Friday, October 17, 2014

Real Annual MZM Interest per Capita: Failure to Launch

The following chart shows what the $12.8 trillion sitting in MZM is earning per capita and adjusted for inflation (August 2014 dollars).

Click to enlarge.

Note that the floor (in red) is decaying exponentially but the ~$800 ceiling (in blue) is going nowhere. Also note that the last two visits to the ceiling required epic bubbles as fuel. Isn't that wonderful!

Fool me once, shame on you. Fool me twice, shame on me. Fool me three times, shame on both of us. - Stephen King

Let's zoom in for a closer look.

Click to enlarge.

It's actually worse than it looks for short-term savers. MZM continues to expand. In order to earn your fair share of annual interest (currently $30 as seen in the chart) you must start with $40,000 and continue to add to it (roughly $2000 per year). Fortunately, income inequality greatly concerns Janet Yellen, so a solution is just around the corner no doubt. Barring that, there are other "failure to launch" solutions of course.

It's going to take a stick of dynamite to get me out of my parents' house.

In hindsight, the timing of the movie was nearly perfect. 2006! Now the next generation can just sit back and live the dream. Sigh.

Source Data:
St. Louis Fed: Custom Chart


Anonymous said...

1) So tempting to find the month&year Consumer Price Index that would pin that ceiling to $666 per capita, rather than $800 per capita. Quality time for an obsessive compulsive + Vindication of Scripture ...A twofer!

2) Looks like financial institutions are being encouraged to finance longer term lending with short-term low-velocity low-interest money.

- psychodave

Stagflationary Mark said...


$666 / $800 = 83.25%

83.25 Descending to the Irrational

The method of infinite descent...

Woohoo! ;)

Anonymous said...

Eureka! -psychodave