The TINA Economy-A Byproduct of USAPonzi
Jun 10, 2014
What is The TINA Economy? TINA means: "There Is No Alternative." This is an acronym that was used (possibly created) by Margaret Thacher when she proclaimed: "there is no alternative to free market capitalism". This acronym was re-purposed over a year ago by Jason Trennert, Chief Investment Strategist and Managing Partner at Strategas Research Partnerts, to mean that in today's financial world "there is no alternative" to the Stock market. (see WSJ Article April 2, 2013)
In this commentary, I am re-purposing this acronym to mean that we are living in "The TINA Economy" that has been created by USAPonzi. I totally agree with Jason Trennert that "there is no alternative", in the short term, to stocks vs. other assets when we are living in "A Ponzi Economy" that has been created by the U.S. Government's use of corrupt and fraudulent accounting. But that presumes that you are prepared to invest in a Ponzi Scheme.
As "Asset Prices to Infinity" explains, as long as the Govenment continues to use Cash Accounting and continues the resulting massive GAAP basis deficit spending, our economy will have this massive articficial stimulus and will continue to expand our GAAP Obligation ($95.9 Trillion as of June 1, 2014). As a result, the Stock Market will be pushed upward by this Ponzi Scheme and the Federal Reserve will continue to keep rates low so the Government can afford to convert more and more of this $95.9 Trillion GAAP Obligation to debt owed to the public as this $78.5 Trillion of social benefit promises transitions to actual cash payments to the U.S. Citizenry.
But as "U.S. Total Assets Bubble" demonstrates, we are in an asset price bubble that has been created by USAPonzi and the "real" value of our privately held assets is about 14 cents on the dollar.
The bottom line is; "The TINA Economy" is surfing on "The USAPonzi Economy".
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