 credit-based money system. Today, we look at the face of our government. It is older… with more worry lines and wrinkles.