Charting The Extinction Of American Disposable Income

Zero Hedge notes:

For four decades, US real per capita disposable income has risen at ~20% a decade. For the average working man, that is a doubling of disposable income in a typical working life. The last 5 1/2 years, however, have seen no change whatsoever – the worst performance in at least half a century.

I’m going  to add a little more to this story.

The reason why US disposable income has continued its long climb over such an extended period of time is because the US held the world reserve currency over this long period.  In effect, the US was able to print money while getting the rest of the world to accept our counterfeit money in exchange for their real goods and services.  This situation has begun to reverse itself over the past five years.

Now the monetary Ponzi scheme known as the US Dollar has reached its tipping point.  While the world is still accepting dollars in payment for its goods and services, the money printing has reached such epic proportions and the structure of production has become so distorted that the economies of the world have ceased producing more than the world is consuming.  The world is literally cannibalizing itself.

Soon the world will begin rejecting dollars in exchange for goods and services outright.  When that day comes, we will find out what the real value of the dollar is (which is nothing).  The world will once again force the US to produce something of value in exchange for something of value.  This will precipitate the total collapse of the American global empire.  The dollar will become defunct.  We are witnessing this play out in real time right now.

We must never forget that dollars are simply a representation of resources.  Printing more money does not magically create more resources; it simply redistributes who controls those resources into the hands of those who get the new money first while it still has value.  This is also why we see wealth being ever more concentrated into the hands of the Wall Street financiers.  They are the ones, along with the State, who get the new money first.

In order for disposable income to increase under a stable monetary system that does not involve institutionalized counterfeiting and fraud, the economic productivity of the economy must expand.  That is to say, the economy needs to make more stuff more efficiently in order to see an increase in disposable income.  Our country today makes nothing except weaponry and cars, and poorly at that.  Consumer goods manufacturing has nearly been wiped out entirely in comparison to years past.  Therefore it stands to reason that most of the disposable income gains we have seen over the past 40 years are predicated on the printing of money, and not on the expansion of productive economic activities.

America will pay the price for this global theft.