The following chart shows the interest earned on MZM money stock divided by disposable personal income.
Click to enlarge.
Unless one counts cost cutting (and therefore weak employment growth) as a long-term growth strategy, we're apparently fresh out of "genius" ideas.
The chart is especially interesting if one considers how much MZM has grown relative to disposable personal income. It's almost like the more MZM we generate, the harder it is to generate interest off of it. Yeah, it's almost exactly like that. Think Japan.
This coincides well with my long standing belief that it will be increasingly difficult to make money off of money. Those anxiously awaiting higher/juicier real yields over the long-term may be in for serious disappointment, much to the ongoing dismay of Brett Arends at the Wall Street Journal. What a trip down memory lane that link is by the way. 2008, what a year!
This is not investment advice.
Source Data:
St. Louis Fed: Custom Chart
Philly Fed: State Coincident Indexes Increased in 44 States in March
(3-Month Basis)
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From the Philly Fed:
The Federal Reserve Bank of Philadelphia has released the coincident
indexes for the 50 states for March 2024. Over the past three mo...
3 hours ago
2 comments:
Just fiat returning to its intrinsic value... that of the paper it's printed on.
And yet, hyperinflation is not yet upon us (nor do I expect it any time soon).
Domo Arigato Mr. Roboto.
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