Our hot-cold economy is dying of 90s aids.

John Vargas as Lorenzo Delgado in Primary Colors (1998)
Data from the ABS. Link above.

The big picture is this:

Businesses need labour. But businesses can’t afford labour. At least not at the wages that would allow those workers, collectively, to purchase the goods and services that these businesses, collectively, are selling. For decades this has been the case, and credit has been filling the gap — as Geoff Crocker has documented in his book Basic Income and Sovereign Money.

A graph from Crocker
Google Trends data shows interest in the Federal Reserve trending upwards before and after the pandemic

So here’s my prediction:

The central banks of the world will kill inflation, but in doing so they will trigger a full blown deflationary spiral. After that it’s anybody’s guess. At that stage we’re talking about how the wreckage will scatter after the plane crashes.

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