Back in the 1980's it was decided that WAGE INFLATION had to go....
Instead we got ASSET INFLATION, 401ks, China, Free Trade and Cheap Labor...alas, the rest is history....or soon will be.
First we had the Stock Bubbles, now it's Real Estate, and some "commodites" like oil...THE US ECONOMY IS COMPLETELY DEPENDENT ON ASSET BUBBLES.
THERE IS NO CURE......short of another Great Depression......and that may be coming soon. The US economy is a giant conundrum inside an anomaly wrapped in a mystery.
The NEXT KEYNES will have to "solve the economic puzzle" for the CONSEQUENCES OF CHEAP LABOR AND ROOTLESS INTERNATIONAL CAPITAL.....
Economics Grad students had better get started...because there is a Nobel Prize for the taking!
Hint: Very High interest rates are coming....1980 Redux!
