The world growth crisis
Every single country in the world with the sole exception of India, is in a growth rate decline crisis.
There is also $11 Trillion in worldwide sovereign debt that is currently being serviced by negative interest rates. This is not possible unless real interest rates are even lower, meaning we are in a deflationary spiral, disguised as secular stagnation combined with full employment.
That’s also economically impossible unless the unemployment number (U1) at just UNDER 5% is a mirage, or wages are losing buying power. In fact, both of those are probably true. The non-participation rate or U6 is at 38%, a record HIGH.
This second number leads one to wonder if underneath the great news unemployment rate is other, very troubling news.
And wages have dwindled per household against spending power, by $6,000 per family over the last 20 years, a terrible, terrible statistic.
Our lack of inflation, the strong dollar, our productivity growth rate crisis and our debt crisis all require much higher rates of growth spread around the globe, for us all to survive.
I know that last sentence sounds melodramatic, but think about it – what will the nations of the world do if they aren’t jointly accelerating their GDP growth rates (while curtailing debt) out of this already interconnected mess?
That’s right, they’ll be warring their way out.