by Bill Bonner
Corrupt and Unsustainable
James has been a big help. Trying to get him to sleep at night, we have been telling him fantastic and unbelievable bedtime stories – full of grotesque monsters… evil maniacs… and events that couldn’t possibly be true (catch up here and here).
[…] Yes, we have been explaining our modern money system… and coming to understand it better ourselves. The boy, just 14 months old, has probably missed some of the subtle points. But we feel confident that he got the gist of it. He knows the system is corrupt and unsustainable. He probably wonders how it will end; so do we.
Like a child that has climbed a ladder when no one was looking, U.S. stocks are near an all-time high. Soon, its parents will startle awake and try to get it down without injury. For the last five straight quarters, U.S. corporate earnings have fallen, while stocks have gone up. This divergence is not likely to last much longer.