*Many see me always write about the ‘credit-fueled’ economy post 1980’s
Here’s a way to look at it
After the 1970’s, US broad money has exploded relative to US real GDP
Bank credit has decoupled from the economy and grown far faster ~ most going into non-GDP:speculative assets pic.twitter.com/50TRuB6151
— Adem Tumerkan (@RadicalAdem) May 30, 2023
And for good measure – throw in real median household income
Again, flat for over 40yrs..
Thus required huge amounts of credit to subsidize the gap in spending (esp buying homes and etc)
Real wages haven’t kept up at all
Once borrowing stops (deleveraging)… yikes pic.twitter.com/Ud4Fx8ZtKg
— Adem Tumerkan (@RadicalAdem) May 30, 2023
h/t Simian_Stack