The K-wave is NOT a 50 to 60 year cycle, but rather the period between two financial depressions.
In “The Recovery Myth” I was wrong about the timing of a Kondratieff Wave, but NOT about genuine recovery being a myth.
THE CHART BELOW IS MORE LIKE IT, and 1971-72 was the peak of the current post-war K-Wave if we look at continued diminishing GDP growth since then.
That’s when speculation took over in the cycle. It had once again become fashionable for governments to wind back taxes on economic rents.
I’ve not studied WD Gann, but from what I understand, he had a good grip on business cycles, too.
1971 was also the year that the USA dropped the ‘gold standard’ because, amongst other things, France’s President De Gaul called the US out by cashing in on the deal. (‘Danny the Red’ seemed to put an end to that!)
Not to suggest that we need to return to the gold standard: we shouldn’t. There’s only one way to end inflation: that is, to tax land values and untax incomes and purchases, as argued by Henry George.
But where do we find common sense in economics these days, President-elect Trump and Elon Musk, that is, with tax regimes designed to penalise productivity and reward speculation?
Nowhere?
So, President Trump is going to oversee the upcoming financial debacle. It’s kinda fitting that a major property speculator should preside over it.
