Economic Cliff Diving - By the Charts…

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The following charts, most of which come to you courtesy of the St. Louis Fed, paint a picture of the current economy that is very unstable at its base. Their “heroic efforts” to re-establish growth and inflation are simply not taking root as of yet.

Try as the Fed, the Treasury, and G20 might, as of yet they are simply peeing into the wind. The collapse of credit and wealth is simply happening much more quickly and powerfully than their reinflation efforts.

While you look out into the future and see that their actions are intended to be inflationary, keep in mind that timing is everything. We had an unprecedented period of inflation already, but we are now correcting the massive malinvestments that were created over years of abuse. Yes, the government actions are unprecedented in scale. They are attempting to reignite their ideal of nirvana which is never ending growth. As you know, if you’ve ever Spent Time with the Good Dr. Bartlett, never ending growth is mathematically IMPOSSIBLE.

In school we learn that curves generally come in the shape of a bell. In fact, in statistical analysis they teach a standard model that all you statistics students might remember is represented by the diagram below:

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Scary charts. Not good...