The Great Pruning
Major innovations begin by destroying wealth. New tech — from internal combustion engines to dot-coms to AI — offers to cut costs for both consumers and producers. AI may be exceptionally deflationary.
Commentary
Expelled from Paradise
Surely faster growth will help earnings catch up to prices, right? No need for the bubble to pop? Today’s stocks may seem cheap when this growth surge is fully realized. Right?
Breaking Math
Speculators buy into bubbles, not investors. In the bubble psychology, speculators believe that they can buy high…and sell even higher.
From Bubble to Eternity
By almost all measures, US asset prices are in a bubble. Based on Cyclically Adjusted P/E ratios, the S&P 500 has been this high only one time in history — at the height of the Dot.com bubble.
Rough Trail Ahead
Government takes many different forms. But the one form all governments share is that of a criminal enterprise. At the end of the day, the feds force people to do things they don’t want to do.
Vengeance, thy name is Virginia
But here’s the critical part: they will use their newfound power as Trump did — to punish their enemies, further their own pet projects and buff out their own authority.
