The excellent point has been made that the reason that economic indicators remain in reasonably strong territory is that an ever-greater proportion of it is composed of government spending.
As life for households and small business becomes tougher and tougher, so governments will not only maintain, but will increase spending. To compensate! In other words the overall problem, which is state intrusion into the economy, will be increased.
But there is always an end to such monetary and economic buffoonery.
Argentina has demonstrated that – over and over.
What will governments spend when they can no longer borrow in the bond markets?
“I am a rich man as long as I don’t pay my creditors.” Titus Maccius Plautus (c. 254-184 BCE) ‘Curculio’
How much longer can the current ‘eye of the storm’ situation continue?
That’s anyone’s guess.
Mine is that the collapse will begin toward the end of this year – 2023. It will begin with a bond market failure. The failure of a bond sale in one jurisdiction will immediately lead to failures elsewhere.
That will be followed by Gold backwardation and currency collapses.
On that day, what is ‘normal’ will never be the same again.
Even our media might be forced to report that truth.
And people will march in the streets demanding that governments spend more.