Roaring ’20s Or Great Depression 2.0?
Authored by Charles Hugh Smith via OfTwoMinds blog, The binary ahead is the result of a simple law of Nature: adapt or die. Will we revel in a New Roaring 20s of exhilarating expansion, or will we suffer a Great Depression 2.0? Gordon Long and I explore this binary in our latest podcast. Why is the next decade a binary of extremes rather than another period of “muddle through”? The short answer: Cycles. Take your pick: the Fourth Turning, the Kondratieff credit cycle, Peter Turchin’s 50-year cycle, the Debt Supercycle, and a host of others–they’re all hitting their inflection points now. If you dismiss all the cycles, fine. Just look at the political, social and economic state of the world, and you reach the same conclusion: a major historical inflection point in in play. While President Trump’s policies are drawing all the media attention, Gordon and I break it all down to three defining systemic dynamics: 1. America’s great wealth-income divides, i.e. the winners and losers of financialization and globalization: rural / urban, Main Street / Wall Street and the generational …