BarroMetrics Views: QE, S&P & History II
Historical & Social
In “Blood in the Streets“, Lord Rees-Mogg and Davison, make the point that economic prosperity is dependent on certain social and economic structures that exist when one power has a monopoly over a ‘force’, e.g. gunpowder, atomic material etc. When that power is diffused, the structures break down as a host of competing economic and/or military blocs arise.
The authors took the view that the US was just starting its decline at the time of their writing (1988). My major take away from their thesis was as a power declines certain social clues can be seen. One of these is the emphasis on the protection of the state at the expense of the individual
The authors were wrong about the starting date of the decline. The Reagan (with a slight pause) revolution extended by Clinton, delayed the decline. Bush and now Obama have confirmed it.
We are ‘lucky’ that the Snowden affair has shown just how much US influence has declined and how much the US Government has supplanted the Founding Fathers’ preeminence of individual rights with the preeminence of the state.
Coupled with the magnitude of QE, the clues are signs that we’ll see a strong move down in US Stocks.