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European Salon de News, Discussion et Klatsch - 22 March | 84 comments (84 topical, editorial, 0 hidden)
Re: Economy and Finance (4.00 / 5)
THE Most Important Chart of the CENTURY, Nathan's Economic Edge  H/T to commentor doublethink on Zero Hedge

The latest U.S. Treasury Z1 Flow of Funds report was released on March 11, 2010, bringing the data current through the end of 2009. What follows is the most important chart of your lifetime. It relegates almost all modern economists and economic theory to the dustbin of history. Any economic theory, formula, or relationship that does not consider this non-linear relationship of DEBT and phase transition is destined to fail.

It explains the "jobless" recoveries of the past and how each recent economic cycle produces higher money figures, yet lower employment. It explains why we are seeing debt driven events that circle the globe. It explains the psychological uneasiness that underpins this point in history, the elephant in the room that nobody sees or can describe.



"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Mar 21st, 2010 at 11:27:56 PM EST
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European Salon de News, Discussion et Klatsch - 22 March | 84 comments (84 topical, 0 editorial, 0 hidden)
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