Keeping The Slow Growth Forever Economy In Mind

Today I reminded people that everything is in the context of the "slow growth forever" economy. What is that, well, google the term with my name after it: slow growth forever spano.

Slow growth forever has nothing to do with my height. Demographics drive economic growth. With the retired population growing faster than ever, there are massive deflationary pressures that we will face for the next two to three decades.

It is the reason that inflation hasn't taken off despite nearly constant stimulation from governments. Our challenge the next three decades is to prevent a mass collapse in standard of living. It will require, most likely, a massive bailout of the retirement system.

The problems associated with aging-demographics aren't unknown. We have just not planned for the realities for 40 years now. We will need to find a solution soon. And, it's probably a "lock box" full of "helicopter money."

I'm not alone in my thoughts about this. Ray Dalio, the most successful hedge fund manager and billionaire, discussed recently is how do we maintain people's standard of living. Many others have discussed it as well. It's where all the talk of Modern Monetary Policy has evolved from.

If you want to protect and grow your standard of living, there is nothing more important than understanding the aging-demographics problem and the likely solutions. (BTW, the idiot Austrian economists (small e) who think a depression is a legitimate depression, they can give up their standard of living first.

We also touched on several other topics, including why I bought Tesla shares back, oil stocks likely rebound from Norway selling pressure and why the economy seems to be following the same path it did under President George W. Bush.

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