The Coming Great Depression: 4 Intersecting/Reinforcing Trends
Long time Smart Economy Blog readers will recognize that we've covered two of the four long term cycles listed by Charles Hugh Smith below in great detail-1) the Peak Oil Extraction/Depletion cycle and 2) the dozen or so credit bubbles that are yet to burst in the Credit Expansion/Contraction Cycle.
Smith proposes two more cycles that will add to the pain and length of this recession/depresion-3) the 80 year generation cycle that ends in war or conflict (corresponds nicely with the 22 year sun spot /global cooling cycle; also see video US government has 500,000 coffins on order)and 4) the +100 year price inflation/wage stagnation cyle (as we shift from a higher paying worker class economy to a generally lower paying service class)
Charles Hugh Smith offers the following justification for the current recession/depression on his blog today
1. Peak oil, or the depletion cycle/end-game of the global economy's complete dependence on inexpensive, readily available petroleum/fossil fuels.
2. The cycle of credit expansion and contraction (approximately 60-70 years), which is now beginning the transition from unsustainable credit expansion (bubble) to renunciation of debt (credit collapse) and global depression.
3. The generational cycle (4 generations or approximately 80 years) of American history which leads to nation-changing social, political and economic upheaval. (The American Revolution: 1781 +80 years = Civil War, 1861 +80 years = 1941, World War II + 80 years = 2021)
4. The 100+ year cycle of price inflation and stagnation of wages' purchasing-power which began around 1901 is now reaching the final stage of widespread turmoil, shortages, famine, war, conflict and crisis.
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