{"id":375895,"date":"2018-09-03T08:10:39","date_gmt":"2018-09-03T07:10:39","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/once-the-bubbles-pop-lewrockwell\/"},"modified":"2018-09-03T08:10:39","modified_gmt":"2018-09-03T07:10:39","slug":"once-the-bubbles-pop-lewrockwell","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/once-the-bubbles-pop-lewrockwell\/","title":{"rendered":"Once the Bubbles Pop – LewRockwell"},"content":{"rendered":"
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

I hate to break it to you, but the\u00a0everything bubble\u00a0isn\u2019t permanent.<\/i><\/p>\n

OK, I get it\u2013the Bull Market in stocks is permanent.<\/b>\u00a0Bulls will be chortling in 2030 that skeptics have been wrong for 22 years\u2013an entire generation. Bonds will also be higher, thanks to negative interest rates, and housing will still be climbing higher, too. Household net worth will be measured in the gazillions.<\/p>\n

Here\u2019s the Fed\u2019s measure of current household net worth: a cool $100 trillion<\/b>, about 750% of disposable personal income (DPI):<\/p>\n

\"\"<\/a><\/p>\n

Household net worth has soared $30 trillion in the past decade of permanent monetary and fiscal stimulus.<\/b>\u00a0No wonder everyone is saying Universal Basic Income (UBI)\u2013 $1,000 a month for every adult, no questions asked\u2013is affordable, along with Medicare For All (never mind that Medicare is far more expensive than the healthcare provided by other advanced nations due to rampant profiteering, fraud and paperwork costs\u2013we can afford it!)
\n\"\"<\/a><\/span><\/span>
\nMoney and Work Unchained<\/a><\/span><\/span>
\nCharles Hugh Smith<\/span>
\nCheck Amazon for Pricing.<\/span><\/span>
\n<\/a><\/span>
\n<\/span><\/p>\n

And we get to keep the Endless Wars ™, trillion-dollar white elephant F-35 program, and all the other goodies\u2013we can afford it all because we\u2019re rich!<\/p>\n

We\u2019re only rich until the bubbles pop, which they will.<\/b>\u00a0All speculative bubbles deflate, even those that are presumed permanent, And when the current\u00a0everything bubble<\/i>\u00a0pops, net worth\u2013and all the taxes generated by bubble-era capital gains\u2013vanish.<\/p>\n

Take a look at the Federal Reserve\u2019s\u00a0Household Balance Sheet (June 2018)<\/a><\/b>:
$34.6 trillion in non-financial assets
$81.7 trillion in financial assets
$15.6 trillion in total liabilities ($10 trillion of which is home mortgages)
$100 trillion in net worth<\/p>\n

So $25 trillion is in real estate. When the housing…<\/b><\/p>\n<\/div>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I hate to break it to you, but the\u00a0everything bubble\u00a0isn\u2019t permanent. OK, I get it\u2013the Bull Market in stocks is permanent.\u00a0Bulls will be chortling in 2030 that skeptics have been wrong for 22 years\u2013an entire generation. Bonds will also be higher, thanks to negative interest rates, and housing will still be climbing higher, too. Household […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-375895","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/375895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=375895"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/375895\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=375895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=375895"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=375895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}