The following chart shows the natural log of the dividends to wages ratio. When using natural logs, constant exponential growth is seen as a straight line. I have added two trend lines in red (one for the peaks and one for the troughs).
The two trend lines can be traced back to where they meet. The year was roughly 1971. Doubt it's a coincidence. I'm tempted to say that falling off of the gold standard is when the illusion of long-term prosperity truly began. Kind of makes me feel like a prosperity chart archeologist.
As disturbing as that is, I'm not done yet. Note that:
1. Bad things often happen when we move towards the troughs.
2. We've been moving towards a trough lately.
3. Very bad things have been happening lately.
4. Should we ultimately reach the next trough, there's still a very long way to go.
Newsletter: New Home Sales Decrease to 657,000 Annual Rate in January
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Today, in the Calculated Risk Real Estate Newsletter: New Home Sales
Decrease to 657,000 Annual Rate in January
Brief excerpt:
The Census Bureau reported...
3 hours ago