I’m at Disney World right now where it costs a family of 4 at least $1,000 a day just to visit the park (hotel not included) and it seems crowded to me. I can’t figure out where all the money is still flowing from because everything in this article makes sense.
I was in Disneyland recently as well. Midweek pre summer and still very crowded. I agree about the debt part. And also it’s now where childless adults go to escape reality-which may be worth saving or going into debt for for some. Not sure how soon I’ll go back. It’s very regimented and restrictive. As in you can’t purchase entry at a ticket office at all anymore. Must do it all online and good luck if you don’t have a smartphone. Then they search you and take your picture upon entering. All that restriction took some of the shine off the happiest place on Earth. 😬
Thanks for laying this out so well. I have read bits and pieces from other sources, but you put everything together in a straight-forward way with minimal jargon. I hope it's shared on other sites.
I hit 'like', not because I liked the message but because I applaud the telling of it. Our economy is in the pits, mainly because Congress has turned over its duty to manage the currency to big bankers.
This is 100% true for me 14 years in IT and now I've barely had two tiny projects in these last two years, now having to let my credit cards go bust now. 90% of my savings is gone and having to try to find a job paying less than my starting pay I had in Feb 2019. The economy is dying.
Everyone says "wages are increasing, keeping up with inflation", lots of people I know that work in service industries over the last 2 years are lucky to get a 20 cent raise each year.
Government destroys wealth.The private sector creates wealth.Govt has grown so large,it is destroying wealth faster than the private sector can create it. Unfortunately,most Americans look to govt as their savior and want more govt,to fix what govt has destroyed. So,the situation is hopeless,until things get much worse. Watch the common stock of our bankrupt govt,the Dollar. It will take the hit,as the country declines.
Incredible to see the lifeblood of America's economic engine drained from each and every cylinder.
You have to wonder if this was good old-fashioned myopic greed from a constellation of Market participants simply looking out for themselves only, or if this is part of a broader Great Reset / anti-populist coordinated attack.
It’s end game Ayn Rand where if you can’t regulate something to death and tax it so your bureaucracy can keep going. I include badly run government agencies in this. Productivity is no longer rewarding.
I can't argue with statistics, but how reliable are they? As a retiree, inflation has been outpacing Social Security payouts for the last 20 years. Yet for us, we have paid off most debt and have kept medical expenses manageable, thus increasing monthly cash flow despite rising inflation on a mostly fixed income. I am reluctant to burn up savings.
Vacations, better food choices, some new things for the home and an occasional night out are all things we still do. Some of my wife's family (children) all work in the restaurant industry and are still doing fairly well. My children, nieces and nephews are all doing well, some very well financially.
The stock markets, which are somewhat of a barometer for future economic health, even if the majority of consumers ignore it, has been making new all-time highs. Not sure what this is signalling.
"The stock market has been making all-time highs. Not sure what this is signaling."
Signaling an incredible amount of fake money in the system.
Historically the total market cap of the US companies VS the GDP of the US is 80% -- thats the median value for the last 100yrs
Right now we're at 200%.
There is so much fiat fake money chasing so few earnings that the market has NEVER been this expensive.
All time highs are because of concentration. The smallest number of period. People are participating in the stock market right now in history. Meaning the wealth concentration in the markets have never been this high. But it gets better. Now we're all piling into the same seven or so names in the S&P 500. And let's be honest, all we're really doing is piling into Nvidia.
Theres something called passive investing. Its all ANYONE does now.
Active is dead.
Which means no one is acting like white blood cells evaluating equities and debt issuances... no we all chase the beta higher and higher.
Castles in the sky doesn't begin to describe it.
A 65% drop from peak to trough would not surprise me.
That wouldn't be the killer, though.
The Killer: The dollar loses 80% of its value (or more) relative to Gold and Bitcoin and goods in general if that happens.
Any “investment” that is still possibly going to “gain” slightly against inflation will continue to be bought by US and foreign investors. That and unstable currencies of other countries has had large movements of money. But without a proper philosophical foundation the US cities will fail as Mises and Ayn Rand have outlined. Or “we’re still the best dirty shirt in the laundry basket”.
It’s interesting how there is a lot of opposing data around this topic.
Lots of charts also circling the internet about how there is a record amount of cash in Money Market Funds, and a record amount of interest being earned from them.
It really complicates the argument on “does the consumer have cash to spend?”
See Japan for the outcome. Japan bought its own stocks and bonds. The wages there are the crappiest of any industrialized country. Market basically flat housing flat. At least the Japanese still work hard.
I’m at Disney World right now where it costs a family of 4 at least $1,000 a day just to visit the park (hotel not included) and it seems crowded to me. I can’t figure out where all the money is still flowing from because everything in this article makes sense.
That's the debt part.
I was in Disneyland recently as well. Midweek pre summer and still very crowded. I agree about the debt part. And also it’s now where childless adults go to escape reality-which may be worth saving or going into debt for for some. Not sure how soon I’ll go back. It’s very regimented and restrictive. As in you can’t purchase entry at a ticket office at all anymore. Must do it all online and good luck if you don’t have a smartphone. Then they search you and take your picture upon entering. All that restriction took some of the shine off the happiest place on Earth. 😬
They could at least be more subtle and just video record everything.
Thanks for laying this out so well. I have read bits and pieces from other sources, but you put everything together in a straight-forward way with minimal jargon. I hope it's shared on other sites.
I hit 'like', not because I liked the message but because I applaud the telling of it. Our economy is in the pits, mainly because Congress has turned over its duty to manage the currency to big bankers.
Well, at least Ukraine will be built back better maybe later though.
This is 100% true for me 14 years in IT and now I've barely had two tiny projects in these last two years, now having to let my credit cards go bust now. 90% of my savings is gone and having to try to find a job paying less than my starting pay I had in Feb 2019. The economy is dying.
Everyone says "wages are increasing, keeping up with inflation", lots of people I know that work in service industries over the last 2 years are lucky to get a 20 cent raise each year.
ah, the miracle of bidenomics.
Government destroys wealth.The private sector creates wealth.Govt has grown so large,it is destroying wealth faster than the private sector can create it. Unfortunately,most Americans look to govt as their savior and want more govt,to fix what govt has destroyed. So,the situation is hopeless,until things get much worse. Watch the common stock of our bankrupt govt,the Dollar. It will take the hit,as the country declines.
Incredible to see the lifeblood of America's economic engine drained from each and every cylinder.
You have to wonder if this was good old-fashioned myopic greed from a constellation of Market participants simply looking out for themselves only, or if this is part of a broader Great Reset / anti-populist coordinated attack.
What do you think?
It’s end game Ayn Rand where if you can’t regulate something to death and tax it so your bureaucracy can keep going. I include badly run government agencies in this. Productivity is no longer rewarding.
What comes next?
See my comment for Mrs McFarland below.
I can't argue with statistics, but how reliable are they? As a retiree, inflation has been outpacing Social Security payouts for the last 20 years. Yet for us, we have paid off most debt and have kept medical expenses manageable, thus increasing monthly cash flow despite rising inflation on a mostly fixed income. I am reluctant to burn up savings.
Vacations, better food choices, some new things for the home and an occasional night out are all things we still do. Some of my wife's family (children) all work in the restaurant industry and are still doing fairly well. My children, nieces and nephews are all doing well, some very well financially.
The stock markets, which are somewhat of a barometer for future economic health, even if the majority of consumers ignore it, has been making new all-time highs. Not sure what this is signalling.
"The stock market has been making all-time highs. Not sure what this is signaling."
Signaling an incredible amount of fake money in the system.
Historically the total market cap of the US companies VS the GDP of the US is 80% -- thats the median value for the last 100yrs
Right now we're at 200%.
There is so much fiat fake money chasing so few earnings that the market has NEVER been this expensive.
All time highs are because of concentration. The smallest number of period. People are participating in the stock market right now in history. Meaning the wealth concentration in the markets have never been this high. But it gets better. Now we're all piling into the same seven or so names in the S&P 500. And let's be honest, all we're really doing is piling into Nvidia.
Theres something called passive investing. Its all ANYONE does now.
Active is dead.
Which means no one is acting like white blood cells evaluating equities and debt issuances... no we all chase the beta higher and higher.
Castles in the sky doesn't begin to describe it.
A 65% drop from peak to trough would not surprise me.
That wouldn't be the killer, though.
The Killer: The dollar loses 80% of its value (or more) relative to Gold and Bitcoin and goods in general if that happens.
Go watch Gregory Mannarino on YouTube. He covers this just about every day. Not taking anything from St. Onge.
Thanks for this suggestion. Never heard of him. Seems smart and on his game too. More is better!
Any “investment” that is still possibly going to “gain” slightly against inflation will continue to be bought by US and foreign investors. That and unstable currencies of other countries has had large movements of money. But without a proper philosophical foundation the US cities will fail as Mises and Ayn Rand have outlined. Or “we’re still the best dirty shirt in the laundry basket”.
Great thoughts, thanks for the charts!
It’s interesting how there is a lot of opposing data around this topic.
Lots of charts also circling the internet about how there is a record amount of cash in Money Market Funds, and a record amount of interest being earned from them.
It really complicates the argument on “does the consumer have cash to spend?”
Doesn’t end well…..
Buckle up
So, have the markets baked this in already? Or is the market on the precipice of a disastrous drop? Great article, thank you!
See Japan for the outcome. Japan bought its own stocks and bonds. The wages there are the crappiest of any industrialized country. Market basically flat housing flat. At least the Japanese still work hard.