Making Sense of What is About to Happen

The United States (and the rest of the world) is about to plunge into a recession which could be prolonged. This period might actually be more of a permanent reduction in our standard of living than a temporary downturn.

We have come to expect ever increasing actual wealth but for many years that "wealth" has been an illusion created by our manipulation of interest rates, housing values and deceptive calculation of inflation.

True productivity has been squeezed from technology but there are limits to the amount of information a single worker can meaningfully manipulate and turn to profit.

The fiscal cliff which I last wrote of in July is now only 4 months away and it's repercussions are a constant background discussion which unfortunately is not rising above the shrill cacophony of the election. The cliff is in plain view. The consequences are written into the law. No one, except a few Congressmen, are paying any heed.

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