Fundamentally also keep in mind that our population of peak earners has peaked and is in the process of crashing. The peak earnings and thus peak spending statistically occurs at age 46.5 in the United States and the Baby Boomers aggregate peak is now beyond peak! They also pulled future income forward in time, shifting that peak sooner via the massive use of debt. So, with peak earners/spenders in steep decline, and the Fed targeting 2 or 3% growth, what does that tell you? It tells me that the only way to create “growth” is via more paper. It’s a completely ridiculous notion that a government would attempt to create growth with a shrinking population of peak earners (this is far more important than overall population size). This is just another example of how unsophisticated the Fed and our government is in understanding the economy – intentionally so, I might add.
Speaking of population size, the U.S. has 308 million people. China has 1.324 billion people, four times as many! Yes, it is significant that their total energy consumption just exceeded that of the U.S. – our energy consumption has declined the past two years which fits with the shift beyond the Boomer’s peak. Harry Dent has done a ton of good research regarding demographics all over the world, if you are after more demographics information, his site is where you will find it - www.hsdent.com.
Below is his chart showing the Boomer’s generational wave. Note the peak in the spending wave that has already occurred:
Join us on our
Share this page with your friends
on your favorite social network: