Wednesday, November 13, 2013

Linear vs. NonLinear....

A long while back I posted on the exponential growth of our monetary base/debt and how it stands in stark contrast to the finite availability of resources.  Today I found a graph that sums this up quite well:



I give you the new normal.  How long will it be until the masses understand that that there are only two outcomes for that red line on the graph:

1) It goes down.... otherwise known as monetary contraction, the deflation, and that for which "there is no plan B" - Bernanke 2013.  

2)  It goes up..... we continue inflating that which has been inflated  (i'll give you a hint, it's not GDP).  


neither outcome is good, one outcome is certain.

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