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.
Over the last 10,000 years, humans have tried two different kinds of “money.”
They began with exchanges based on credit – “You give me a chicken… I’ll pay you back later, maybe by helping you build a new wigwam.” When society became too large and extensive, they switched to gold and silver.
Six in ten Americans will run out of money in their retirement. According to a recent survey by Employee Benefit Research Institute, between 42% and 44% of Americans will not have enough to cover their essential living costs in retirement. And that’s just the basics…
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.
Eventually, there is not enough new money coming into the system to meet social security’s obligations. This point was reached in the US system in 2010. Since then, the system has been running an annual deficit.
You’ll see why in the chart showing the retirement-age population.
We focused on the economy. We might just as well have looked at education, health care, human liberty, safety, politics or war. Almost everywhere you look things appear to be degrading. We are less rich, less free, less safe and probably less smart than we were 15 years ago.
There are more than 100 million people in some kind of federal welfare program, 64 million on Social Security, 54 million on Medicare and 70 million on Medicaid.
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.