How Can A $300 Trillion “Recovery” Hide In Plain Sight?

Now, you may be wondering…

How can a $300 trillion economic juggernaut hide in plain sight?

If it’s this big, how is it possible for all the economists, gurus, and experts to miss it?

For the same reason they all missed the financial crisis. They were looking at the wrong things.

Instead of looking at facts and historical trends, they consulted their theories and talked to academic policy wonks.

What they didn’t do was talk to the pros tasked with making real money in the real world.

Why Are The Experts
So Blind?

The esteemed economics writer Robert J. Samuelson gives us a clue: “By and large, most economists don’t care much about history. Introductory college textbooks spend little, if any, time exploring business cycles of the 19th century. The emphasis is on ‘principles of economics,’ as if most endure forever. Economists focus on constructing elegant, mathematical models.” (emphasis added)

-Washington Post, July 6, 2009

But as we’ve just seen – painfully – the so-called truths most economists live by belong in the dustbin of history. Indeed, history is a far better guide to what’s happening now than all the economic models in all the economic textbooks in America!

Now, the same thing is happening, but in reverse. As this earth-shaking $300 trillion tidal wave deluges the world economy, the economists and gurus are missing the boat again.

And even though I’ve been screaming about this for many months, I can’t blame them.

You see, the experts are trained to see the economy in certain ways. And, by and large, their training has served them well for the past 60 years or so.

So that’s what they look for – signs of a return (a “recovery”) to the robust way things were before the crisis.

But it just ain’t going to happen that way.

Instead of consulting theory, economists should be looking…at history. At what has happened before. And at what’s happening now.

If they did, they’d see the current upheaval is actually the “birth pangs” of a new economic order that will dominate the world for the rest of this century.

A new order bearing unimaginable riches for those who can see it – and act on it – correctly.

It’s like being able to invest at the START of the Industrial Revolution… steam and railways… the automobiles and mass production… and the information and telecommunications revolutions.

In other words, what we’re seeing now has happened many times before…

History Is Repeating Itself…
Collapse & Readjustment Wealth Created
Industrial Revolution 1771 Canal Panic 1797 (Britain)
  • Diffusion of manufacturing with water power
  • Full network of waterways (canals, rivers, oceans)
  • Development of public companies
Steam & Railways 1829 Railway Panic 1847 (Britain)
  • Economies of scale
  • Joint stock companies
  • Repeal of tariff laws/free trade
Steel, Electricity & Heavy Engineering 1875 Global Collapses of the 1890’s (Argentina, Australia, U.S.)
  • Transcontinental rail, steamships and telegraph
  • Gold standard, global finance
Automobiles, Oil & Mass Production 1908 Great Crash of 1929 (U.S.)
  • Interstate/international highways and airways
  • Welfare state, Bretton Woods, IMF, World Bank
Information & Telecommunications 1971 NASDAQ Crash 2000 & Global Collapses (Asia, Argentina, U.S.)
  • Global digital telecommunications network
  • Institutional framework, facilitating globalization

And it’s happening again right now…

But this time, its epicenter is China…

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