I read a Howard Gold Market Watch article yesterday with the above title. The above bears consideration. I read a book that looked at the aftermath of people wiped out in 2008 called Nomadland which I found compelling. It tells the tale of middle to upper middle class people who were essentially wiped out in the 2008 downturn. First went the job, then the pension and savings in an attempt to save the stability afforded by having an address, then went the house and people moved into their cars to suffer day work and gig contracts as the means to buy their daily bread. The sugar beet harvest is one of the best gigs all year, but it in reality is a bone crushing experience, especially for a 70 year old once college admin who burned up all his dough trying to save his address.
I’ve listened to a series of interviews (here and here among others) with Jeff Booth. His argument is basically about the creative destruction of technology causing an exponential deflation, and how the FED’s around the world will try mightily to ignite inflation to monetize the debt but will fail because the inflationary action of printing money is linear growth, while the deflationary action of technology is exponential, meaning it’s asymmetric. Broke Americans are also deflationary. If technologic deflation does prevail according to booth the problem will be solved.