Now That U.S. & China Have Picked The Low-Hanging Fruit, Peak Everything Looms

Tyler Durden's picture

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

With no plan to manage an economy in which expanding credit no longer generates growth, the two nations are rapidly reaching Peak Everything.

Let's call the strategy of picking all the low-hanging fruit in an economy Plan A: you know, expanding credit, lowering interest rates, building infrastructure, fueling speculative frenzies, all the good stuff that fans the flames of "growth."

Now that the central banks and political leadership of the U.S. and China have plucked all the low-hanging fruit, they have no Plan B. With no plan to manage an economy in which expanding credit no longer generates growth, the two nations are rapidly reaching Peak Everything:

 

  • Peak Leverage
  • Peak Phantom Collateral
  • Peak Mal-Investment
  • Peak Ghost Malls
  • Peak Doing More of What's Failed Spectacularly
  • Peak Propaganda
  • Peak Smog
  • Peak Housing Bubble
  • Peak Keynesian Cargo Cult
  • Peak Clueless Leadership
  • Peak Central Bank Manipulation
  • Peak Phony Statistics
  • Peak Debt-Serfdom
  • Peak Crony-Capitalism
  • Peak Group-Think
  •  
  • You get the idea.

Gordon T. Long and I discuss the ramifications of the low-hanging fruit having been plucked in this 26-minute slide presentation:

Of related interest:

What Happens After the Low-Hanging Fruit Has Been Picked? (April 2, 2014)