Just when you thought the economy couldn’t possibly get any better (you do think that, don’t you?), word comes from Davos that these current best of economic times are just the start of even greater and more wondrous economic times to come.
Davos, of course, is where 2,500 of the world’s richest folks, hedge fund mangers, CEOs and the like, along with those who control much of other people’s wealth (pols and central bankers) get together annually to discuss how best to further enhance the wealth of the very rich and assure the rest of us that such enhancement will somehow trickle down.
Things haven’t always been happy at Davos, of course. In the last two years these people have been burdened down with a near total economic meltdown they themselves brought about. But that was then. Today, there’s a very different tone coming out of this annual get-together of the world’s best and brightest.
This new tone is summed up in the headline and opening lines of an article about the meeting that appeared on today’s Bloomberg website. Headed “Super Cycle Leaves No Economy Behind…” it begins: “For only the third time since the Industrial Revolution, the world may be entering a long-term growth cycle that will lift all economies simultaneously, driving bond yields and commodity prices higher.”
Wowser! Higher bond yields that already desperately up against it governments will have to pay in lieu of spending on things like education of subsidies for the needy. Wowser! Higher commodity prices leading to higher inflation which will cut into stagnant wages of the still employed and Social Security recipients. These are like dreams come true. Who could possibly find anything wrong with this prescription for growth, which will further enrich mightily bond market vigilantes and commodity traders?
Though one does have to wonder what were those other two “super-cycles” referred to in the article. The period bracketed by the satanic mills of Blake and the street urchin pick pockets of Dickens? Or perhaps the heady decades of growth in Czarist Russia that preceded that country’s unseemly revolution?
A super-cycle! What will the best and brightest at Davos bestow on us next? Like you, I can hardly wait to find out.
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