New fiat economy record

The S&P 500 exceeded 5,000 points for the first time.

Is this good, and does it speak to the good state of the American economy?

Oddly enough, it is premature to speak of positive, as well as negative.

We are living in an extraordinary time, when the usual indicators are starting to live their lives and stop the traditional function of describing the state of the economy. The economy has become a very complex organism, within which the life of individual directions and tools is formed. 

Investors look at the growth of stocks and rejoice at the impressive growth.  However, very few of them wonder about the source of this growth. 

The main magical source of wealth for American companies is huge solvent demand. There is a lot of money in the American economy, ьoney goes mainly from credit resources. Everyone takes on debt - the state, companies, individuals. Until a time this scheme worked. This was facilitated by the status of the dollar as a world currency. 

Let’s think of a household economy where expenses exceed income and deficits are covered by credit.  Since the deficit is constant, then the debt on the kredt is constantly growing. From the point of view of normal everyday logic, before us - the way to bankruptcy. Such a household is not viable.

But the state thinks it’s perfectly normal.  Note that no one aims to eliminate the deficit of the state budget, at best to reduce it.   

So, we’re enjoying high speed and comfort on the way to the cliff.

This is not a country-specific problem - it is a fiat system that technically allows such expenditures.

So, stock market growth is good, but that doesn’t mean the economy’s okay. On the contrary, the crisis of the fiat system is gaining momentum - the car, flying to the cliff, has included the last gear.

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