The Everything Bubble
The global economy right now is striding through uncharted territory, to many, it may have become old hat, the talk of doom and gloom economic collapses, however, the reality is it’s overdue and inevitable.
Unlike the previous crashes over the past few decades where we have had bubbles in single isolated areas of the economy such as the real estate bubble of 2008 which led to the 2008 financial crisis, or the dot com bubble of the late 1990’s, this time the bubble encapsulates every aspect of the Worlds economy. We are in an Everything Bubble.
Since the 2008 financial crisis the economy has been super charged in the US and Europe with money printing becoming the new favourite pastime for central banks. The US has increased their money supply by approximately 500% since 2008, Europe has not been quite so aggressive but still have increased their supply by over 300%.
Baring in mind it took the US almost 100 years to merely double their supply this last decade has seen expansion of the dollar like never before.
With this we have seen the real estate market inflate dramatically, the stock markets have reached new all-time highs, credit lending has reached new all-time highs, leverage trading has reached new all-time highs, in fact, everything backed by fiat currency has seen more growth in the last 10 years than any decade that precedes it.